When interviewing a candidate for a position, one trait a potential boss is in the lookout for is attitude.  Once that is found, the position is formally offered and the applicant becomes a probationary employee.  Why give a test period of employment?  Because in that short span of time, a superior will be able to truly find out if the applicant they offered the job to really is of the perfect fit.  Since attitude has already been stricken off the list, what other traits then will he be searching for? Oh, there are a lot.  But one thing is for sure, one check box will be under the term passion.  Like a probationary employee proving himself fit for a job, an entrepreneur must also find out for himself if he has the heart fit for the new business he has agreed to take care of.   If you have passion for your new business, chances are, you will persevere to succeed.

Louise, an acquaintance, is an example that best drives home this point.  She has always been connected with the hospitality and retail world.  Ever since college, she has worked in that industry and made a decent living out of it.  But early this year, she made a bold leap. Louise took and finished a stage management course at a local theater school and everyone could tell she has changed.

Before, Louise quietly made her living in the hospitality and retail business. If asked about her job, she’d come up with monosyllabic replies that no further conversations ensue.  Now, she is thriving in theater productions and creating waves of praises every step of the way.   She’d jump at every opportunity to share her career choice and what new productions she’s contributing to.

Indeed, Louise is a new person.   There is sheer excitement and infectious passion in her voice, her enthusiasm is highly contagious.   By leaving behind an industry she had no passion for and taking the chance to heed her heart, Louise stepped away from her once dreary survival attitude to one vibrant, excited and full of life.

According to a study conducted by Professor Charles Birch and Management Consultant David Paul titled Life and Work, 88% of people are dissatisfied with their job.  It is a pity, really.  To think that a regular human being spends nearly half of his life making a living before retiring to enjoy the fruits of his labor, to be stuck in a career that only brings you unhappiness may rob you of the chance to enjoy retirement.

So how do you know if you have the passion for the new business you are about to embark on?  Here’s a simple test: list down the three things that brightens your day when you engage yourself in it.  Is it people, sports, history, music, art, gardening, clothes, animals, languages, children, buildings, antiques or travel?  What genres of books are you usually hooked to? Conversation topics that get you excited?

Find your stage management course passion just like how Louise found hers.  Today, Louise shares that her work no longer feels like a job but simply, sheer enjoyment. It doesn’t matter if she has to work on weekends because to her, “everyday is a weekend!”  If you enjoy your own business, you will work and work without counting the hours. Your passion will be like the wind that pushes your ship forward without the need for fuel.  If there would be bumps on the road, you’ll look at them as exciting new learning opportunities and eventually, the earnings you will reap you will enjoy immensely.

Businesses, such as consultancies, can get started with very minimal cost; but most of the time, it costs quite a sum to get a business running. As an example, the average cost of setting up a diner costs almost half a million dollars. These start-up costs mean that you’re already shelling out money even before any profit comes in.

Business expenses are generally deductible to your company. On the other hand, start-up costs are different because there is no operational business yet to deduct the costs from. This therefore means that start-up costs are only deductible if your business has already been operational when you incurred them. However, there are certain costs during business startups that can be deductible. These can be deducted either in your first year of operations or over time. In taxation law, these are called start-up costs; and the same rules apply whether you’re running a sole proprietorship, a partnership, or a corporation.

Start-up costs are costs that are usually incurred even before your business starts operations. However, other costs such as purchasing a business or a franchise, and other capital costs are not included as startup costs. Moreover, acquiring properties and developing them are also not classified as part of a business’ startup cost.

So that you’d know, deductible start-up costs fall under three different categories. You might want to check your receipts or expenditure records to see if they fall under any of the three.

The first type of category are investigatory expenses. These expenses are incurred when you are usually gathering data or information on what business to buy or start. Examples of such costs are employing surveys, market analysis, and the corresponding products and labor costs. Moreover, you can also include travel costs when doing an ocular inspection of a business or site under this category.

The second category are costs that fall under business start-up costs that were incurred before the business began to operate. Such costs include advertising and employee training. Moreover, costs that are incurred when travelling to vendors, distributors, and customers can also be included. Likewise, these costs can also include consultation fees and fees to set-up your bookkeeping process.

The third category are costs that are incurred during the pre-opening phase of your business. These are costs either paid or incurred before the first operating day of the business.

