Passion Alone Is Not Enough to Open a Business

In my last blog I introduced to you all ?Ms Walters of Resurgent Cosmetics. During the interview she mentioned her passion for what she does and though I am quite impressed by her various techniques and skills it made me wonder, is passion alone enough? I did some research and came across this article. I hope that it will answer some of your questions as it did mine. you can click on the link to read the entire article itself as I have only highlighted a portion of it.

http://www.entrepreneur.com/article/237746?newsletter=true


"Small-business owners usually start a company because they have a passion for a

particular product or service. However, people should not open a bakery just because they love baking cakes. If you love baking, get a job as a baker.

The minute you open a bakery, you’ll discover that there is a lot more to it than German chocolate and red velvet. You’ll have to wait on customers, keep the books, order inventory and sweep the floors. Open a bakery because you want to run a business and you happen to have a great cake recipe.

There are many functions associated with running a business. Before you quit your day job, make sure that you know how each of these functions is going to be handled.

The first step for most entrepreneurs is to sell something. Put in place the minimum amount of infrastructure that you can get by with and focus on generating revenue. Many new businesses fail because they simply cannot generate enough revenue to sustain themselves. Test the viability of your business as quickly and as inexpensively as possible.

While we recommend minimum infrastructure during this start up phase, there are some things you will need. For example, in many counties, you’ll need a business license. You’ll want to keep track of the revenue you generate and all of your business expenses for filing taxes.

To minimize expense, you’ll want to handle as much of this as you can personally in the beginning. However, it’s wise to reach out to people who have expertise you lack. Initially, you should minimize the infrastructure you build, do as much of the work as you can yourself and outsource those items where you lack expertise. You are in effect buying yourself more time that you can invest in other aspects of the business. The investment is a wise one when the value you create by spending your time in these aspects of the business exceeds what you have to pay to make this time for yourself."