Entrepreneurial

Where does THAT entrepreneurial spirit come from? How does it affect you?

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Entrepreneurship is a rewarding pursuit. It is vaunted by many as the height of accomplishment. Choosing successful investments and guiding projects with potential into their own as full-fledged businesses is a fantastic challenge that can pay big dividends.

However, there are high barriers to entry. You need at least a little money to start, and you need to know what you’re doing and who to talk to. Whether or not you have the golden spoon, there are valuable insights that can help you reach your destination. So where does your entrepreneurial spirit come from? Is it…

In the Blood?

Some enter entrepreneurship through their family ties. When you come from a family of businessmen and entrepreneurs, you tend to have access to two things: money and connections. Much of entrepreneurship revolves around knowing who to talk to, how and when, and then having the money to act on what you’ve talked about.

It may sound almost obvious, but having family members in an industry makes a big difference for this. Even if they do not themselves invest in businesses, learning a business passively as you grow up within a family can do a lot to give you the leverage you need to get started.

In the Class?

Some pursue education directly as a means to learn about business. Steve Wynn is a fantastic example of someone who has leveraged an education into a career in entrepreneurship. Education isn’t a mark of skill or a guarantee of success, but individuals armed with knowledge about entrepreneurship and how it works tend to fair better.

The key is in understanding the history of entrepreneurship and how to identify things that will work, as well as filtering one’s own emotional responses. While we are frequently told to “go with our gut,” the truth is that this can be a major liability in entrepreneurship.

Those that say they make decisions purely on instinct may be misjudging their own analytical minds. Education can help entrepreneurs to make much more informed, intellectual decisions that will not be vulnerable to the psychological pull associated with a strong presentation and a pleasant smile.

In your personality?

However, some individuals don’t have any particular business background. They simply use their paycheck from their usual nine-to-five job in as a resource to bootstrap their way to entrepreneurial success. This is by and large the hardest way to get yourself into entrepreneurship, but there are plenty of examples of those that have made it. The world wide web has become an important resource for individuals like this. While it isn’t a magic bullet, there are a number of resources that allow individuals to run much more successful campaigns.

Kickstarter is a great example of this, and crowdfunding in general. Aspiring entrepreneurs can pick projects not to back through the crowdfunding system exclusively, but in other ways, offering what support they can and reaching out. By making it easier for would-be business owners to get into business, it gets easier for entrepreneurs to pick their marks and strike out to make connections.

Does it matter where?

Entrepreneurship is always a challenge, but it isn’t as mystical as it can sometimes seem from the outside. As with most industries, the hardest part is getting started. Once you have an idea of what you’re looking at in the industry, picking yourself up and going for it becomes much more possible, and there’s nearly nothing to stop you no matter what your background when you get momentum.

Kiva Lending: Supporting Entrepreneurs

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Here and at PurelyCoffeeBeans.com, I’ve been supporting lending to individuals involved in coffee through Kiva. Today I received a timely newsletter that reminded me I had extra credit to lend, so I chose to lend to this lady and her friend/partner in coffee (even though I was only backfilling the loan).

It’s nice to be able to express support for such entrepreneurs even though it’s after the fact! While you can read more about Malakiah’s coffee shop, vision and entrepreneurship at Kiva, I’ll post an introduction here.

Opening a coffee shop has been a long time dream for Malakiah and her business partner April. From the tantalizing aroma of a fresh hand-poured coffee to the social buzz found at local coffee shops, the full coffee experience has always excited them. (Kiva)

If you do get the chance, you can visit them in at BrokeGirls Coffee Shop, 3562 Adams Ave, San Diego, California 92116. I only hope one day, I get the chance to visit.

San Diego, California News Station – KFMB Channel 8 – cbs8.com

If you’re interested in supporting Kiva, entrpreneurs or just coffee, consider signing up with Kiva via this link.

Leasing Commercial Office and Retail Space for the Budding Entrepreneur

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There is a lot of opportunity in investing right now, especially since we’re at the beginning of an upturn in the economy. So, if you are setting up your new business, you will undoubtedly need to lease space, whether you’re opening a retail space or office.

It’s just so much more commercially viable if you can plough your capital into the business, not the purchase of the units. For start-up businesses, the cost of renting vs. purchasing office space offers tremendous advantages in saving precious start-up capital. However, you’ll need to look into leasing your space.

Property Managers

Professional property managers specialize in handling residential and commercial real estate which businesses can lease as office or retail space at affordable rates. Commercial properties are leased on specific terms and conditions that are stipulated in contracts provided by the property management firms. You will need to sign one if you wish to lease space:

Retail Space

Stores need to open up in attractive locations that can draw in customers. You’ll find commercial retail space is available for rent through property management companies. Prime retail locations are typically situated inside shopping malls, at busy shopping plazas, and even in popular high street venues. Commercial property managers also usually charge premium fees per square foot for the most desirable retail locations.

Office Space

Office spaces can command quite a premium, depending on its location in urban or non-urban environments. Additionally, you will need to look out for such additional aspects: public transport to the location, parking lots (esp. if you have lots of workers), restaurants and other infrastructure for your staff, location in respect of your suppliers, deliverers and your customers. Are you, for example, near an interstate or railway station?

The Lease…

Once you have completed the crucial task of identifying a business location, the next step is to negotiate a lease. Considering this is often one of the biggest expenses you will have, do your homework before you lock yourself into anything. For starters, do not assume a commercial lease is the same thing as a residential lease.

… and its conditions

General maintenance and care of the property will likely be your responsibility. You will not have the luxury of calling up the landlord to fix your air conditioning units. But commercial property managers may be responsible for all exterior maintenance of an office building. Snow removal and landscaping are done as needed by a management company. Similarly, the common areas such as the lobby or lounge will need to be maintained by the management (if the property is shared by others).

Also, it may be challenging to find a 1-year lease. If you cannot, then it becomes increasingly important to ensure you understand the lease in detail and are fully aware of all potential fees. The last thing you want to do is create a budget which later on is inaccurate due to surprise costs.

Along those lines, consider obtaining legal help. If this is your first time leasing commercial space, then save the learning curve for a less significant expense.

Financial Advantages

While a seasoned and established business owner may choose to consider purchasing real estate, that may not be an affordable option for someone just starting out. By leasing space from a company like Hi-Reit (which leases office and retail space in the United States of America) you are not tied to a mortgage.

Perhaps your monthly rent will even qualify as a tax deductible business expense. There is the additional benefit of not tying up your money in ownership, but rather investing it into the launching of your business.

The Exit

Regardless of the successes or struggles with your business, make sure you have an exit strategy. Without knowing what the future holds, you would be wise to insist upon defining a termination process. If you need to move or close up shop, you want to have minimal constraints to do so. Remember, your time to negotiate is before you sign the contract, not after.

Have you had problems starting up your company because you couldn’t find a location? I know we had terrible trouble trying to find a property that was zoned so we could get the business licenses needed.