by Melissa Chaika Sobel
Friday, May 20, 2011
provided by
Yahoo Small Business
While economists continue to debate whether we're truly rising out of the recession or entering into a double-dip, one thing is clear: The employment sector is still in a slump. The strongest job growth seems to be in the small business sector, which has accounted for 65% (or 9.8 million) of the net new private sector jobs created in the US between 1993 and 2009, according to the Small Business Administration. The small business sector has actually seen a surge in activity: Research from the Kauffman Foundation indicates that the number of American businesses created in 2009 marked a 14-year high, surpassing the number of businesses created during the 1999 and 2000 high-tech boom.
If you're thinking about starting or joining a small business in this economy, here are seven traps to avoid:
1. Don't let the economy get you down. While many workers view precarious economic conditions as a time to hunker down in their jobs and try to weather the economic storm, others see it as a window of opportunity. Starting a business in a weak economic environment can have several clear benefits: The cost of doing business can decline because suppliers and partners may be more willing to negotiate on pricing and conditions, and the opportunity cost of lost income from a traditional job may be lower. Access to capital is also improving: The Small Business Administration's Office of Advocacy reports that in mid-2010 commercial banks started easing lending conditions while levels of venture capital investments increased.
Of course, there are also precautions to starting a business in a weak economy: Discretionary spending is down, so businesses selling goods or services that appeal to budget-minded customers may have an easier time gaining new customers in this economy than sellers of full-priced luxury items. Similarly, do-it-yourself services and low-cost substitutes may fare better than full-service or premium alternatives. For example, self-service storage and organizational retailer Organize.com saw a greater than 10% increase in year-over-year sales from 2007 to 2008 and again in 2009. Explains Terry Shearer, CEO of Organize.com, "Even in a recession, people want to improve their homes, but they want to do it inexpensively. Buying good home products from a reasonably priced online retailer is a much less expensive way to improve your home than, say, hiring a construction team or designer."
2. Don't think that an idea equals a plan. Too often people start businesses with a general notion of what they want to accomplish but lack a solid, well-conceived plan. While a business plan is always important, in a tough economy, it's even more vital to think critically about your product or service, customer acquisition strategy, pricing and promotion plans, and key logistics like inventory management and fulfillment. Similarly, it's important to be very clear about your unique business angle and your differentiation from competitors.
3. Don't be an island. Though entrepreneurs tend to be well versed in a wide variety of areas, even the most skilled entrepreneur cannot expect to be an expert in every aspect of business. From IT issues like network maintenance and website development, to marketing and customer acquisition, to accounting, payroll and legal services, there's too much for most people to handle alone. Have a clear sense of your own strengths, and surround yourself with the right partners and advisors for the remaining tasks.
4. Don't expose yourself to unnecessary financial stress. Starting a business can be extremely costly, both in terms of lost income from a full-time job and in terms of capital investments — but it doesn't have to be. Don't quit your day job too soon, seek outside investors in addition to your own personal assets, and consider lower-cost options for starting your business. For example, if you're going into a retail business, make sure you consider both brick and mortar and online business models, given the considerable difference in capital requirements for each model.
5. If you build it, they may not come. Having a great idea and even a great skill and product are very useful in starting a business, but you also need to have a carefully thought-through marketing plan. Customers won't just come to you. You need to think through all of the tactics at your disposal — from newspaper and radio advertising, to online marketing, to good old-fashioned referrals — to consider how to acquire customers and then turn those customers into repeat buyers.
6. Don't launch without specific goals in mind. Starting a business can be as simple as turning your hobby into an online store or as complicated as building a capital-intensive new product or service requiring research and development. In any scenario, it's important to map out clear goals for yourself and set up times to reassess your progress. Consider setting targets for product availability, establishments of key partnerships and vendor relationships, sales levels, and profitability levels. You don't want to wait until you're two years into a business to discover that you need to make fundamental shifts in your strategy that could have been identified 18 months earlier. Set regular, realistic goals and review periods to learn from your experiences and make changes as needed.
7. Don't be afraid to fail. Many of the most successful entrepreneurs failed before they were successful, and most have had significant failures along their paths to success. Henry Ford failed multiple times before finally launching his successful car company, and Bill Gates and Paul Allen formed a firm called Traf-O-Data before going on to create Microsoft.
