| Tuesday, November 24, 2009 |  |
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January Financial Fitness Challenge—Think 'Future' When Starting a BusinessHumble beginnings can lead to big accomplishments. The BBC reported that Warren Buffett, today a billionaire, filed his first income tax return at the age of 13, "deducting his bicycle and watch as a work expense for $35 for his work as newspaper delivery boy." Clearly, between a dream and achievement a lot of work needs to get done. If you're on the brink of a new-business decision, you have abundant resources before you. Starting a business in these times, in any time, needs to be a calculated risk and not a casual effort. "Some are more calculated than others," cautions Joan Gillman, director of special industry programs with the Wisconsin School of Business for the University of Wisconsin-Madison. "Do some future-think," she advises. That is, look at what will be different in two years compared with two years ago. "Look at how your cohort has changed," she says, pointing out that baby boomers have lost a sizable amount of their investments in the market. How will buying behavior change as a result? What trends are going to emerge? What do people buy, face to face or online? The same questions apply to business-to-business and business-to-consumer ventures. Entrepreneurial opportunity"Anything with 'environment' in it is probably a good thing," Gillman surmises. And she suggests looking at franchises or direct selling. "These can be viable ideas with little investment." Or, if you have skill or a trade—plumber, mechanic, for example—this can be a great time to launch a business. Gillman, the author of "Business Plans That Work," points out that people keeping their cars longer need good mechanics to keep them running. Deciding to start a business is a time for rigorous honesty. "Look at your strengths and weaknesses, on paper with two columns," Gillman says. And if you're contemplating partnership, make the same assessment with your partner. For example, look for complementary strengths and weaknesses—you won't have balance if you're both strong in the same categories. People keeping their cars longer need good mechanics to keep them running.
Turning Point—Starting a BusinessFor a deeper look at the idea of starting a small business, check out the first module in our new Turning Points series, Make the Move to Small-Business Ownership, by Darla Dernovsek. If you're a small-business owner, or thinking of becoming one, ask the people at your credit union for guidance. Providing small-business financing and services is just one more way that credit unions step up to help members, in good times and bad. ST 
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