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Business For the Independent

Sarah Willis

English III Honors

Mrs. Kopp
February 26, 2014

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Sarah Willis
English III Honors
Mrs. Kopp
26 February 2015
Business for the Independent
A man gets into his Toyota and drives to Starbucks before going to work at Century 21
Real Estate. During work he sits down at his Bassett Furniture desk and starts clicking away on
the Dell laptop he brings. On his lunch break, the man drinks from a Deer Park water bottle and
eats a McDonalds Big Mac. After work he picks up dinner for his family at a Publix and drives
his Toyota home. He does not realize how many small companies he invests money into each
day. Every car, restaurant and office all started with someones idea of a product or service they
could sell. Business management and entrepreneurship touches on more than just running and
controlling a company. These have emerged as solid careers largely because of their growing
industry and promising rewards. However, in order for one to consider themselves a successful
entrepreneur, they must first know to create a viable business plan, understand the fundamentals
of starting a company, and how to flourish in the business world.
All businesses started with one person who had an idea. Whether they started a giant
franchise in the food industry or launched the biggest clothing store in history, each of these
people successfully managed to kick start their idea. A well-known example of this, Ralph
Lauren, started designing and selling mens neckties under the name Polo in 1967. Large
department stores such as Bloomingdales or Macys permitted him to use only one rack of his
ties (Lauren 395). However, the ties grew in popularity faster than expected so the stores allowed
Lauren more and more space for his ties. Lauren then started to design clothing and eventually

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came up with the Polo Ralph Lauren polo shirts. Since Lauren made his store in New York
public in 1997, the entire company consists of clothing for men, women, and children as well as
a booming fragrance line and home dcor. It wasnt the tie; it was a commitment to myself. It
was a commitment to do what I loved and give it my all. It was exciting. That tie grew into a
whole industry, Lauren states in his book Ralph Lauren. His success, estimated around $6.5
billion, makes Ralph Lauren the 122nd wealthiest man in the world (Lauren 450). Polo Ralph
Lauren works as just one example of how someone's idea can create a multi-million dollar
company. Other examples include Walt Disney, Mark Zuckerberg, and Steve Jobs, whom each
reached success in the world of entrepreneurs.
Many things can inspire one to become an entrepreneur. Anything from a parent to an
idea has the power to motivate a person to start their own business. For example, Walt Disney
wanted to create a world that revolved around the happiness his cartoons gave him. Disney
opened Disneyland Park in Anaheim, California in the summer of 1955. Inspired by Californias
natural beauty as well as Walts classic cartoon style, Disneyland has made over $17 billion. One
mans simple feeling turned into one of the most successful theme parks in the world (Gabler
327). Every major franchise, like Disney, starts with a small idea. The visionary needs to know
how to get their idea known to people. In order to make money off of ones idea, one must first
learn the basics of business by getting a proper education.
Considering over 75 percent of new jobs in the United States come from small
businesses, colleges now stress the importance of having basic business skills. High Point
University in High Point, North Carolina teaches young entrepreneurs great business principles.
Everything at the school serves a purpose to better prepare its students for the business world
ahead of them. They built their facilities in the fashion of a professional business building so

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when the students entered the real world, they would not feel intimidated by the decorative
chandeliers or the large lobbies. The students get a feel for what it feels like to sit in a
professional board room in an office building. High Point University also offers specialized
classes specifically designed for entrepreneurship (HPU). Today, schools do a great job of
motivating students to pursue their career as an entrepreneur. They teach students what they need
to become successful and also help students decide if they want to start their own business or not.

Evaluating oneself and their current situation plays a crucial role in deciding whether or
not to start a business. A person must possess certain qualities to successfully commence and
carry out a business plan. Integrity, creativity, and the ability to motivate others are all qualities
that most entrepreneurs have. Business owners need to understand how to communicate with
others and get their ideas across in an effective, unpretentious way (Hannon 7). Those wanting to
start a business also need to take the long-term view on the project. If not, the company will only
go as far as the owner sees it and will ultimately fail. The seriousness of looking at the long-term
view starts with the current situation of the person. They need to have good savings, personal
credit, and assets such as a car and a house (Ebony 48). Entrepreneurs also possess traits such as
solid organizational skills as well as a basic sense of accounting. They need to understand how to
organize his funds well and also know how to handle the money (Bloom, C.). If the entrepreneur
cannot support himself sufficiently, he will not possess the ability to support a growing business.
However, the most important thing to consider about the new business is the business itself.
Businesses start with people who have something to sell that they believe others want to
buy. Many producers take their hobbies and daily activities and turn them into rewarding
companies. Others see an unmet need in the world and create a product or service to meet the

