Setting Up Shop
Many small business owners failed the first or second time and made it on the third. Steve McCann, a business consultant, author, and owner of McCann Research Corporation, an organization dedicated to training businesspeople to reach their maximum potential, speaks from experience. He became a successful businessman on his third try. “I learned a lot from my mistakes,” he says. “I had good business knowledge. What I needed was help setting up the business. What I did differently this time was get help from the Industry Council for Small Business Development (
What these organizations do is offer free business advice in the form of articles and workshops. All of these organizations host workshops and hand out free information about business essentials, from bookkeeping to publicity. These small business associations, as well as companies like McCann's, work to assist future business owners on how to set up an office.
Another avenue to take advantage of is your school's job placement office. In addition to posting entry-level jobs, most job placement offices are staffed with professionals who will advise you about everything from setting up shop to licensing (if you need them). This service is free to graduates and current students, so take advantage of it.
Government agencies such as the Small Business Administration, as well as school guidance counselors, job counseling centers, and private human resources firms, all share information about financing. You will have to pay a fee to a private company, but you will get a one-on-one service that is tailor-made for you. The counselors and government offices offer similar services, but you will have to do a lot more research on your own.
Whether you are going to work as a consultant or as a shop owner or owner of a veterinary practice, you will need capital. If you have a nest egg that you saved for this venture, you are quite lucky. Most graduates, however, come out of grad school in debt. Their top priority is to get established and pay back those student loans.
Here are other ways to raise funds for your business:
Before you approach anyone for money, create a strong business plan that you can show to potential funders.
Sit down with a staff member at a local Small Business Administration office to discuss the types of loans available and how much you will need to start and maintain your business.
Borrow from family and friends.
Get a loan from your bank. If you don't have a good credit history, and have lots of debt (college loans), it is likely that banks will turn you down. If you own a home, you might be able to get a second mortgage.
Look up Small Business Investment Companies in your local phone book, and make an appointment to talk to one of their advisers. Before signing anything, get references from others who used these agencies. It's a good idea to speak to an accountant, business lawyer, and financial adviser if you are unsure about the company.
When borrowing money, look for the lowest interest rates, and work out a reasonable payment schedule — one that won't put you in further debt. You might also consider working for someone first before going it alone. This way you can gain on-the-job experience and start to pay back your student loans.
