Released June 17, 2008

STILLWATER, Okla. – Ask your neighbor, your co-worker, even ask yourself –are you interested in starting your own business? Chances are the answer to that question will be yes.

Glenn Muske, Oklahoma State University Cooperative Extension Service interim associate dean, assistant director, family and consumer sciences, said more than 50 percent of Americans indicated they want to start their own business. This answer rises to more than 75 percent when asked of high school seniors and college students.

“Our economic growth depends on having a continuous supply of new business owners who are trying to capture the American dream,” Muske said. “A growing economy will increase its number of businesses by approximately 3 percent each year.”

While the path a business follows relies on many important variables, there are three basic items that all successful businesses owners must have – passion for the business, realization about the market and innovation.

First, the owner must have a passion for the business he or she selects. Muske said most owners should select a business that they can see themselves working in 24 hours a day, 365 days a year.

“Developing a successful business is hard, but trying to develop one without ‘loving’ what you are doing makes it harder to work when it seems like everything is falling apart,” he said.

Second, the prospective owner must be realistic about the market. The two questions they should ask themselves: Is there a market for my product and if so, who is that market? The bottom line on marketing is “will the market pay at a level that the owner can make a profit?”

Muske said being in a business is about trying to make a profit. Without the key ingredient, the owner should realize that instead of a business, they may be subsidizing their hobby.

The third requirement, innovation, can help the business turn the corner from failure or just staying alive, to that of a successful, growing enterprise.

“Being innovative is what makes you stand apart from the competition,” Muske said.

One can be innovative by offering a product or service unlike the competitors. Small business owners have a distinct advantage here in that they often know who their market is and they can quickly and easily fill a niche market that larger competitors ignore, do not find profitable or simply cannot respond to quickly enough.

“Selling a new product or service to what is then a new market is the hardest point-of-entry for a new business,” he said. “It is far easier and offers a much higher degree of success to add something to an existing product that excites the market.”

A second way to start a business is to sell a successful product or service to a new market.

Oftentimes owners respond that there is nothing new that can be added to a product or service. Muske said this does not mean the business cannot be innovative.

“Many small business owners are innovative simply in their business practices,” he said. “We have all heard about the business owner who can’t compete on price, but no one else can match their service.”

Businesses are also using innovative giving as a way to set them apart from their competitors. This may be through a sponsorship or giving employees paid time off for volunteer work or joining with a service agency to enhance a program they offer.

Muske said whatever method is selected, it is best if the giving reflects what the business itself offers.

“Giving books to a young readers club works better if you own a book store,” he said. “Whatever is selected, keep the project manageable in size and spread out over a period of time.”

These suggestions may help the owner from over-committing time, since the overall job is to run a successful business, it also gives the owner more possible public relations opportunities, Muske said.

If you are interested in becoming a business owner, contact your local OSU Cooperative Extension Service office, usually located under “local government” in the phone book. They will have the materials to help you get started.

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http://www2.dasnr.okstate.edu/Members/katie.reim-40okstate.edu/do-you-want-to-start-your-own-business

Contact: Katie L. Reim, (405) 744-6792, katie.reim@okstate.edu