By Paula Steib
In today's marketplace, becoming an entrepreneur offers a broad range of advantages for some OT practitioners--but there are pitfalls, too
Traditionally, most OT practitioners have worked in hospitals, nursing homes, and other facilities as salaried or contract employees. But times are changing, and more and more OT practitioners are reevaluating their talents and goals--asking themselves if they should go into private practice or some other form of business where they have a controlling interest in the company.
For some, the possibility of becoming an entrepreneur--of starting a new business--stems solely from the dream of being their own boss. For others, however, it may grow out of a desire to blaze new trails by providing therapy in a particular way or to a special segment of the population. Still others may see it as an effective way to handle the personal and ethical challenges rampant in today's changing health care environment.
Happily, many business people believe that the explosion in technology, and today's business environment in general, makes this a very good time to launch your own enterprise.
The U.S. Small Business Administration (SBA) has developed a "Small Business Start-up Kit" that can help you decide if business ownership should be in your future. The following excerpt from that kit is just the tip of a concise, easily understood primer designed to help would-be entrepreneurs get through the initial planning process.
For more help and information, including details about evaluating the market for your services, developing a business plan, and applying for a small business loan, contact the SBA's Answer Desk at (800) U-ASK-SBA, or access their web site at www.sba.gov.
Is Entrepreneurship for You?
There is no way to eliminate all the risks associated with starting a small business. However, you can improve your chances of success with good planning and preparation. A good starting place is to evaluate your strengths and weaknesses as the owner and manager of a small business. Carefully consider each of the following questions.
- Are you a self-starter? It will be up to you alone to develop projects, organize your time and follow through on details.
- How well do you get along with different personalities? Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers, and professionals (such as lawyers, accountants, and consultants). Can you deal with a demanding client, an unreliable vendor or cranky staff person in the best interest of your business?
- How good are you at making decisions? Small business owners are required to make decisions constantly, often quickly, under pressure, and independently.
- Do you have the physical and emotional stamina to run a business? Business ownership can be challenging, fun and exciting. But it's also a lot of work. Can you face 12-hour work days six or seven days a week?
- How well do you plan and organize? Research indicates that many business failures could have been avoided through better planning. Good organization--of financials, inventory, schedules, production--can help avoid many pitfalls.
- Is your drive strong enough to maintain your motivation? Running a business can wear you down. Some business owners feel burned out by having to carry all the responsibility on their shoulders. Strong motivation can make the business succeed and will help you survive slowdowns as well as periods of burnout.
- How will the business affect your family? The first few years of business startup can be hard on family life. The strain of an unsupportive spouse may be hard to balance against the demands of starting a business. There also may be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk.
On the Upside
While it's true there are many reasons not to start your own business, the advantages can far outweigh the risks--for the right person. Some of those advantages include:
- Hard work and long hours directly benefit you, rather than increasing profits for someone else.
- Earning and growth potential are far less limited.
- A new venture is exciting.
- Running a business will provide endless variety, challenge, and opportunities to learn.
Women Entrepreneurs on the Rise
The number of women-owned businesses in the U.S. is increasing at nearly twice that of the national average. According to a February 1998 study, the primary reason women launch new businesses is that they are inspired by an entrepreneurial idea. The next most frequently stated reason women give for starting their businesses is frustration with their previous work environment.
The study was sponsored by the National Foundation for Women Business Owners (NFWBO), Catalyst, and The Committee of 200, and by Salomon Smith Barney. It was based on a nationally representative survey of 800 women and men business owners.
The study also revealed that women who started businesses over the last 10 years are likely to have prior experience in professional or management positions. Those leaving corporations increasingly cited frustration with the work environment as a factor.
Fifty-one percent of women business owners with prior private sector experience cited the desire for more flexibility as the major reason for leaving their corporate positions.
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