Fortunately, more new businesses succeed than fail. According to the Census Bureau, nearly 7 in 10 new small businesses survive at least two years. What's most important isn't whether you succeed or fail in your intended milestones, but rather that you assess and learn from your actions along the way so that no mistake — or spectacular success — takes place in vain
4 January 2011 Last updated at 04:18 GMT 
West African leaders want to convince Laurent Gbagbo (left) to cede power
The comments came as a delegation of African leaders met Mr Gbagbo in a fresh attempt to persuade him to step down following disputed elections.
West African states have said they will remove him by force if he does not.
The UN and the African Union regard Mr Gbagbo's rival, Alassane Ouattara, as the winner of the 28 November election.
Leaders Boni Yayi from Benin, Pedro Pires from Cape Verde and Ernest Bai Koroma from Sierra Leone - who represent the Economic Community of West African States (Ecowas) - were due to make an amnesty offer to Mr Gbagbo if he quit. They were joined for this trip by Kenyan Prime Minister Raila Odinga, representing the African Union.
They were received by a smiling Mr Gbagbo, AFP news agency said.
Afterwards, Mr Odinga described the meeting as "useful", and Mr Yayi said they would return. They then went on to see Mr Ouattara.
After their meeting, Mr Ouattara said that the dialogue was over.
"Everything has been done so that we could find a solution through diplomacy and dialogue," he said.
"Since that is not the case, perhaps Laurent Gbagbo will have a change of heart. If not, then Ecowas will need to use all the means at its disposal including the use of legitimate force so that the president that was elected can assume his functions."
It is the diplomats' second visit in less than a week. Last Tuesday they flew to Abidjan, Ivory Coast's commercial capital, but failed to convince Mr Gbagbo to stand down.
Guarantees Sierra Leone's Information Minister, Ibrahim Ben-Kargbo, said the leaders would tell Mr Gbagbo to step down and did not intend to negotiate with him.
But a source within the African delegation told the BBC that the incumbent would be offered a legal amnesty, as well as a guarantee that his financial assets would be secure if he left office.
"But any opportunity to do that is an opportunity that is rapidly closing because of what is happening on the ground, and every indication we have at this point is that he's digging in."
A spokesman for Mr Gbagbo, Ohoupa Sessegnon, told the BBC any offer of an amnesty would be rejected.
"It's not about Laurent Gbagbo seeking some sort of offer. It's about Laurent Gbagbo having won the elections in the Cote D'Ivoire," Mr Sessegnon told the BBC. "Now it appears that the opposition supported by the French and their allies do not want to accept that."
The UN says some 200 people have been killed or have disappeared in the past month - mostly supporters of Mr Ouattara.
UN peacekeepers in the country say security forces have twice blocked them from visiting the site of one of two alleged mass graves.
The UN has also expressed concern that some of the homes of opponents to Mr Gbagbo have been marked to identify the ethnicity of their occupants.
The Gbagbo camp has denied sanctioning abuses.
UN peacekeepers are protecting Mr Ouattara, who is holed up at a hotel in Abidjan. Mr Gbagbo has called on the 10,000-strong UN force to leave the country.
The election was intended to reunify Ivory Coast - the world's leading cocoa producer - which has been divided since a 2002 conflict.
Mr Ouattara was initially proclaimed the winner by the country's election commission - a verdict backed by the UN, which helped organise the poll.
But the Constitutional Council, headed by an ally of Mr Gbagbo, said he had won, citing irregularities in the north which is controlled by former rebels supporting Mr Ouattara.
Both men have been sworn in as president.
US offers Ivory Coast's Laurent Gbagbo 'dignified exit'
West African leaders want to convince Laurent Gbagbo (left) to cede power Incumbent Ivory Coast President Laurent Gbagbo could be offered refuge in the US as a means to end the country's political crisis, US officials say.
Washington could help Mr Gbagbo make a "dignified exit", but this opportunity was "rapidly closing", they said.The comments came as a delegation of African leaders met Mr Gbagbo in a fresh attempt to persuade him to step down following disputed elections.
West African states have said they will remove him by force if he does not.
