Entrepreneurship | Knowledge Hoop

Category Archives: Entrepreneurship

Unemployed? You’re the Answer

Posted on June 9, 2011 by Khooppres Leave a comment

The May Jobs Report was very disappointing. The unemployment rate remained unchanged at 9.1%, but the most alarming bit of news related to the drop in the number of new jobs created. According to an article in USA Today, employers only added 54,000 jobs, which represents the smallest gain in eight months. Many economists predicted an addition of 175,000 jobs during the month of May.

For African-Americans, the bad news doesn’t stop there. During the month of May, the unemployment rate for African-Americans rose to 16.1%. While the unemployment rate for African-Americans has always been higher than the national rate, paired with the recession and the housing crisis, wealth creation is clearly not at the “top of minds”, survival is. Survival is nothing more than maintaining with less. If you’ve mastered survival, it’s now time to step up and out of your comfort zone to develop a strategy / plan to recover.

As you develop your strategy, consider the following questions:

1. Are you doing everything you can to position yourself to compete in today’s job market? In February, I developed the Aim to Win in This Economy series. Two of the posts within the three-part series focused on personal branding and education. When you’re unemployed, your “job” is to find a job. Don’t waste your time by exploring opportunities half-heartedly – make sure you are giving your all to the job search. If you’ve been beaten down by rejection after rejection, make a concerted effort to recover your swagger. While I’m not a fan of the saying, “fake it till you make it,” it is a necessity during your job search. Employers want to hire people who are confident in their abilities. If you can’t convey confidence during the interview process, you will not get the job. As you pursue opportunities, “clothe” yourself in the confidence that you are the best person for the job – have faith in you.

2. Is it Time to Broaden Your Horizon? In order to see the beauty of a rose-bush, the bush has to be pruned, and the flowers in the field need rain to grow. I will stop with my poetic moment, but my point is that we grow the most as a result of our failures and setbacks. If you have been beating the pavement, but coming up empty-handed, perhaps you should consider relocation – seek opportunities in other cities. This is definitely a move that will take you out of your comfort zone, but you’ll never know what may await you if you don’t try. The Huffington Post recently posted an article entitled The 10 Cities With The Most Job Postings: Indeed.com. Factual information posted on job search sites may assist you in targeting cities. However, keep in mind that the number of job postings does not always correlate with actual hires. While job postings are an indicator of a city’s economic health, sometimes companies post openings but defer fulfilling them due to market shake-ups (e.g., May’s Job Market Report). If you’ve considered exploring opportunities in another city, there’s no time like the present, but be realistic about your expectations.

3. Is There an Entrepreneur in You? The final entry in the Aim to Win in This Economy series was What’s Your Passion? If you are talented and have always dreamed of creating your own business, now is the time. Some of us are self-starters – if we aspire to do something, we simply do it. There are others that have to run out of the “comfortable” options (i.e., steady job, difficult boss, health scare, etc.) before taking a leap of faith to pursue the dream. While there aren’t many businesses that you can start without some money in hand, there are programs available to assist you with funding. Earlier this week, the Obama administration partnered with Rutgers Business School to host the first Urban Entrepreneurship Summit. The primary objective of the Summit was to explore ways to build new public-private partnerships to ignite urban job creation. Based on the speaker line-up for the conference, there was a clear emphasis on African-American entrepreneurship. In addition to initiatives like this, the Small Business Administration (SBA) recently rolled out two new programs that are designed to assist small business owners with capital needs. The Small Loan Advantage and the Community Advantage initiatives offer a streamlined application process for SBA(7) loans. Key benefits include loan amounts up to $250,000, shorter application process, and a 5 to 10 day approval process. As you can see, the federal government has a vested interest in your success as a small business owner. Do your homework and get to work.

Although the May Jobs Report may have fallen short of expectations, don’t allow historical data to predict your future. History does not have to repeat itself.

Aim to Win in This Economy: What’s Your Passion? (Part 3)

Posted on February 28, 2011 by Khooppres Leave a comment

As I prepare to close the Aim to Win in This Economy series, the last topic I would like to discuss is pursuing your passion. Each one of us has been blessed with unique gifts and talents. Many times, the things that we’re most passionate about align with the things that we do well. Take a moment and think about the co-worker, relative, or friend that is an extraordinary artist. Or, maybe you know someone great at event planning or helping others organize and de-clutter their lives. What about you? What can you do well?

According to an article in BusinessWeek, as a result of the recession, “necessity entrepreneurship” has increased significantly. Necessity entrepreneurship occurs when people start businesses because they can’t find other employment. In recent surveys conducted by Global Entrepreneurship Monitor, a research project that tracks entrepreneurship, necessity was a factor for 24.7% of new U.S. businesses in 2009, up from 16.3% in 2007. Many times, business ideas are deferred for the safe bet, but when you are unemployed or underemployed, the risk factor carries less weight.

Entrepreneurship is woven into the fabric of what makes our Country great. However, to be successful, it takes more than talent. In order for a small business to become a great business, the business owner has to work on the business, as well as in the business. Perhaps you’re a wonderful baker, or a great decorator; it does not mean that you have the know-how to start a business and manage it effectively. Please understand that I am not trying to “rain on your parade”, but I want to stress that your passion may steer you to the business of your dreams, but it will not keep you there. Ultimately, if you are not willing to do the work, don’t waste your time and money. However, if you understand that owning a business is much more than the skill or talent you possess, take the leap of faith and “bet” on you. The following are key considerations when starting a business:

Ownership Structure – Will you operate as a Sole Proprietor, Partnership, or Corporation? Spend some time researching your options and choose the best structure for you. The Internet has a number of resources to help you navigate through this process, however, if you’re unsure of where to start, consider www.legalzoom.com.
Applicable Federal and State Laws – Once you’ve identified your ownership structure, it is imperative that you gain a thorough understanding of federal and state laws that apply to your business.
Develop a Team – Although you may be able to produce the product for your business, an effective business requires a multitude of skill sets that you may not possess. For instance, every business has to incorporate marketing in order to compete, and let’s not forget about bookkeeping and taxes. If you do not possess these skills, you will have to hire help. The skills that I mentioned in the example are necessities. While I understand the need to save money where possible, foregoing the basics will land you out of business or in jail.
Protect Your Business – Explore insurance options for yourself and your business. Insurance is something that we hope we never have to use, but are ever so grateful that we have it should the need arise.
Capital – It takes money to start a business. While it doesn’t hurt to be cost conscious, you have to be realistic about what resources you have available. It is also wise to consider establishing a reserve for the unexpected.
Find a Mentor – My favorite phrase is: You don’t know what you don’t know, and you can’t do what you don’t know. It is very important to find a mentor that has been where you’re trying to go. There is no shame in asking for help.

In addition to the considerations above, begin to seek resources that can help you fill in your knowledge gaps. T. Harv Eker, author of Secrets of the Millionaire Mind, says it best: “Every master was once a disaster, you can learn to be great at anything.” Successful people are teachable. Invest in yourself and seek opportunities to learn as much as you can about business. Although I mentioned that it is important to develop a team, you should still be equipped with the basics. For example, an accountant may prepare your financial statements, but you should have a thorough understanding of what’s being presented. Included below are links to a couple of resources that I’ve found extremely helpful:

The E-Myth: Why Most Small Businesses Don’t Work and What to Do About It, by Michael Gerber
www.startupnation.com

I hope that you’ve enjoyed the Aim to Win in This Economy series. I’d like to hear from you! If you have recommendations on additional resources that can be helpful to those of us that are striving to pursue our passion, please share. Remember, every great business was once a small business!