Take Your Business For A Test Drive

Today's new entrepreneur is often an experienced supervisor, manager or executive. Many are specialists in one area of business such as customer service, purchasing, sales support or accounting. But few have ever had the responsibility for researching, planning and implementing every detail of a new business creation.

Many functions previously performed by corporate staff people such as market research, personnel, data processing and financial planning will now have to provided by the new, solo business owner. How does one go about learning how to do all the jobs that will he required?

The answer is through classroom training. You may ask yourself -- at age 40 an I going to have to return to college? Rushing through textbooks, cramming for mid-term exams, sweating out term papers? No Way!

We are happy to report that a new, street-smart, highly usable type of training is available throughout the United States for prospective entrepreneurs. This is training by experienced entrepreneurs presenting tips and techniques that have worked for them in growing their small businesses, offered to you in easy-to-follow segments. No grades required! Just some concentrated work outside of class.

How Do I Know If Training Can Help?

Successful entrepreneurs are self-starters, eager to put their ideas into action. But the urge to "ready, fire, aim" can cause problems down the road. No matter how technically competent you are, you will always run into problems your first year in business that you did not expect. If you have no training or knowledge in the problem area it can throw your whole business off track. This "lone ranger" attitude can also isolate you from sources of professional help, often until it is too late. There are very few problems a new business can't handle if the owner is properly trained and seeks expert counsel when necessary.

Two primary goals of a well-run entrepreneurial training program should be to provide you with a good foundation of knowledge in every management skill necessary to run a small business; and to connect you to other new entrepreneurs as well as experienced small business people.

In training over 1000 new entrepreneurs, I have encountered people from all kinds of backgrounds, in all different stages of business development. I would characterize them as follows:

1. I heard it through the grapevine: These are individuals who have heard, seen or read that you can make a lot of money being your own boss. They are unhappy with their jobs, often because they aren't making the money they think they should, but they haven't really focused on what they could sell to start their own business.
   
   
2. The best thing since sliced bread: These people have done some research into a specific business idea, often something related to their current job. They may have approached others in the business to learn more how it is done. They haven't, however, really started a written plan and may not have broad business experience.
   
   
3. Where's the money: These folks have a well-researched business idea, backed with a partial or complete written business plan who are eager to know which bank or investor is ready to lend them money. They are ready to move ahead.

All three of these groups of people can benefit from classroom training.

Stage One

Individuals who have begun to think that self-employment might be an attractive career move will benefit greatly by seeing all that goes into conceptualizing, researching and planning a new business. They will receive an advance view of the psychological, physical and financial demands of being on your own. They will understand the risks and rewards of self-employment and the personal sacrifices to be made. And in most cases they will have invested less than $500 and a few evenings to gain this insight. If after the class they decide that self-employment is not for them, they will have saved a tremendous amount of money.

Stage Two

For those people with a specific idea and a pretty clear sense of how self-employment will change their lives, a entrepreneurial training class will provide the skills necessary to create an outstanding individual written plan of action, effective for internal control or for non-traditional borrowing, such as from family members. In my own case I prepared a 35-page business plan before launching my training company. I gave one of the copies to my uncle who didn't say anything about it for several months. Finally I reached a point where I needed more cash than I had on hand and asked for his help. He responded positively, he said, because he saw that I had a plan and that I had successfully brought it to life. When you hit upon an idea that seems to combine your talents and interests with market demand you want move ahead -- sometimes without having reliable systems in place. A good entrepreneurial training program shows you how to prepare.

Stage Three

Entrepreneurs who have done much of the written business planning already may ask -- what good is classroom training for me? Formal training serves several useful functions. First, it allows you to check that you have performed all the key organizational tasks and that you haven't forgotten to set up any key operating systems. Second, it allows you to recheck the assumptions behind your marketing and financial plans and projections to see if they are realistic. You have the advantage of a live instructor to serve as counselor and critic of your plans. Third, you may learn new techniques from the instructor or your classmates that can make a very positive difference in how you launch your business.

What to Expect From Training

There are a number of variations in how entrepreneurial training is presented. The primary versions are as follows:

1. An all-day "everything you need to know" seminar that spends 30-45 minutes on each main topic such as business plans, financial basics, marketing, etc. One or more individuals presents the workshop. Very affordable at $25 - $40 per person. Good as an overview particularly for the individual not yet convinced they want to pursue self-employment. This format is used by the Small Business Administration's Service Corps of Retired Executives (SCORE) which also provides individual counseling.
   
   
2. A series of presentations by local business people organized into a multi-week schedule. It is common to use an accountant for the bookkeeping classes, a banker for the financial planning class, a marketing consultant for the marketing planning classes, etc. While each of these specialists excels in their business concentration, these programs can sometimes lose focus because there is no overall class presentation plan used. Also being a successful small business person does not necessarily make you an effective classroom trainer. These classes area good way to meet potential advisors and pick up a few tips. At $40 - $50 per class they are affordable and allow you to take classes at your own pace. If you wish to learn how to develop a complete written business plan, this type of class may leave you dissatisfied, Many high-school based adult education programs and some community colleges offer this style of training.
   
   
3. A multi-week (usually 6-10 weeks) training program aimed at providing all the essential organizational steps as well as all key management skills necessary to prepare a comprehensive business plan. These programs use a coordinated class plan, a single set of training materials, often have a lead instructor and use teachers who have received training in how to present the classes most effectively. Often called "track programs" this type of entrepreneurial training has a definite starting point and ending point. Individual classes usually cannot be taken out of sequence. Because of the greater number of classroom hours (30-36 hours) these programs cost between $300 and $395 per person. This type of program is well suited to the individual who has a specific business idea with related experience and a strong determination to become self-employed.

How to Evaluate What You Are Getting

How do you evaluate the quality of the training you have received? Your satisfaction will be heavily influenced by the personality of the instructors, as well as the quality of the training materials, Some keys to watch for include:

1. Instructors:
   • Do they explain the objectives of each class?
   • Are class handouts easily understood?
   • Do they use audio-visual to enhance learning?
   • Do they seem to be able answer most questions? If not, do they offer to get back to you with an answer?
   • Do they use examples and case studies to illustrate techniques?
   • Do they refer you to other resources?
2. Materials:
   • Are they well organized?
   • Do they present techniques in an easily understood manner?
   • Do they provide checklists and blank forms?
   • Do they coordinate skills training and business planning?
   • Do they offer resource tips?
   • Do they seem like something you can use right away?

The more professionally run programs request you to complete a detailed evaluation of the instructor and the course organization. The most effective programs also tell you where to go for additional help after you leave the classroom. Most students are employed full-time while taking the training program and it is difficult for them to do much of the written business planning while they are in the class. Therefore, you should ask yourself when considering a program: "How well will it prepare me to complete my business plan on my own?

The formal education of your instructor is not as important as their success on the street." Have they successfully launched and run a small business? Do they sound like they would know how to show you their secrets? Do they welcome your input during class and go out of their way to answer your questions?

About the Author

Jeff Williams is a 50+ entrepreneur who worked for big business for years, until he decided to take his career in his own hands by establishing his practice as a business coach and trainer. Now Jeff offers you the information he had to learn the hard way -- and he shares it with you in his Ultimate Boomer Business Start-Up Guide.