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This section of the University Career Services' home page was designed specifically for those seeking to go into business for themselves or join an entrepreneurial venture. Many useful links are provided here to assist you in planning all aspects of a new business.
Profile - Is there an entrepreneurial profile?
Getting Started - Got my idea, now what?
Resources/Statistics - Business plans and other information relevant to starting your endeavor
Organizations - Links for organizations whose focus is small business or entrepreneurship
Financing - Tips on presenting your plan to investors and links to bring together entrepreneurs and leading members of the funding community
Government/Legal - Resources from governmental and legal agencies geared specifically for the business and Internet community
News for Entrepreneurs - Several useful links to keep abreast of changes occurring in your field
NU Entrepreneurs - Resources and clubs at NU - Events - Alumni Network and Directory
Seeking a Job in this Category
Students (Undergraduate and Graduate Students)
Discuss your interests and career plans in this category with UCS staff. The first step is to stop by during walk-in hours.
Alumni
Profile
Most studies show that over 2/3rd's of entrepreneurs come from families with historically strong entrepreneurial backgrounds. However, the opportunities created by the Internet in this boom economy have shown us over the past several years that anyone can be an entrepreneur.
Beyond family ties are other attributes entrepreneurs have in common. The desire for achievement is very strong. Many standardized tests show entrepreneurs as goal-oriented achievers. Interpersonal skills are another attribute commonly associated with the people who exhibit an entrepreneurial spirit. People are at the heart of success. Entrepreneurs sell to people, work with people and must get along with people. The survival of a start-up is often based on the ability establish and manage an interpersonal network. Entrepreneurs are also attracted to power. However, power means different things to different people. Entrepreneurial power may come from being in a position to influence people. Entrepreneurs tend to desire control of every aspect of running the business, and why not, their early survival is dependent upon it. This very same character trait which is so necessary to getting started can be the "kiss of death" when the venture reaches a critical size. Entrepreneurs also need to know when to transfer their power into empowerment.
Finally, many entrepreneurs have deep business knowledge, either from their own experiences or through extensive education and research. They are extremely motivated and fascinated by nearly every aspect of their chosen area of expertise. They need to know their product, its market, competitors and be able to create appropriate market entry strategies. To start up a venture on your own you must have capital, initiative, creativity, and nerves of steel. Hedge your risks, always keep a plan B in mind. Over three-fifths of new businesses and franchises fail within eighteen months of opening their doors. Few entrepreneurs think to arrange a back-up plan in case of failure.
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Getting Started
Where do I get the money? Money is without a doubt, a serious concern, but not the most important (we will discuss financing channels later). You should begin by asking yourself questions on a far more personal level in order to refine your plans and increase the likelihood of success.
What do you want out of life?
Ask yourself about your life's goals and how running a business coincides with these goals. Entrepreneurism creates major life changes. It is a decision you will live with for a long time. There is no more important question you can ask than the one that will help prioritize your life's plan.
What do I like to do?
Ask yourself these questions: What you enjoy doing and what you are good at? What do I like to do with my time? What technical skills have I developed? What do others say I am good at? Do I have any hobbies or interests that are marketable? Are the rewards - financial and personal - commensurate with the dedication and efforts success will require.
To access current and up-to-date articles about entrepreneurship look at Inc.com magazine, the “daily resource for entrepreneurs.”
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Resources/Statistics
The process of developing a business plan will help you think through some important issues that you may not have considered yet. Your plan will become your biggest asset as you set out to raise money for your business. It should also provide milestones to gauge your success. Business plan recommendations from Inc.'s Guide to Small Business Success include:
- making your plan easy to read
- including an executive summary
- investigating the market
- preparing information regarding management (org. chart)
- submitting information regarding financials including projections listing your assumptions.
Some additional resources to get your business plan from in your head and onto an investor's desk:
- Emarketer - Internet usage stats, analysis, statistical estimates, projections and long-term trends for the evolving Internet marketplace.
- Red Herring - Provides analysis and commentary about the business of technology, provides news, pre-IPO company tracking, business and investing information.
- Entrepreneur - Industry experts answer user questions and conduct hosted chats, there are 11 databases and services such as a barter network, business financing, lawyers, personnel and Web developers.
- Kauffman Eventuring - Resource for small business owners and contacts for the entrepreneur.
- Business Know How - Content provider and resource for home offices and small businesses.
- Biz Move - Guidelines and tools to manage your business.
- Business Plan Guides - Company, market, and financial planning, business plan writing, business planning strategies, starting a business, growing a business, expanding a business, mission statements and logo design.
- Business Plans - Planning resource center.
- Wall Street Journal Start-up Business Center
- Network Solutions - Internet domain name registration.
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Organizations
The next step in the process, according to a large portion of the entrepreneurial community, is find yourself a mentor. You will want to build support for your idea through others who also have experienced the entrepreneurial cycle. These people will know what it really takes to succeed in your own business and give you insights into your decision making. However, mentors will seldom work with you if you don't have your business plan written.
Once you have completed your business plan, you may want to contact some organizations to network with others who have also started their own business, as well as to find yourself a mentor:
- Students in Free Enterprise - A nonprofit organization that gives students the tools to learn the free enterprise system in a real working situation.
- Collegiate Entrepreneurs Organization - a student entrepreneurial association provides leadership training, professional development and commitment to the discipline of entrepreneurship.
- TiE - an organization chartered by entrepreneurs, corporate executives and senior professionals with roots or interest in the Indus region, with the explicit goal to benefit all entrepreneurs.
