In today’s interview, Information Nation chats with Fred Wehba, a real estate professional and entrepreneur based in Los Angeles, California. Mr. Wehba answers questions about developing a business idea and how to get started being your own boss.
Information Nation: Thank you for joining us today.
Fred Wehba: I am very happy to do it.
Information Nation: Let’s get started, shall we? We’d like to talk to you about how to develop a business idea.
Fred Wehba: I’ll be happy to answer any questions you may have.
Information Nation: What are some reasons a person may start their own business?
Fred Wehba: People choose to work for themselves for a variety of reasons. Some because they don’t agree with the general state of the industry they are in. Others want to work their own hours. Many talented people have a unique product or service they want to focus on.
Information Nation: Like what?
Fred Wehba: Software programs, handmade items, child care services…
Information Nation: How do I launch a business that is capable of sustaining a livable income for my family?
Fred Wehba: That depends on you, your definition of livable, and what you are willing to sacrifice to make your dream a reality.
Information Nation: So, once I have a business idea, what’s next?
Fred Wehba: Many people mistakenly believe that the idea alone is enough to create success. This could not be further from the truth! Great ideas often fail because they are not properly developed.
Information Nation: How do I develop my idea into a successful business, then?
Fred Wehba: Obviously, you’ll need to determine the type of business you want to own. Next, you may want to call in an accountant to perform a break-even analysis. This is a comprehensive review of your industry niche, anticipated start up costs, and potential profit.
Information Nation: Do I really need to write a business plan?
Fred Wehba: Writing a business plan is absolutely vital if you wish to obtain financing. Even small business owners who plan to fund operations out of pocket can benefit from writing a business plan to help them fully comprehend all that goes into owning their own business.
Information Nation: How does one decide upon a legal structure?
Fred Wehba: First you want to identify how many people are actually considered owners/partners of your business. You also want to consider how much personal liability you’ll need to guard against.
Information Nation: Should I have my business traded publicly?
Fred Wehba: Obviously, small at-home businesses are not typically put up for stock purchase. However, if it’s a large venture and you need the capital, it may be worthwhile to do some research regarding stock sales.
Information Nation: What type of ownership structures are there?
Fred Wehba: There are partnerships, S and C corporations, limited liabilities, single ownership… This is actually a much trickier question than most people realize.
Information Nation: What about marketing? Should I do my own?
Fred Wehba: That depends on your situation, availability, and skills. Many large companies choose to hire individuals dedicated to marketing a product or service. Small companies, such as a handyman or housecleaning service, may choose to market on their own through social media or print.
Information Nation: What is the best way to choose a business name?
Fred Wehba: You may want to start with the name that is somehow related to your business. Typically, you want your name to signify how you want people to view your services. Make it simple and easy to remember.
Information Nation: Thank you for these insights. It sounds like it can be an interesting road to travel, but one that we are sure is worth it.
Fred Wehba: There is nothing like the feeling of knowing you are in control of your life.