If you’ve dreamed of business ownership for years, but stories of all the business that failed are stopping you, take heart. There are many ways that you can tilt the odds of success in your favor.

For one thing, the daunting statistics often bandied about that nine of ten new businesses will fail are likely false. A review of business closings by StartupJournal.com, a Dow Jones & Co. division, shows that the number of outright failures is highly exaggerated.

Nearly a third of business closures that government statistics assume to be failures are not really failures at all. These businesses were considered a success by their owners who simply sold off the pieces or closed them to retire or pursue other activities.

Data from the U.S. Census Bureau’s Business Tracking Series show that about 65 percent of new businesses are still operating after four years. That means new ventures actually succeed more often than not.

But the more resources a new business has to start with, the better its chances. That includes money, of course, but other assets such as market savvy and the right people. Here are four factors that improve the odds of new business survival:

1. People. If you can afford to hire employees, do it. Well-staffed businesses have better survival rates than solo operations.
    

2. Startup capital of at least $50,000. Not easy, perhaps, but businesses that start with less have higher failure rates.
    

3. A college degree for the owner. Better yet, enroll in a college-based entrepreneurship program.
    

4. Home beginnings. To keep costs low, start initial stages of your business from a home office.

The most common reasons for failure within the first few years include competition, mismanagement, high rent and insurance costs, high debt, inability to get financing, loss of clients and difficulty with collections. “If you’re ready to take the risk of starting a new enterprise, research your business carefully before taking the plunge,” says Tony Lee of the Wall Street Journal's StartupJournal. Even though business failure rates aren’t as high as we think, aspiring entrepreneurs still need to do their homework.

How to Start a Business in San Luis Obispo County is available from SLO SCORE members, local libraries, and the San Luis Obispo and Paso Robles chambers of commerce.  This workbook provides a helpful framework for developing a business plan, plus key questions that will influence how your business operates.

SCORE counselors provide free, confidential counseling to help you develop, prepare and improve a winning business plan.  All SCORE counseling is offered as a free and confidential community service. There are over 20 SCORE members in San Luis Obispo County assisting entrepreneurs. Counseling is always confidential and free-of-charge.  SLO SCORE  also offers small business workshops.

To learn more about SCORE and its counseling services, call us at 805.547.0779, or email us at info@sloscore.org.

Thousands of entrepreneurs have made their mark in the business world by investing in franchises. And for good reason. Franchises provide their owners with a proven, ready-made formula for business success. Although no business is without risk, franchising enables entrepreneurs avoid some of the difficulties of starting a new venture. There are also the advantages of national brand recognition, funded training and ongoing marketing and management support.

The most common type of franchising is business format franchising, essentially a blueprint for the building, promotion, operation and products or services. The franchiser provides guidance for setting up the business, ready-made advertising copy and formats, a reliable source of supplies and other services. A product and trade name franchise, such as an automobile dealership, provides extensive research and buying power, enabling the entrepreneur to offer products that may not be available locally.

However, there are trade-offs. All these benefits come at a cost, usually an up-front fee and a continuing royalty, based on percentage of sales. The entrepreneur may also be required to invest thousands of dollars in equipment and other start-up needs. Lastly, the franchise owner also relinquishes some autonomy by agreeing to follow guidelines established in the franchise agreement, which is a legally binding document.

Because no two franchise agreements are alike, you should thoroughly research the requirements of your prospective franchise opportunity, even if you already have experience in this type of business. The Internet offers an abundance of information about franchising. A good place to start is SCORE’s Web site (www.score.org).

The Federal Trade Commission’s Web site (www.ftc.gov) has information on federal regulations that affect franchising, including disclosure requirements, disclosure data on specific firms, information on complaints on file, and information about filing a complaint. You may also call the commission’s Public Reference Branch at (202) 326-2222.

The International Franchise Association, a trade association for both franchisers and franchisees, offers a variety of franchise resource books, seminars for franchise owners, networking opportunities and how-to information. You can access franchise information, as well as information about the association itself, at www.franchise.org/ or call 202/628-8000.

The American Association of Franchisees & Dealers has trademark chapters that represent all of the franchised systems in which they have significant membership. The organization offers members publications, discounts and a professional referral network.

Don’t be discouraged if your research into franchising produces more questions than answers. Franchises are a great opportunity for the aspiring entrepreneur, but your decision to move forward should be as informed as possible. A discussion with a qualified business pro is an ideal way to fill any information gaps. And the best place to find that expert advice is SCORE "Counselors to America’s Small Business."

How to Start a Business in San Luis Obispo County is available from SLO SCORE members, local libraries, and the San Luis Obispo and Paso Robles chambers of commerce.  This workbook provides a helpful framework for developing a business plan, plus key questions that will influence how your business operates.

SCORE counselors provide free, confidential counseling to help you develop, prepare and improve a winning business plan.  All SCORE counseling is offered as a free and confidential community service. There are over 20 SCORE members in San Luis Obispo County assisting entrepreneurs. Counseling is always confidential and free-of-charge.  SLO SCORE  also offers small business workshops.

To learn more about SCORE and its counseling services, call us at 805.547.0779, or email us at info@sloscore.org.