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demand. Ideas for starting companies can come from anywhere but all entrepreneurs have one
thing in common; they possess insane passion about what they sell. Bob Campbell co-started the
Dirty Laundry Vineyard in Okanagan Valley out of pure passion. He knew that he loved the wine
business and turned his hobby into a successful career (Stafford 16). Another example, Claire
Bloom, founder of the organization End 68 Hours of Hunger, discovered that children in her
town did not have food on the weekends when they went home from school. Bloom started a
program to get food to them which now operates in 42 towns in 6 states (Bloom, C.). She
became fervent about the issue and felt like something needed to happen to solve the problem.
Just like Campbell, Bloom felt eager to turn her vision into a saleable idea. However, even if
someone has a passion for their idea, it does not always work.
In order for an idea to sell successfully, it needs to have demand. If it satisfies a need, it
maintains a better chance of making it as a successful business. Some business owners even look
towards other businesses to find out what needs fixing. They uncover problems in the business
world and use them to make profitable solutions (Ebony 50). Just because the idea might sell to
one person, does not mean it will translate to another. The popular television show Shark Tank
does a very good job of pointing this out. The judges on the show double as the investors of the
entrepreneurs idea or business. They give feedback about whether or not the persons idea could
sell successfully. The idea needs to have relevance and realistic goals, but also unique qualities to
set it apart. If the product or service has already sold somewhere else, an entrepreneur would
need to find a way to make his idea set apart from the other businesses (Bauer 2). A unique
selling proposition, a different way of carrying out the service, or even a clever and creative way
of designing the product can all give the product that unique quality that makes it special. When

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the idea satisfies a need or want, customers enjoy it, and possess unique qualities from the other
similar products; the idea has a very high chance of becoming a successful enterprise.
Many rewards come out of creating a lucrative business. Although 86 percent of small
businesses reach the two-year mark or longer, those businesses did not make it on the first try. In
fact, eight out of ten startup companies fail within their first try (Bauer 4). Many situations can
cause a business to fail when they first go public such as a marketing flaw or a budget misstep. A
common lead to collapse often begins with the composing of too many tasks to handle. This
creates an endless list of jobs and chores for the owners and employees to execute, making them
difficult to accomplish. The manager should use a broad structure of tasks and list them
according to what each person needs to do (Mintzer 46). Providing no incentives for employees
can also lead to collapse. Without perks or incentives, workers often lack motivation to do the
job proficiently. Entrepreneurs hiring should set reasonable expectations for tasks and
consequences for poorly done jobs. Incentives should have realistic outlooks and stay in
proportion to the task (Heizer, Render 429). Miscalculated cost also plays a role in why over half
of small businesses fail within their first five years. According to the Small Business
Administration, most entrepreneurs overestimate income and underestimate the cost to start the
business (Hannon 6). New businesses face hundreds of issues that can lead to destruction within
the first year but good entrepreneurs find and fix the problems before they start.
Knowing how to detect and face challenges that occur in the business world helps prevent
a new company from failing altogether. Experts suggest that the entrepreneur stay calm
throughout the downfall process because it will pass. Most investors will work with the business
owner to help reorganize any funding plans (Ebony 50). Recognizing obstacles before they
happen gives entrepreneurs a head start when fixing the problems. New entrepreneurs need to

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learn how to identify problems and put a halt to them before the business fails. Seeking advice
from those who have started a business before can help ease the process of resolving any
malfunctions. A mentor gives an outside opinion on the situation and can come up with creative
ways to settle the complication at hand. They give advice as to what they did to solve the issues
they faced when starting their business (Hannon 2). Entrepreneurs also need to commit onehundred percent of their time to the start-up company. Even though entrepreneurs typically only
work 30 hours a week in the office, they put all of their time towards improving the business
(Bloom, C.). However, having a dependable business plan to follow makes fixing problems
entirely easier.
A business plan, the first step of creating a business, maps out everything about the
company. It provides detailed descriptions on the product, the customers, the budget, and even all
the utilities needed. The business plan grows with the business and the owner should keep
referring back to it whenever possible. A good plan sets a fixed model for the business. It shows
what the business does and presents specifics on everything (Brad 1). The plan also gives the
entrepreneur a chance to make more choices. It can help decide if they want anything different
such as a co-owner or a different location. They can also look at what they need to spend money
on and how much they need to spend in order to get the business running. Without a business
plan, a company cannot function. It needs the model a plan provides. Yet, some entrepreneurs do
not know how to create a plan for their idea.
An entrepreneur does not need a very complex plan, but it should have enough detail to
map out everything needed. It needs to cover the basics as well as the fine details. A good
business plan should include a summary that explains, in detail, what the company will do. The
requirements for employee skills, selling tactics for the goods, and who makes up the products

