|
Based on my observations many small businesses are started by skilled, motivated owners. However, many of these entrepreneurs don’t really know how to calculate cost and profit, and manage/run a business. They are good people, but don’t have the business sense to operate on their own.
For example, to operate a lawn service you need to buy equipment, which might mean financing (or money from Dad), which leads to understanding interest, interest rates, payment plans, etc. You also need storage space and trucks to move equipment, and you have to figure out the best and cheapest way to make that happen. You also need to be able to schedule jobs, send out workers that get there on time, and properly bill customers. None of this is required when you just work for someone else, so a young person may have no experience. The end result can be a failed business, even though the owner is skilled and motivated.
|