The UN and the African Union regard Mr Gbagbo's rival, Alassane Ouattara, as the winner of the 28 November election.
Leaders Boni Yayi from Benin, Pedro Pires from Cape Verde and Ernest Bai Koroma from Sierra Leone - who represent the Economic Community of West African States (Ecowas) - were due to make an amnesty offer to Mr Gbagbo if he quit. They were joined for this trip by Kenyan Prime Minister Raila Odinga, representing the African Union.
They were received by a smiling Mr Gbagbo, AFP news agency said.
After their meeting, Mr Ouattara said that the dialogue was over.
"Everything has been done so that we could find a solution through diplomacy and dialogue," he said.
"Since that is not the case, perhaps Laurent Gbagbo will have a change of heart. If not, then Ecowas will need to use all the means at its disposal including the use of legitimate force so that the president that was elected can assume his functions."
It is the diplomats' second visit in less than a week. Last Tuesday they flew to Abidjan, Ivory Coast's commercial capital, but failed to convince Mr Gbagbo to stand down.
Guarantees Sierra Leone's Information Minister, Ibrahim Ben-Kargbo, said the leaders would tell Mr Gbagbo to step down and did not intend to negotiate with him.
But a source within the African delegation told the BBC that the incumbent would be offered a legal amnesty, as well as a guarantee that his financial assets would be secure if he left office.
Continue reading the main story 
Few observers have any hope that a compromise can be found that would see Laurent Gbagbo hand over power to his rival, Alassane Ouattara.
The Ecowas mission will almost certainly go over the various deals that have been offered for exile and amnesty but, in his New Year message, Mr Gbagbo said he would not cede power and insisted that he was the rightfully elected president.
He still has control of state television and the public backing of the army, but Mr Ouattara has the support of most West African leaders, who have already told the West African central bank to give him control over the state accounts.
The leaders will report back to the current chairman of the Ecowas region, Nigerian President Goodluck Jonathan, on Tuesday, at which point a decision will be made on the way forward.
Analysis
The Ecowas mission will almost certainly go over the various deals that have been offered for exile and amnesty but, in his New Year message, Mr Gbagbo said he would not cede power and insisted that he was the rightfully elected president.
He still has control of state television and the public backing of the army, but Mr Ouattara has the support of most West African leaders, who have already told the West African central bank to give him control over the state accounts.
The leaders will report back to the current chairman of the Ecowas region, Nigerian President Goodluck Jonathan, on Tuesday, at which point a decision will be made on the way forward.
Later, unnamed US officials said Mr Gbagbo might be allowed to travel to the US, and that he had relatives in the state of Georgia.
"We want to see him leave. If he wishes to come here, we of course would entertain that as a means of resolving the current situation," a senior State Department official told AFP news agency."But any opportunity to do that is an opportunity that is rapidly closing because of what is happening on the ground, and every indication we have at this point is that he's digging in."
A spokesman for Mr Gbagbo, Ohoupa Sessegnon, told the BBC any offer of an amnesty would be rejected.
"It's not about Laurent Gbagbo seeking some sort of offer. It's about Laurent Gbagbo having won the elections in the Cote D'Ivoire," Mr Sessegnon told the BBC. "Now it appears that the opposition supported by the French and their allies do not want to accept that."
The UN says some 200 people have been killed or have disappeared in the past month - mostly supporters of Mr Ouattara.
UN peacekeepers in the country say security forces have twice blocked them from visiting the site of one of two alleged mass graves.
The UN has also expressed concern that some of the homes of opponents to Mr Gbagbo have been marked to identify the ethnicity of their occupants.
The Gbagbo camp has denied sanctioning abuses.
UN peacekeepers are protecting Mr Ouattara, who is holed up at a hotel in Abidjan. Mr Gbagbo has called on the 10,000-strong UN force to leave the country.
The election was intended to reunify Ivory Coast - the world's leading cocoa producer - which has been divided since a 2002 conflict.
Mr Ouattara was initially proclaimed the winner by the country's election commission - a verdict backed by the UN, which helped organise the poll.
But the Constitutional Council, headed by an ally of Mr Gbagbo, said he had won, citing irregularities in the north which is controlled by former rebels supporting Mr Ouattara.
Both men have been sworn in as president.