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market, each have a section in a common business plan (Hannon 2). The plan should also include
information about the market, advertising, and the competition. This touches on marketing
strategies and how the product will eventually sell. Whether the entrepreneur chooses billboards,
television ads, or cutouts in a newspaper, they need to have a set advertisement strategy in the
overall business plan. Information about the industry also outlines why the entrepreneur shows
interest in the field. On the other hand, management structure and organizational methods show
the owners seriousness about his business (Bauer 7). Touching on competition in the business
plan can increase the companys chance of success. Knowing the competition puts the
entrepreneur ahead because they know the rivals tactics. Competition also determines the
outcome of the product and how much money it makes by letting the customers decide which
product they find more appealing (Ebony 48). Although competition plays a large role in the
financial field, many factors determine how much money the company will acquire.
Before the business takes off, the owner must first accumulate the funds to support it.
Their finances must stay healthy in order to keep the business functioning. The Small Business
Administration recommends setting aside at least one years salary to prepare for difficult times.
One should consider living less large to avoid spending as much as they normally would. In
other words, spend less money in preparation for saving money. Charting a personal budget can
keep the entrepreneur on track and help keep money under control (Hannon 5). One should cut
back on nonessential things like traveling and expensive shopping or dining. Refinancing
housing and other properties shaves down the mortgage rate and rental costs. Downsizing lowers
mortgage totals because the location takes up less space. Whether the entrepreneur chooses to
downsize or not, they should still save enough to cover all the startup costs.

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The entrepreneur should save more money than they think they will need. Most business
owners underestimate their startup costs because they do not analyze what all goes into starting a
business (Hannon 3). The result of a miscalculation of startup money comes from the
entrepreneur not knowing what factors to include in the financial plan. Knowing what to put in
the financial plan can prevent mistakes within the plan. However, some business owners do not
contain the knowledge of what goes in a plan for money and they often forget to include very
important aspects.
In a financial plan, the owner must calculate everything carefully. The entrepreneur needs
to have an accurate estimate of how much money they need to obtain. Some things like
employee wages and rent or mortgage costs need constant evaluation. Other things like cost for
supplies and materials need multiple calculations if anything changes throughout the course of
running the business (Stafford 28). The business owner must raise enough money in order to
cover all requirements. Fortunately, fund accumulation has many sources. Most entrepreneurs
save up their own money from previous work experiences. However, getting from a bank can
help to increase the amount of money saved.
In order to get a loan from a bank for a startup business, the entrepreneur must have
viable credentials. Taking loans out requires a good personal credit score to prove to the bank
that the entrepreneur knows how to handle money in a responsible fashion. One must also
borrow a reasonable amount that can get paid off in a realistic amount of time (Hannon 2). If
someone borrows money from the bank and does not earn the money to pay it off within the next
few years, he or she will end up in debt, which for a blossoming entrepreneur, may lead to
bankruptcy.

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Asking family and friends also serves as a reliable way to obtain funds. Some people find
that asking family or friends for investments eventually turns out to ruin relationships and see it
as rude. However, if done properly, friends and family can provide sufficient funds for the
starting company. The entrepreneur should put the agreement in writing so the investors know
how and when they will get their money back (Hannon 6). At least eighty- seven percent of the
money earned should go towards the business, not personal needs (Carson 98). This allows the
entrepreneur to show the professional side of the business to customers and investors. Using
money for personal use wastes revenue and could eventually become a habit.
Knowing what to spend the money on should assist the entrepreneur with creating a
financial plan. Everything that goes into the business needs careful consideration, including the
factors that commonly get overlooked. Even if it seems like the smallest, most non-important
thing, the entrepreneur must make sure to have money for it. Things often forgotten can include
the mechanical costs of the business such as rent, mortgage, or electrical and water bills.
Business owners tend to pay little attention to the purchasing of furniture and other necessities
such as office supplies (Mintzer 535). In addition to these expenses, the entrepreneur needs to
pay attention to the big picture. One also needs to plan on setting aside money to pay for the
actual product as well. Costs like materials needed to make it and machinery that can produce it
can get expensive. Other things to consider when creating a financial plan include any packaging
costs as well as funds needed to ship out the product and put it into circulation (Carson 121). The
owner of the startup must also spend money on employees. Salary and employee wages can run
up the overall cost of the company. When creating a financial plan, the company owner must
include these in order to successfully calculate the overall costs. Lastly, marketing and

