businesses. But I’ll save the rest of Mike’s story, too, for later in the book.
Even though the stories of Paul Orfalea and Mike Ilitch sound incredible, they are typical of the stories you’ll find in this book. They are typical, in fact, of business stories everywhere. I know because I started Subway with $1,000. My story shares many similarities with the stories of Paul, Mike, and the others who you’ll soon meet. We all started with small amounts of money, and my overall message in this book is that you, too, may be able to start small and finish big.
At any given moment in the world millions of people are thinking about starting a business. They are people like you and me, motivated by the desire to be their own boss and to become financially independent. Some want the freedom and the flexibility of self-employment. Others want to make more money, and some are tired of making money for others. Some have lost their jobs, some are about to lose their jobs, and many others are simply tired of their jobs. A business of their own, frightening though it may be, sounds like a logical next step. An exciting next step. If only they can get started.
For most of these millions of people, starting a business will remain merely a dream, locked in the depths of their hearts and minds. It’s something to think about. Something to talk about around the kitchen table, especially with family and friends who share similar dreams. Unfortunately, few take the first bold step to actually start a business. Few can muster the energy and commitment to begin.
Why?
For a variety of reasons, all of which may be valid. They think they don’t have the capital. They think they lack the experience. They think they don’t have the education, or they don’t know how. They don’t feel confident with their plan. They think they need money to make money. And, perhaps more often than not, they never start because a family member or friend told them they couldn’t do it: “You’d be crazy to try...play it safe and stick with your job. So what if you’re miserable. At least you get a paycheck every week. Small businesses never amount to much of anything anyway.”
Does it sound familiar?
Are you among the millions of people who think about starting a business, but you just never get started? If you are, you’ll be glad you read Start Small, Finish Big. The lessons and messages in this book are especially for you.
Around the world, and especially in the United States, there are plenty of people like Paul Orfalea and Mike Ilitch who start tiny businesses with less than $10,000 (frequently much less). We call these enterprises microbusinesses, the people who start them microentrepreneurs, and the organizations that loan them start-up money microlenders. These are important concepts to me. Microentrepreneurs are frequently overlooked simply because their businesses are tiny, but many of them contribute significantly to the American economy, and to several economies worldwide. Not to mention the fact that many microentrepreneurs generate sizable personal incomes, and they build businesses that can be kept in the family, or sold as valuable assets. I, for one, plan to do all that I can to focus attention on the phenomenon of microenterprise, and you’ll learn more about my interests as you read this book.
Since the beginning of time, people have started businesses with small amounts of money. They begin modestly, without fanfare and often without great expectations. Today, no one knows for sure how many microbusinesses exist or how many are started each year, but the U.S. Small Business Administration reports that first-time entrepreneurs are responsible for 60 percent of business start-ups. Furthermore, the National Federation of Independent Business reports that people under the age of thirty-five launched 1.9 million businesses in 1996, representing nearly half of the businesses started in the U.S. that year. Three quarters of these young entrepreneurs started from scratch, with almost nothing!
Microentrepreneurs come from all walks of life. Male and female. People of color. Able-bodied and people with disabilities. Some have business experience, but most do not. Some may be government dependent, but most are not. Some are young—even preteens—and some are old. Many are retired; they start microbusinesses for something to do, or to supplement their income. Microentrepreneurs are as likely to be high school dropouts as they are college graduates. Formal education is of no significance here. Many of them are employed full-time and start their microenterprises part-time. Frequently they work from home, a basement, a garage, or a truck. Some own multiple enterprises. Some work with partners, especially spouses. But most work alone, at least initially. Microentrepreneurs don’t necessarily register their businesses at first, especially if they work from home. They may or may not file for local or state licenses. Most microentrepreneurs, in fact, don’t know they are microentrepreneurs. And they may not even care. They think of an idea one day, and the next day they’re in business. With the exception of their prospective customers, they don’t really have to tell anyone what they’re doing.
In their smallest form, microbusinesses feed families, rescue victims from welfare rolls, and replace shame with dignity. Some microbusinesses are intended to supplement a full-time income, or to pay college tuition, or to buy necessities, or even luxuries that would otherwise be out of reach. Many of these businesses remain small, others expand into regional or national operations, and some become international entities. According to the U.S. Agency for International Development, which supports its own Microenterprise Initiative, microenterprises often employ a third or more of the labor force in lower-income countries.
There are few prerequisites for microentrepreneurs. Basically, they need an idea, a little bit of money, and most importantly the desire to get started. There’s nothing complicated about what they do. You’re not likely to read about them in the newspapers. They don’t announce the start-up of their businesses on radio and television, or even the Internet. They simply start. And regardless of how many people these microentrepreneurs employ initially, how much money they generate annually, or how many locations they start with, they all have the potential to grow and finish big. As big as they desire. Sometimes bigger than they can imagine. More often than most people know, as microbusinesses mature they create dozens, hundreds, and sometimes thousands of jobs, and they generate millions, sometimes billions, of dollars in annual revenues.
In an age of corporate and social downsizing, and in an era when people are moving back to smaller towns to simplify their lives, the day of the microentrepreneur has arrived. Or perhaps, more accurately, it has returned. It’s a new millennium, and the stage has been set for microentrepreneurs. In the years to come, we can expect to see a proliferation of microenterprises worldwide.
Somewhere right now, perhaps in your own community, there’s a microbusiness that’s headed for stardom in tomorrow’s business press. Perhaps it’s your business, or a business that you’re thinking about beginning. If so, I believe you’ve found an important resource in this book.
Conventional wisdom offers little hope to those who dare to try what so many say can’t be done. But Start Small, Finish Big is a book about hope. For those who dare to take the first step beyond just thinking about starting a small business, this is a book filled with ideas and possibilities. It’s a book that helps overcome the excuses. No matter what your situation may be, Start Small, Finish Big provides a boost for those who seek the confidence, guidance, encouragement, and the will to get started, or to persist, in a business.
If you’re reading this book because you want to start your own business, or expand an existing business, here’s what you’re about to learn.
The Fifteen Key Lessons. Based on my personal experiences as a microentrepreneur, and the experiences of twenty-one other microentrepreneurs whose stories are included in this book, I’ll share with you the Fifteen Key Lessons that will help you start small and finish big.
These lessons are:
1. Start Small. It’s better than never starting at all.
