During the last 100 years, we have created more wealth, reduced poverty more, and . . . → Read More: Entrepreneurs are the heroes of the world]]> Synchronistically to my post about business being a noble calling, I found someone who really hit the nail on the head. It is from the winter Cato Institute Letter, and is titled "Entrepreneurs Are the Heroes of the World."

During the last 100 years, we have created more wealth, reduced poverty more, and increased life expectancy more than in the previous 100,000 years. That happened because of entrepreneurs, thinkers, creators and innovators.

Thanks, ExtraEagle for the link.

Technorati Tags: entrepreneurs, heroes, cato

The study measured the top 50 cities in the country. For reference, other cities I or my wife have lived in are:

Particularly interesting was the statistic that one in seven were in 13 counties out of the whole nation: L.A., Cook . . . → Read More: More millionaires than you can shake a stick at]]> There are more millionaires in the U.S. than I realized. According to the New York Times, there are 8.9 million families with a net worth of $1 million or more in the U.S. today.

Particularly interesting was the statistic that one in seven were in 13 counties out of the whole nation: L.A., Cook (Chicago), Orange County, Maricopa (Phoenix), San Diego, Harris (Houston), Nassau, Santa Clara, Palm Beach, Middlesex (Boston), Suffold, King (Seattle), New York.

A couple other key quotes:

In most large counties, about one household in 12, or about 8.5 percent, was worth $1 million or more, Ms. Luhr said. An exception was Nassau County on Long Island, where millionaire families were more than twice as common, at 17.5 percent of all households.

The survey found that 29 percent of the millionaire households did not own stocks or bonds and 32 percent did not own mutual funds. One in four had a second mortgage on a home.

Via: My Open Wallet

Technorati Tags: millionaire, statistics

The one fear that stood out to me the loudest was that they were afraid they . . . → Read More: No need to be the hero]]> By talking with a group of young people about whether they would ever think of starting their own business, author Dave Pollard found several common fears, which he has taken the time to debunk in a thoughtful article.

The one fear that stood out to me the loudest was that they were afraid they “couldn’t handle the loneliness”. Mr. Pollard responds very well, pointing out that they should definitely not try to be and do everything in a business.

“The entrepreneurs I know are the loneliest people in the world. They work incredible hours and have no time for anything else. They have to learn how to do everything themselves, because they can’t afford experts and consultants.” The biggest mistake a lot of people make in starting their own business is trying to do it all themselves. One-person enterprises have the highest rate of failure, largely because no one can know everything you need to know, or have all the requisite skills, to succeed in business.

This is something I’m coming to terms with, my desire to be the (cheap) hero and do everything myself. I know I have to get over this, but it is such a deeply ingrained tendency. “Of course I can do that, I’m smart enough to figure it out. I just need a book, or some advice.” Yes, I could do most things, (like accounting for a glaring example) but wouldn’t my time be more fruitfully and enjoyably spent growing my business?

Technorati Tags: Entrepreneurship, startup, business plan

Actually, more than 50% . . . → Read More: Correcting entrepreneurial myths]]> I’m always amazed at how the right information finds me at just the right time. I’m in the process of launching a new business, and today I found an article at entrepreneur.com which addresses 5 (really 6) common myths about starting a business.

Myth #0: 90% fail in 1-2 years

Actually, more than 50% of new businesses last more than four years. Of those that do close, many do so for reasons unrelated to finances, and were actually profitable when they closed their doors. I don’t know about you, but I’d heard that old “90%” statistic one too many times, and it was making me more nervous than I needed to be.

Myth #1: Do What You Love, and the Money Will Follow

It is important, but not everything. In some cases, too much passion is a detriment to doing what is right for your business or your customers.

“What you think you’re going to start out doing can morph on you,” she says. “If it’s not working, pay attention to the opportunities. I’ve seen a lot of people fail because they got rock-headed and wouldn’t pay attention to the opportunities.”

Myth #2: You’ll Miss the Security of a Job

You may miss the illusion, but the fact is that you have no security when working for others. They can and will get rid of you at the very first instant that it is financially advantageous for them to do so. I’ve been absorbing this one for a long while now, and Steve Pavlina finally made it through my thick head when he pointed out that he feels more secure by having multiple streams of income. If one dries up, he still has the majority of his income, instead of the typical employee situation where 100% of your income comes from just one source.

Myth #3: If You Don’t Grow, You’ll Die

Businesses can be both profitable and stable without having to become world dominating. It makes sense once you take a moment to think about it. Most companies are fairly stable in size after an initial growth ramp, actually.

Myth #4: If It’s Such a Good Idea, Somebody Would Have Thought of It Already

Maybe, or maybe you can do it better. Possibly you could take a proven Microsoft tactic and win by better marketing. Most small businesses are terrible at marketing.

Myth #5: You Can’t Start a Business Without a Lot of Money

Not true in reality. According to the article:

The average entrepreneur starting a one-person business plans to get underway with about $6,000, according to a 2003 SBA study. Businesses that involve teams of founders shoot a little higher, aiming for $20,000 in startup capital. While that’s not peanuts, it flies in the face of the common perception that it takes a great deal of money to start a business.

Link found via Business Opportunities Blog

Technorati Tags: entrepreneur, business, startup, myths