You must always take note that not all costs that has to do with business start-ups fall under these three categories. Some examples are the cost of buying a business or acquiring properties that are related to the business.  Moreover, costs that are incurred due to building or developing a brick and mortar shop are not deductible as start-up costs.

If you’re planning to open a business, it is always best to keep records on what you’re spending money on. Save your receipts and take good notes on what the costs were for; and doing this will allow you to take full advantage of writing-off your business startup costs.

Not all trailblazing scientific discoveries of our time came from well-calculated, well-thought of laboratory procedures and analysis.  Some, if not a good chunk of it, came from that unexpected yet exciting “Eureka!” moment.  Like these important scientific discoveries, ask successful entrepreneurs today and realize that not all of them jumpstarted their business after making careful plans and programs prior to their launch – some were actually forced into it at first.

Below is an anecdote an online blogger once shared as to how he was pushed into striking it on his own and finding out that he would be immensely grateful about it today.

The year was 1999, this blogger of ours was just 25 then and was fresh out of college.  With the sheen of a freshly polished hardwood floor, he sailed from UK to Sydney to experience life on his own.  Offered a post at the Tourism New South Wales where he quickly made friends, he got the rare opportunity to actually mix business with pleasure and get paid doing it. It was indeed a gig that gave a pay check but nevertheless, simply a gig.  To this young lad of education, it was a temporary thing so when the offer to take on a full time job came, he quickly grabbed it.

The full time position offered was that of a Sales Director’s secretary.  It was a sweet deal.  After all, a degree from one of England’s top universities will have surely equipped the young man with all the skills necessary to type, print and answer telephones, right?

Imagine then his surprise when come performance evaluation time, his superior marked his card a simple and glaring ‘Average.’ Average! Horror of horrors for a secretary who has always been receiving straight As in college!

Dazed and unwilling to accept such a crude appraisal, the young man confronted his boss on the evaluation.  The boss, kind and wise, decided to patronize the young man by explaining his rationale for the grade.  His boss’ reply?  “It’s not that you’re unable to do this job, Sam, but it’s obvious you don’t want to. So you shouldn’t do it. You’re just not cut out for it. I need more engagement, more commitment from my secretary.”

Both men knew then that these essential “secretary qualities” would never manifest in the young man. In the end, our blogger resigned from his post.

It was a bitter pill to take for our young man. It was, to him, failure. But instead of admitting defeat and indulging in bitter thoughts for his boss, our lad decided to do some honest self-assessment.

Today, Sam is one of the most sought after copywriters in Australia.  His target market, although very much exposed to his competition, remain loyal to him because of his impressive outputs. And his very first client was? It was his boss.

To gain a closer step to success, one must remember what our peers from the East believe in – that the Chinese character for success looks a lot like the character for opportunity. In other words, don’t look at disaster and stay fearful of it.  Look it in the eye, understand it, then find that single “Eureka!” key behind its exterior that you may use to turn it into an opportunity for your development.  Pushed, shoved or jumped into your own business – really, does it matter that much?

There are two important lessons that you can learn from the story of Forrest Gump. The first thing is that you should not let anyone tell you that you cannot do something. And second, you must learn to run!

Just like large firms, having a small business is no walk in the park . You will have to face difficulties especially during the earlier stages. The important thing is that you do not let these obstacles stop you and more importantly, you learn from them. In fact, even if you have been in the industry for years, you will still face hardships. This implies that will never stop learning. Here are a effective tips that will help you get through the bumps of having a small business.

Having a few staff means people must play dual roles that may include sales, bookkeeping, publicity and administration among others. They key is to compensate them properly so that you will not get caught in the trouble of having too much to do. However, ensure also that the payments that you are making will not hurt the firm.

You must also make the most of your time. Since you will be hiring people, you will be able to have more time to do other things. Manage your time well. Make sure that each day is productive.

Problems, again, are inevitable. And they may come in as small glitches or huge disasters. They key is to know when you need help. Call experts and analysts that can help you sort thing out.

Be observant. There are people who will try to take advantage of you and your business. Know who to transact with. And more importantly, know when you are being taken advantage of.

Be open to suggestions. As a business owner, you would want to do everything they way you find most effective. This should not always be the case. You can learn a lot from experts and even your inferior employees.

