An fo er
ex r sm s an
ow
ce a d
lle ll o p
n
nt b u er
re sin ato
fe es rs
re s
nc
e
The Entrepreneur’s Guide to
Building a Successful Business
Experience and advice from hundreds of small
business owners /operators in fourteen countries
by Jonathan T. Scott
by the author of
The Sustainable Business
A PRACTITIONER’S GUIDE
TO ACHIEVING LONG-TERM PROFITABILITY
AND COMPETITIVENESS
2 ND EDITION
Taking the First Steps Toward Understanding, Implementing
and Managing Sustainability from a Cost/Profit Perspective
Jonathan T. Scott
,The Entrepreneur’s Guide to
Building a Successful Business
By Jonathan T Scott
Published by:
EFMD
aisbl
Rue Gachard 88 – Box 3
1050 Brussels, Belgium
T +32 (0)2 629 08 10
F +32 (0)2 629 08 11
E
www.efmd.org
EFMD is an international not-for-profit association (aisbl)
Copyright 2017 by Jonathan T. Scott and EFMD. All rights reserved. The moral rights of the author have been asserted.
No part of this work may be reproduced, offered for sale, sold, traded, or utilized in any form by any means, electronic or
mechanical, including photocopying, microfilm, and recording, or by any information storage or retrieval system with the
expressed written approval of the author and publisher.
Cover design: Jebens Design
Library of Congress Cataloging-in-Publication Data
Scott, Jonathan (Jonathan T.)
The Entrepreneur’s Guide to Building a Successful Business (2nd Edition): with Collective Advice from Seasoned Practitioners
/ Jonathan T. Scott
Includes bibliographical references and index
ISBN: 978-0-9818-260-1-1
1. Entrepreneurship – handbooks, manuals, study guides
2. Entrepreneurship, small business ownership, starting a business – handbooks, manuals, study guides
3. Business - handbooks, manuals, study guides etc. I. Title
,Contents
1
10 Part I: Preparation
11 1. Do You Have What It Takes?
12 Stage I: The Right Attitude
12 Stage II: Implementation (Putting Plans into Action)
12 Stage III: Diligence (Going the Distance)
12 The Four Main Fears of Entrepreneurship
15 The Top Ten Myths of Entrepreneurship
16 Overcoming Negativity
16 Developing a Healthy Definition of Success
17 The Other End of the Scale: Overconfidence
17 Advice from the Pros
18 2. Starting Your New Business: Why, When, and Where
Should You Do It?
18 Starting a New Business
19 Good Reasons for Starting a New Business
19 Poor Reasons for Starting a Business
20 When is the Best Time to Start a New Business Venture?
20 Where is the Best Place to Start a Business?
20 Advice from the Pros
22 3. Finding a Good Business Idea
26 How Stupid is a Stupid Idea?
27 The Need for New Ideas Never Ends
28 Advice from the Pros
29 4. Setting Up Your New Business: The Options
30 Part-Time Businesses
30 Full-Time Businesses
30 The Start-Up Business
30 Buying an Existing Business
31 Franchising
32 Advice from the Pros
33 5. An Introduction to the Importance of Business
Research
33 Step Number 1: Building a Strong Foundation
34 Defining Market Research
35 The Objectives of Market Research
35 Tools for Conducting Market Research
36 Sources of Secondary Data Collection
37 Sources of Primary Data Collection
39 Don’t Walk Away from the Hard Work and Time Research Demands
39 Advice from the Pros
40 6. Suggestions for Conducting Business Research
40 Conducting External Research
42 Making Adjustments
42 Conducting Internal Research
42 Researching the Cost of Overheads
43 SWOT Analysis
44 Advice from the Pros
, 2 Contents — The Entrepreneur’s Guide to Building a Successful Business
45 7.Choosing a Location
45 Questions to Ask When Choosing a Business Location
47 Learning about Leases
48 Advice from the Pros
49 8.Finding a Manufacturer or Supplier…
49 Beginning the Search
51 Keeping Manufacturers and Suppliers
51 Selecting an Overseas Manufacturer or Supplier
52 Advice from the Pros
53 9.Business Models
53 What’s Good for the Goose is not always Good for the Gander
53 Sales Volume vs. Profit Margins
53 Trying to Get It Right: The Paradox of Business Models
54 Profit Margins vs. Sales Volume
54 High Prices vs. Low Prices
54 Market Share vs. Profitability
55 Less Choice vs. More Choice
55 Competition vs. Cooperation
55 Lean Thinking vs. Business as Usual
56 Selling vs. Sales and Service
56 Persistence vs. Stubbornness (or Knowing When to Stop and Change)
57 There are No Guarantees in Business
58 Advice from the Pros
59 10. The Thirteen Main Reasons Why New Businesses Fail
(and How to Prevent Them)
