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Lifestyle Entrepreneurs - Statistics for Next Generation Leaders

Lifestyle Entrepreneurs are entrepreneurs who all have something in common.

They believe that their lifestyle is as important as financial results. They stay motivated and focused in their business because they truly love what they are doing. They keep the balance in life and work and reap the rewards by helping others. They are becoming the next generation of leaders in a world with a growing numbers of entrepreneurs.

Fast Growing Trends in Entrepreneurship
According to a recent article by P. Hise (Fortune, 2007) the U.S Small Business Administration, SBA, had found that nearly 675,000 new companies were formed in 2005. At the same time, the Bureau of Labor Statistics concluded that the first half of 2006 saw more businesses being created than the first half of 2005.

Talking about a fast growing trend...

Yahoo Media Relations last year released a study in which it was found that 75% of the people interviewed wanted to start a company someday. About 50% wants to do so in the next five years. "The survey results suggest that entrepreneurial aspirations are rooted among the vast majority of the American public." according to the report.

Small enterprises generate a staggering 60 - 80% of new jobs... This is according to data from the U.S. Census published by SBA. The Kauffman Center for Entrepreneurial Leadership has published that in 2005, about 460,000 people created small business every single month. It was also found that more than one third of highest tax paying individuals are business owners including owners of big private corporations.

To summarize: there were more businesses created than children were born per month in the year 2005 (CIA World Factbook).

Small entrepreneurs pay over 50% of the total of income taxes. This result was found by the not for profit Tax Foundation and recently quoted in an article by P. Hise (Fortune, 2007).

Why Are People Starting Their Own Business
"Control of Destiny" - The level of security in a startup business is not so much lower than it is in the traditional world. Challenger Gray & Christmas has found in a recent review that convential perks and job security offered by traditional corporations are gone. It's a sad fact that over 70,000 people are being laid off every single month which is a huge increase from the 30,000 just a couple of years ago. Even top executive positions reserved for people who have been working extremely hard to finally get there are no longer secure. Even a multi million-dollar parachute cannot replace the damage the long years of living an imbalanced lifestyle did to their health and relationships.

Capital - A second factor has to do with the way small businesses are easy to capitalize. Money is readily available. This view is supported by a leading Venture Capitalist, National Venture Capital Association, who estimated that initial funding for new ventures nearly doubled in 2005, expectations are that will increase with another 100% again over 2006.

Small business really is Big Business nowadays!

Who is Entrepreneuring?
Unexpectedly, based upon research concluded by Robert W. Fairlie from the University of California who studied data from the U.S. Census and related sources, the largest share of new business starters is represented by people over 45 years old: about 65%. Entrepreneneurs in age group 20-34, however, are catching up fast since 4 years. Further investigation of date provided in the same report reveals that 30% of entrepreneurs are actually people without education levels any higher than high school (2005).

It is a sad fact that about 33% of all companies fails within 2 years. This is a percentage that has been used in the investment community as a rule to work with. On the top of the list of problems: misaligned leadership and market focus.

Entrepreneurial Leadership becoming a Key Factor
1- We can see that a lot of people who are starting as an entrepreneur have plenty of working experience and seem to fall in the age category of the Babyboomers.
Just imagine all these people coming out of a job situation nowadays. If that is all they have been doning their entire life, they need help. Not only with the setup but mostly with their mindset and attitude to personal responsibility. Here is the opportunity for the leaders in this field: provide the experience and information to make them successful as well. To move from an 'entitlement mentality' to becoming self-reliant is the topic of a best-seller by Trump and Kiyosaki: Why we want you to be rich.

2- Secondly, many people seem to be starting a business without education. Same thing. They most likely can benefit from simple, proven, easy to learn methods to get their business up and running.

Just imagine, if you establish yourself as a leader in this field you will be able to contribute meaningfully to many people's life as long as you live! How great is this, how rewarding, and how different from slaving away in an office cubicle until you reach your future retirement age of 70... If you believe with me that there is something greater than cash, I am convinced that this is what gets me motivated.

How Business Burns
I decided to use the following analogy when training new entrepreneurs to get started:

View your businesses like small fire producing the heat to drive an engine generating revenue for you from output. A system working according to fixed rules.

There are 2 variations:
Either you provide the engine (your new business idea supported by a business plan) or you use a readily set up engine that has been proven to work for your purpose (revenue generation). In the latter case, all you do is set it up, start the fire and keep it going.

A business needs 3 primary ingredients in balance to produce revenue:
1. Cashflow (the fuel) - have enough available to keep your business going without having to scale it down too much risking the engine to stop.
2. A steady flow of fresh leads (the oxygen). Keep finding people who will benefit from the output of your business. Like oxygen, customers are everywhere.
3. The passion (the heat) - Do something that is meaningful to you and to others and be passionate. Network with like-minded people to share ideas and thoughts. Join a business forum and get plugged into training programs.

Successfull lifestyle entrepreneurs maintain a balanced focus. They pay attention to the right combinations in business and in life. They keep the fire burning naturally and enjoy the rewards, the lifestyle and the joy.

Have a great day!

About the Author: Lifestyle Entrepreneur since 4 years. Fully committed to coaching others and giving them access to everything I know.

Many years successful as business development executive for various international corporations. Got tired from inefficiency and office politics.

Already helped many people finding their path in life and work situations with concrete jobs, opportunities and experience I've learned along the way.

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