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    7 tips for becoming your own boss in 2012

    By Tom Musbach | Yahoo! Small Business Advisor – Tue, Dec 20, 2011 4:58 PM EST

    The New Year often motivates people to make a big change in their work lives. But with the scarcity of new jobs projected to continue into 2012, making a move to become your own boss might be a more worthwhile resolution than in years past.

    Of course starting a new business requires a great deal more work than applying for a new job, and the effort usually involves much risk. But great rewards don't come without risk or great effort.

    "There's never a guarantee for a new product or company," said Pat Mayfield, executive director of the Golden Gate Business Association in San Francisco. "However, many successful companies, such as General Electric, Motorola, Hewlett-Packard, and Paypal were started during down economies."

    Experts reveal key business-starting tips

    Several entrepreneurs who've seen success in creating a business shared these important tips for getting started:

    1. Start your business while you are still working, if you can. "It takes 18-36 months on average to break even, let alone replace your corporate salary," said Melinda F. Emerson, the "SmallBizLady" and author of Become Your Own Boss in 12 Months.

    2. Have passion for your company and your product. "It will help to get through the bad times and thrill you during the good times," said Mayfield.

    3. Do your homework. "You might have a great idea for a business but success is going to be built on what other people think," said Gene Fairbrother, lead business advisor for National Association for the Self-Employed. "For any startup it is critical that they do some market research to determine if they can really generate customers who will generate revenues. A common cause for a business to fail is that the person starting the business is in the minority of people who thought it was a good idea."

    4. Only listen to those with experience. "When you decide to become an entrepreneur, you're likely to run into some opposition," said Matt Toren, co-author of Small Business, Big Vision. "Unfortunately, the push-back often comes from those whose opinions matter most to you -- your family and friends. It will help if you remember to only listen to people who have done what you want to do."

    5. Be passionate about customer service. "People buy from people they like, and in the early stages of a new business with a limited marketing budget, word of mouth is key," said Rene Shimada Siegel, president and founder of High Tech Connect.  "Make every customer feel like they are your only customer. Under-promise and over-deliver. Listen carefully so you can take away their pain. Fix it quickly (for free) if it's not perfect. They will never forget how you made them feel."

    6. Engage your circle of influence as much as possible. "Your friends, family, employees and acquaintances can be your best marketers and promoters," said Robb Fleischer, chief operating officer of AMSI Real Estate Services in San Francisco. "You'll want people close to you who specialize in the aspects of your business that you're not as passionate about, or requires a different skill-set, such as attorneys and accountants."

    7. Don't try to raise capital; bootstrap instead. "It is nearly impossible for startups to obtain bank loans," said Scott Gerber, founder of the Young Entrepreneur Council. "Angels and venture capitalists -- and even friends and family in many cases -- want to see your business in action and succeeding before forking over a check. Bottom line: Launch a business you can start with the resources you have at your disposal, bootstrap and cut back on anything that isn't essential, and prove your business works before you seek any investment."

    2012: Year of opportunity?

    Most economists expect today's sluggish economy to continue through the next year, and starting a business in this climate will be risky. A recent Yahoo! Small Business survey found a third of small business owners have not been able to invest to grow their companies due to the recession, and many others shut down.

    Nonetheless, some experts say the outlook is positive for new entrepreneurs.

    "Bad [economic] times are the best times to start a business because they're the most likely times when people are open to change and new vendors," said Emerson.

    "Any year is a good year to start a business," said Adam Toren, the other co-author of Small Business, Big Vision. "Outside forces, like economic conditions and changes in the marketplace, will obviously affect business owners, but they have infinitely more options to respond to those challenges than someone who's laid off from a job because of them."

    Gerber, who stressed that entrepreneurs are problem solvers, was the most bullish.

    "We are in the age of the entrepreneur," he said. "The new economy has forever changed the social norms of yesteryear, so next year is as good a time as any to join the entrepreneurial revolution."