Check up on your business regularly. Consult an accountant to check on your finances. You can also seek the advice of a lawyer on the legalities of your business transactions. Prevention is always better that cure. Solving a problem at the start can do miracles in saving your business.

And lastly, make sure that you earn enough from your business. You may not earn as much during the first years but you must make sure that you actually earn. Even if you love your business very much and you are passionate about what you are doing, not earning enough is a sure way of shutting down. Even if you are not doing it for profit, you will still need enough earnings to provide the wages of your employees and to purchase your inputs. If the records show that you are not earning, then it is time to look for the problems of the firm. Address them immediately and if symptoms persist, you may want to overhaul or even rethink your business.

Unlike employees, a change in business venture for entrepreneurs is not as easy once you lose passion for the one you are handling now.  For employees, especially the job jumpers and those relatively new to an industry, it’s as easy as printing out a resume again and broadcasting it to every nook and cranny possible.  But if you own a business and find that you have lost heart in it, what do you do?

I came across a blog entry where an entrepreneur shared how she tackled this very situation.  See, every once in a while, even if you have a business that has already been established, there comes the very rare time when you undergo what one calls in the personal change industry as transition.  This blogger shares she was already seven years into her current field when, after having completed a qualification for another mutually exclusive industry, she discovered she would rather be playing in the new one rather than the old.

In a way, for people like this blogger, the change is exciting. It is like letting a toddler loose in a toy store or a sweet-toothed kid escape in a candy shop.  Much joy lies ahead but on the other hand, as the handful of entrepreneurs who underwent transition would admit, there is this longing of not letting go of the current business.  Thus, there lies the dilemma.

In business, if one is capable enough to thrive in more than one industry, it is beneficial to venture into a totally new market in order to spread the risk should external negative factors befall one venture.  Unfortunately, not all business owners have the capacity to handle personally two mutually exclusive endeavors and in the end, one or both businesses suffer.  In the case of our blogger, what she did was to leave her first business but without merging its best practices, resources and connections first with the excitement and passion her second business interest gave.   She left her first business because she admitted to herself that she has lost her passion for it.

Indeed, to succeed with one’s own business, one has to be honest enough with one’s self assessments to be able to bring forth 100% focus and passion towards its growth and flourish.  Admittedly, some entrepreneurs discover their real passions a little later than hoped but once one gets to the cross-roads of decisions, one has to honestly analyze one’s self so that the next step, whether leading left or right, will prove to be correct and wise.   After all, changing a business one owns is not as easy as printing a resume and finding a new venture.

Are you in love or just in love with the feeling of being in love?

Starting a business is much like falling in love – you finally get to do what you love doing, earn a living from it and get the chance to actually contribute to the betterment of the market you are targeting.  But like falling in love, one has to do an honest self-assessment prior to starting a business to make sure, for one’s own sake and sanity, that the urge is indeed genuine and will thus be sturdy enough to withstand the tests surely to come.

Self-Assessment 1: Uncover the Real Objectives Why You Wish to Work for Yourself

If you are currently employed, what is moving you to drop your position for a business of your own?  Determine if it is simply frustration from your current work.  Is it the colleagues around you, the superiors handling you, the company culture misaligned from your own or the present compensation package?  If it is the pay, is it the dream to earn a better living the motivating force that is driving you to start your own enterprise?  Is it independence that you wish?  Or is it all because of your gut feel that you have a head for business so you think you’ll be good at it?

Take heed in these guide questions because they form the very thin line between victory and downfall.

One blogger once shared that her friend and neighbor, who goes by the name of Brian, knew she worked at home and had been doing it for quite some time by then.  Because Brian had had enough of his then boss, he called it quits and decided to make it on his own.   Having experienced human relations management for some years then, Brian thought he’d try his hand on real estate selling using the skills he has acquired.  Passing qualifications and becoming an agent was easy.  But as Brian realized, it did not end there.

It became a chore for Brian to have to wake up each day to get property listings because without those leads, one will not be able to make a sale.  Because it is only after work that potential clients have free time to actually discuss business, Brian’s phone rang nonstop most evenings which caught him unawares and horrified.