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advertising also take up a large portion of the financial plan and have a crucial part when creating
a business.
Advertisement can play a huge role in how well the business does. The cost depends on
what form of advertising the entrepreneur chooses. Different forms of publicity cost different
amounts due to the size and frequency of the ad. Less costly ads such as Facebook or Instagram
accounts that the public can follow have no charge and businesses create them for free. Other
less expensive forms of advertising include fliers and simple word of mouth. The business will
flourish if enough people hear about it from their friends and coworkers (Bloom, C.). More
costly forms of advertising can include newspaper ads and other types of small ads on the
internet or in magazines. A website can work as a great way to advertise because the public can
access it at any time. However, some websites can get expensive to build and keep running.
Television and radio commercials spread the word about the company very quickly, but again,
cost a lot. Whereas billboards cost a lot of money but very rarely get the viewers awareness
(Heizer, Render 269). Different advertising attracts different kinds of attention and can have a
lasting outcome on which crowd the business will attract.
Advertising helps bring other business in by making the company open to the public.
Different forms of advertising appeal to different types of people, depending on where the
advertisement is (Mintzer 883). For example, people who drive often likely notice and pay
attention to billboards and radio ads because they frequently spend time on the road. Whereas
children and families might notice television and newspaper ads more due to spending the
majority of their time at home. Placing the advertisement in the right place decides what
attention the business will get.

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Many factors go into starting a business. A major franchise can start with just one small
idea. If done correctly, the entrepreneur will flourish in the business world and their idea will
turn into a huge success. In conclusion, those seeking an independent, money making lifestyle
should look toward business management and entrepreneurship because they contain the right
qualities to satisfy someone who wants independence in their work. The work can cause a lot of
stress and running the business takes time and perseverance. But the reward of feeling
accomplished in ones own business and in oneself pays off in the long run, and feels
astonishing. Anyone who has a good idea and the determination enough to make money off of it
can start their own company, it just takes the right set of skills.

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Works Cited
Bauer, Gabrielle. "Dreaming Small." Canadian Business 87.11/12 (2014): 31. MAS Complete.
Web. 26 Feb. 2015.

Brad, I. "Business Plan -- Major Management Tools In Development Of A Business."

Agricultural Management / Lucrari Stiintifice Seria I, Management Agricol16.2 (2014):
214-217. Business Source Complete. Web. 26 Feb 2014.

Bloom, Claire. Personal interview. 6 February 2014.

Carson, Gery. Greatest Entrepreneurs. Lincoln, NE: Carson Services INC., 1999. Print.

"How To Start Your Own Business." Ebony 43.1 (1987): 44. MAS Complete. Web. 26 Feb. 2015.

Gabler, Neal. Walt Disney: The Triumph of the American Imagination. New York: Alfred A.
Knoff, 2006. Print.

Hannon, Kerry. "Map Out Your Next Act." Money 43.8 (2014): 72. MAS Complete. Web. 26
Feb. 2015.

Hannon, Kerry. "Kick-Starting a Business of Your Own." U.S. News & World Report 147.3
(2010): 68. MAS Complete. Web. 26 Feb. 2015.

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Heizer, Jay, and Barry Render. Operations Management. Ed. Tom Tucker, Jennifer Surich.
Upper Saddle River: Prentice Hall, 2001. Print.

Lauren, Ralph. Ralph Lauren. New York: Rizzoli International Publications, 2007. Print.

Mintzer, Rich. "Three Common Mistakes." The Everything Project Management Book. Ed. Kate
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Stafford, Diane. "A Checklist FOR Starting Your OWN Business." Women In Business
63.4 (2011): 16. MAS Complete. Web. 26 Feb. 2015.

Entrepreneurship Concentration. High Point University. HPY, 2015. Web. 26 Feb. 2015.