Becoming an ACE: Preparing for Future Entrepreneurship in a Down Economy

I am often approached by college students and young professionals who fear the effects that the downturn in the economy will have on their careers. They have looked to entrepreneurship as a key to their future. Unfortunately, like many in the community, without generational wealth, they need to build resources from the ground up to meet this end. They want to start, what I term, a ground business. A ground business is a business that resembles both a small and start-up business by definition but also relies heavily on the creativity and sweat equity of the owner to succeed. For those who envision becoming ground business owners, I tell them the first thing to work on is their financial footing. By following the ACE Principle, they can build a strong foundation upon which to build themselves and their business. These are the focus areas I encourage them to develop.

Assets
Spend on Needs vs. Wants – Now more than ever, it is important to think about the value of every purchase for the long-term worth. Focus on appreciating assets.
Savings and Investments – As a new business owner, you will more than likely be required to invest your own savings and investments, in part or totality to fund your first venture
Life, Liberty and the Pursuit of Property – It is never too early to think about getting your first property. Many business owners leverage property to obtain starting up funding for new businesses.

Credit
Spend on Needs vs. Wants – Follow the same rules on spending as cash. If you can, do without. Building Your Credit – Follow and protect your credit for the day that you may need to use it to start your first business.

Education
Electives/Skills – For those in school, use your electives to gain skills (public speaking, accounting, web development, etc.). College offers electives to make its students more well-rounded and prepapred to achieve their goals. For those out of school find local outlets (i.e…community colleges) to obtain skills.
Organizational Leadership – Many individuals obtain leadership skills from volunteering in non-profit and service organizations. These can add value in ground businesses.
Certifications and Specialized Training – In a competitive market, having a certification or specialized training can set you apart, especially your consultants and contracts. For example, certified Electrical Contractors make 4-5 times that of Electrical Engineers (hint!)

With the proper foundation, future ground business owners can create the resources necessary to compete in our changing economy.

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Delano White is the author of Diary of a Mad Businessman: A Layman’s Guide to Starting a Business from the Ground Up. He can be reached at delano.white@reignmakersincorporated.com. His book can be picked up on amazon.com.