Last she saw him, he was a wreck, ready to place himself back in the employment market again to find another job.  Brian realized there is more to self-employment than not having to undergo daily travelling to and from your office.

Self-Assessment 2: Instill Self Discipline to Work for Yourself

Understand that being your own boss does not immediately spell freedom to do whatever you want and when you want it.  Throwing all caution in the wind will only lead to disaster.  If you dream of success for your own business, you must understand that with it comes self discipline.  Prepare yourself to spend long hours especially at the onset of your start-up company.  Excite yourself with opportunities every day such as gaining new skills like marketing or developing improving habits like waking up early every morning to make things work.

Your support system must also be brought up to speed on your new venture.  They must understand that although you will be more or less handling your own time, this does not necessarily mean they can simply butt in any second and expect you to drop everything just to focus on them.

Self-Assessment 3: Cash Management

Once started, keep in mind that there are two types of capital in business: your start-up and your working capital.  Once the first few deals are sealed and paid, be cautious not to feel like a one-day millionaire and surprise the town on a spending spree thus draining you of cash needed to keep your business operations going from day to day.  If at the moment money for you feels like an exhilarating opportunity to spend for something – no matter what it is, it is recommended you take a quick course on money management.

Self-Assessment 4: The Importance of Perseverance

When you start a business, ensure that what you invest into is really your passion.  There will come a time when things will turn rough and stormy, that is a fact. If you are not passionate of your business, you will not have the will to continue and simply give up.  Perseverance is one of the best traits of successful entrepreneurs.  Just like a flower seed newly planted in your garden, you cannot expect to sow it today, water it later and enjoy its bloom the next day.  Remember, easy come, easy go.  Once you start your trade, invest time and patience in it long enough to see it grow to eventually give you the rewards you’ve been dreaming of.

Need to relocate, but having some issues getting out of your lease? Is your business downsizing because of the current environment and you need  to share some of the rent? If this is so, you might want to consider subleasing your unused space to other businesses. Engaging in a sublease agreement will definitely be a big help in your business’ cash flow. But before that, there are three important things that you need to know before doing a sublease.

First thing that you need to do is to find out if you are able to sublet. You can do this by checking your current lease agreement. Usually, there are specific clauses in the contract that do allow you to sublet; like twenty-five percent, for example. Just be mindful about the maximum allowable space that the contract allows. Subleasing more than the allowed limit allows the landlord to exercise his or her “right of recapture.” This means that the landlord can take back the unused space and have other businesses lease it directly from him or her. The commercial realty market also determines the landlord’s tendency to exercise this right. In a recent study conducted by U.S. realty market expert, Cushman and Wakefield, they have found that the office vacancy rates in major markets have decreased by around seventy-one percent within the last four years. It will also be a good idea to check with your landlord regarding options on the space that you don’t need.

Transferring out of a leased space is an entirely different deal. If you are moving out of leased space due to business decisions like cutting overhead costs, relocation, or even closing shop, your lease agreement may or may not allow you to do so. In these situations, it might always be better to have your landlord exercise his or her right to recapture the space. Doing so will avoid you the obligation of collecting rent from subtenants.

Second important consideration in doing a sublease is deciding on how much to charge. One very important consideration is that you might charge lower than your actual rent. This is because subtenants are always looking for the best bargains around. Moreover, in markets where commercial space is at a premium, charging higher than the landlord’s rent might see you splitting the lease with your landlord. It is always best to check your lease to see if there are clauses that  specify any sharing of rental amount; if you plan on renting out higher than your current lease.

The last consideration is finalizing an arrangement with your tenant. If you need to have some structural changes to accommodate a tenant would, of course, merit a higher rate. Also take note that any structural changes you plan to do must always adhere to the building code. Likewise, you also need to craft a contract for the tenant. Most of the time, the contract includes the percentage of the sublease of your space. Furthermore, some contracts also can alternately offer a “seat lease.” What this means is that instead of renting space, the subtenant rents a specific work station in your office. Always make sure that the contract includes other services that you offer like inclusion of internet access, receptionist services, use of the pantry, and use office equipment, to name a few.

As a final note, you don’t really have to create a sublease on your own. You can work with real estate agents who can ensure that the facilities and services you offer conforms to your current lease and whatever provisions you have in mind work to your and your subtenants’ best interests.