- National Small Business Association - the nation's oldest bipartisan advocate for small American businesses.
- Counselors to America's Small Business - Dedicated to encouraging the formation, growth, and success of small business nationwide through counseling and mentoring.
- National Association for the Self-Employed - Resource for the self-employed and micro-businesses (up to 10 employees), providing a broad range of benefits and support to help the smallest businesses succeed.
- U.S. Small Business Administration – SBA provides information and resources designed to help people start and run their business. Helps one locate regional offices and local offices. Also provides nationwide calendar of events, current reports, issues and news programs, laws and regulations, and more. Since its founding on July 1953, the U.S. Small Business Administration has delivered about 20 million loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses.
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Financing
"My partnership receives 3,000 business plans a year. With 10 partners, that works out to be about one a day per person. We read all the plans, whether they come in by e-mail, conventional mail or someone walks up to our doorstep. About 300 a year get a face-to-face meeting. One hundred get a second meeting, and 30 or 40 we will fund." John Doerr, probably the best-known and most successful venture capitalists in the world, a backer of Netscape, Amazon.com, the Excite portal and scores of other Internet companies. Quoted in Newsweek Special Issue, June 2000, Riding High.
At some point you likely will raise money from a large venture capital firm, but it won't be the first financing you receive. Most VC firms today won't make investments less than $3 million to $5 million. You will need to find an "angel" investor. The term angel comes from the practice in the early 1900's of wealthy businessmen investing in Broadway productions. Today angels typically offer expertise, experience and contacts in addition to money. Less is known about angel investing than venture capital because of the individuality and privacy of the investments; but, the Small Business Administration estimates that there are at least 250,000 angels active in the country, funding about 30,000 small companies a year.
To find angel investors, tell everyone you know and everyone you meet what you are doing. Talk to anyone who may deal with startups, such as lawyers, PR firms, your family, accountants, and marketing consultants. Some tasks angels may partake in with you include: making business development contacts, finding executive position candidates, and negotiating lucrative contracts.
You will need to take into consideration a number of issues during the funding process. Investors will want to see your commitment - tell them you quit your job if you did. Be open and trusting but conscious of increases in risk. You will need to learn how to balance disclosure with protection of sensitive information. Pay attention to their listening skills. Gauge their positivity and enthusiasm for your idea. Research your funding sources - check references and speak with other entrepreneurs who have previously worked with the investor. Approach at least a few potential investors, a little competition is healthy.
- DowJonesVentureOne - Brings together promising entrepreneurs and leading members of the venture capital community.
- Garage Technology Ventures - Assistance in obtaining seed level financing, mentoring and a high-quality investor network, expert advice, research and reference materials, and topical forums to help launch and grow startups.
- Business Financing - Submit your business's vital statistics here and the free search engine will try to match you up with potential investors. Learn about the process and lingo of venture capital.
- Technology Funding - Manager of public venture capital funds in the United States.
- National Venture Capital Association - Trade association representing the U.S. venture capital industry. It is a member-based organization, which consists of venture capital firms that manage pools of risk equity capital designated to be invested in high growth companies
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Government/Legal
When organizing a new business, one of the most important decisions to be made is choosing the structure. Factors influencing your decisions about your business organization include: legal restrictions, liabilities assumed, type of business operation, earnings distribution, number of employees and tax ramifications.
Determining the advantages and disadvantages of a sole proprietorship, partnership or corporation structure for your business is imperative to your business plan.
Use the following resources to assist in your research:
- Internal Revenue Service Small Business Corner - Department of the Treasury.
- Department of Labor - U.S. Small Business
- Administration - Dedicated to providing customer-oriented, full-service programs and accurate, timely information to the entrepreneurial community.
- Department of Commerce
- Business.gov – The official business link to the U.S. Government. This site guides you through government rules and regulations and provides access to services and resources to help you start, grow, and succeed in business.
- U.S. Securities and Exchange Commission
- American Small Business Alliance - National, non-profit, education driven group that works to shape public policy for the benefit of solo entrepreneurs and small business owners.
- Find Law - Internet legal resources, special section for small businesses including: formation, finance, employment, legal and operations.
- Free Advice - Legal information including business law and starting a business.
- Incorporate - Information on how to incorporate in 50 states.
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Entrepreneurial News
In today's rapidly changing economy, growing companies face both uncertainties and possibilities. Whoever emerges victorious, one thing is clear: Those who refuse to recognize the new realities will be buried by them.
The following are links to keep you informed of constant changes in your field:
- Inc. - Provides hands-on advice, case studies, and big-picture overviews on the state of small business in the United States.
- Fortune Magazine - Market and business news updated throughout the day, feature columns and screening tools.
- Business Week - Features from the current issue of Business Week, and archives of past articles including daily news, investor news, and information on careers and schools.
- Business 2.0 - Provides focused reporting on what's working and what isn't, an indispensable tool for business.
- Ecommerce Times - Information about doing business online.
- Smart Money - The Wall Street Journal Magazine of personal business.
- Fast Company - Electronic new business magazine.
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NU Entrepreneurs
The Technology Innovation Center (The Incubator) - The Technology innovation Center (TIC) is a business incubator dedicated to supporting the growth of very early stage technology-based businesses. An extremely entrepreneurial business environment that fosters collaboration and sharing among young companies, while respecting the independence and self-reliance that motivates entrepreneurs.
Northwestern University offers a number of student organizations dedicated to entrepreneurship. Review the following directories for related organizations.
Additional Resources
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