    Read more on Yahoo! Small Business Advisor:

    Side businesses you can start for extra cash

    Entrepreneurial impulse thrives in older Americans

    Notable startups that failed in 2011

    See all articles from Small Business Advisor
     

    16 comments

    • Fridah
      Fridah  •  2 months ago
      very good ideas,i want to try them
    • guy
      guy  •  2 months ago
      I think the one piece of advice that should also be here is that your clients determine your working hours , not you. Many new start ups think they will work less and it usually takes a year or 2 to find out that they need to be open when the customer can visit there store. I have wanted to visit many stores that I have seen starting, but they are always closed when I am off work and not open on the weekends. They usually fail or learn to adjust there hours.
    • B
      B  •  2 months ago
      I have been self employed for 16 years and will not go back to working for someone else. I can tell you that most people can not work for themselfs, they are far too lazy. If I am awake I am at work. This life is not for everyone but for some like me it just fits.
    • Tim P
      Tim P  •  2 months ago
      My wife and I started our own business about 2 years ago...in the heart of the recession. We researched widely and decided to begin building our own asset, rather than continuing to work at building someone elses fortunes. It has been one of the best decisions we've made. Google teamskintastic to see what we are doing. Contrary to what this article says though, we were achieving free cash flow (ie, fully paid off investment and recurring income greater than expenses) after only a few months, and rewared ourselves with a trip to Hawaii to close our 1st year. Now we are helping others do the same, and that is proving to more rewarding than anything I've ever done before in life.
    • Lynn
      Lynn  •  2 months ago
      My husband and I just visited a brand new Thai Restaurant. I was so excited that one finally opened close to our house, that is until we went there. The food was OK, but right off the bat they didn't have the first thing my husband ordered. It was on the menu, but they were OUT. That is so not good. And after we gave our order, the waiter came over to double check and then triple check our order as if he was confused by it which I found very odd. I ordered white rice with my meal and they gave me the tiniest portion of rice I've ever seen which I quickly finished. And the waiter never asked if I wanted more rice. AND...prior to dining there the first time we called them to ask if they sold gift certificates so we could purchase one for a friend, the young girl who answered the phone said, sorry, no we don't and immediately hung the phone up. We went on a Friday night just before Christmas and other than the table next to us, we were the only patrons in there. This place is located in a huge shopping center next to a major mall and I think that fact that it was so empty speaks volumes about their chances of staying open . My guess is they will be closed in 2 months or less.
    • Ruth
      Ruth  •  2 months ago
      last year, i started in my own accessories retail business.
      there are three things i lived by.

      one is research and learn. research about advises online from experts. research about your product in all aspect. research about your market.

      two is business time is business time. do not mix business time with other things. concentrate on it. even a few hours or even just a few minutes.

      three is record. record and organize. all expenses and all products in-stock or sold. record even a single centavo. you'll know in your ledger if your business' profits exceeds your cost of operations.

      i am now earning an average of five hundred pesos a day with just 2 hours time with most days of the week. it's small but it's a good start. :')
    • Juggernaut
      Juggernaut  •  2 months ago
      Yup never listen to the people that constantly say, "you cant do that". They dont know whats possible because they never tried. Try this people Google Majestic Stages for great party items!
    • Tracy
      Tracy  •  2 months ago
      sometime you start one kind of service, but then the customer is the one who shape your business base on your service and their input We need to listen to each other and then you find that you think this service is needed , but the customers want this attached to what you offer and you can do so. Business owners need to be open base on request for certain services AND CAN ATTACHED MORE SERVICES.
    • WALTER
      WALTER  •  2 months ago
      Success is based on 1/3 business sense, 1/3 marketing, and 1/3 ability to perform trade or profession. You must be strong in at least 2.
    • george
      george  •  2 months ago
      Get a state job with tons of bennies and easy work. I am self employed (32 years) and it's tough.
    • Enok
      Enok  •  2 months ago
      si es posible llamame al 786 897 7416
    • Enok
      Enok  •  2 months ago
      of course is possible,just call me at 786 897 7416
    • arthur lambert
      arthur lambert  •  2 months ago
      win the lotto
    • eddie j
      eddie j  •  2 months ago
      You will never work harder than when you work for yourself. That's why most people can't do it. If you want to work an 8 hour day and go home, having your own business is not for you. Also, if you have to have that structured environment of the traditional workplace, then having your own business is not for you. It takes discipline, sometimes working 7 days a week and the buck stops with you. You have to be responsible for everything, including your own accounting, insurance, benefits, taxes, etc...The rewards? You can make more money than any employer will EVER pay you. You have a tremendous amount of personal freedom. But it's not for everyone. I've been doing it for 15 years. If you can get through the first 5 years, you'll make it. Sadly, most don't.
    • Cris n
      Cris n  •  2 months ago
      its very good ideas i read ilike ur advices
    • guy
      guy  •  2 months ago
      Jus Do It...
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