59 Inadequate Planning
59 Underestimating the Commitment it Takes to Succeed
60 Cash Flow Problems
61 Poor Management
61 Not Understanding the Importance of Customers
61 Staffing Problems
62 Inflexibility
63 Poor Marketing and/or an Inability to Sell
63 Not Enough Capital
63 Pricing Problems
64 Lack of a Competitive Edge
64 Going It Alone
64 Growing too Fast
65 Advice from the Pros
66 Part II: Laying the Foundation
67 11. Writing a Business Plan
67 Why Write a Business Plan?
67 The Essentials of Good Planning
68 A Sample Business Plan Layout
69 The Most Common Mistakes Made When Writing a Business Plan
69 Additional Tips for Writing a Solid Business Plan
70 Advice from the Pros
70 Examples of Numerical Data
73 12. Finding Finance
73 Sources of Finance
© Jonathan T. Scott and EFMD www.efmd.org
ex r sm s an
ow
ce a d
lle ll o p
n
nt b u er
re sin ato
fe es rs
re s
nc
e
The Entrepreneur’s Guide to
Building a Successful Business
Experience and advice from hundreds of small
business owners /operators in fourteen countries
by Jonathan T. Scott
by the author of
The Sustainable Business
A PRACTITIONER’S GUIDE
TO ACHIEVING LONG-TERM PROFITABILITY
AND COMPETITIVENESS
2 ND EDITION
Taking the First Steps Toward Understanding, Implementing
and Managing Sustainability from a Cost/Profit Perspective
Jonathan T. Scott
,The Entrepreneur’s Guide to
Building a Successful Business
By Jonathan T Scott
Published by:
EFMD
aisbl
Rue Gachard 88 – Box 3
1050 Brussels, Belgium
T +32 (0)2 629 08 10
F +32 (0)2 629 08 11
E
www.efmd.org
EFMD is an international not-for-profit association (aisbl)
Copyright 2017 by Jonathan T. Scott and EFMD. All rights reserved. The moral rights of the author have been asserted.
No part of this work may be reproduced, offered for sale, sold, traded, or utilized in any form by any means, electronic or
mechanical, including photocopying, microfilm, and recording, or by any information storage or retrieval system with the
expressed written approval of the author and publisher.
Cover design: Jebens Design
Library of Congress Cataloging-in-Publication Data
Scott, Jonathan (Jonathan T.)
The Entrepreneur’s Guide to Building a Successful Business (2nd Edition): with Collective Advice from Seasoned Practitioners
/ Jonathan T. Scott
Includes bibliographical references and index
ISBN: 978-0-9818-260-1-1
1. Entrepreneurship – handbooks, manuals, study guides
2. Entrepreneurship, small business ownership, starting a business – handbooks, manuals, study guides
3. Business - handbooks, manuals, study guides etc. I. Title
,Contents
1
10 Part I: Preparation
11 1. Do You Have What It Takes?
12 Stage I: The Right Attitude
12 Stage II: Implementation (Putting Plans into Action)
12 Stage III: Diligence (Going the Distance)
12 The Four Main Fears of Entrepreneurship
15 The Top Ten Myths of Entrepreneurship
16 Overcoming Negativity
16 Developing a Healthy Definition of Success
17 The Other End of the Scale: Overconfidence
17 Advice from the Pros
18 2. Starting Your New Business: Why, When, and Where
Should You Do It?
18 Starting a New Business
19 Good Reasons for Starting a New Business
19 Poor Reasons for Starting a Business
20 When is the Best Time to Start a New Business Venture?
20 Where is the Best Place to Start a Business?
20 Advice from the Pros
22 3. Finding a Good Business Idea
26 How Stupid is a Stupid Idea?
27 The Need for New Ideas Never Ends
28 Advice from the Pros
29 4. Setting Up Your New Business: The Options
30 Part-Time Businesses
30 Full-Time Businesses
30 The Start-Up Business
30 Buying an Existing Business
31 Franchising
32 Advice from the Pros
33 5. An Introduction to the Importance of Business
Research
33 Step Number 1: Building a Strong Foundation
34 Defining Market Research
35 The Objectives of Market Research
35 Tools for Conducting Market Research
36 Sources of Secondary Data Collection
37 Sources of Primary Data Collection
39 Don’t Walk Away from the Hard Work and Time Research Demands
39 Advice from the Pros
40 6. Suggestions for Conducting Business Research
40 Conducting External Research
42 Making Adjustments
42 Conducting Internal Research
42 Researching the Cost of Overheads
43 SWOT Analysis
44 Advice from the Pros
, 2 Contents — The Entrepreneur’s Guide to Building a Successful Business
45 7.Choosing a Location
45 Questions to Ask When Choosing a Business Location
47 Learning about Leases
48 Advice from the Pros
49 8.Finding a Manufacturer or Supplier…
49 Beginning the Search
51 Keeping Manufacturers and Suppliers
51 Selecting an Overseas Manufacturer or Supplier
52 Advice from the Pros
53 9.Business Models
53 What’s Good for the Goose is not always Good for the Gander
53 Sales Volume vs. Profit Margins
53 Trying to Get It Right: The Paradox of Business Models
54 Profit Margins vs. Sales Volume
54 High Prices vs. Low Prices
54 Market Share vs. Profitability
55 Less Choice vs. More Choice
55 Competition vs. Cooperation
55 Lean Thinking vs. Business as Usual
56 Selling vs. Sales and Service
56 Persistence vs. Stubbornness (or Knowing When to Stop and Change)
57 There are No Guarantees in Business
58 Advice from the Pros
59 10. The Thirteen Main Reasons Why New Businesses Fail
(and How to Prevent Them)
59 Inadequate Planning
59 Underestimating the Commitment it Takes to Succeed
60 Cash Flow Problems
61 Poor Management
61 Not Understanding the Importance of Customers
61 Staffing Problems
62 Inflexibility
63 Poor Marketing and/or an Inability to Sell
63 Not Enough Capital
63 Pricing Problems
64 Lack of a Competitive Edge
64 Going It Alone
64 Growing too Fast
65 Advice from the Pros
66 Part II: Laying the Foundation
67 11. Writing a Business Plan
67 Why Write a Business Plan?
67 The Essentials of Good Planning
68 A Sample Business Plan Layout
69 The Most Common Mistakes Made When Writing a Business Plan
69 Additional Tips for Writing a Solid Business Plan
70 Advice from the Pros
70 Examples of Numerical Data
73 12. Finding Finance
73 Sources of Finance
© Jonathan T. Scott and EFMD www.efmd.org
