Kate is thinking about starting a small business and is trying to assess the potential opportunities and threats associated with a new start-up. She has talked with friends about her plans, and several have offered opinions and advice. The comments of four friends are summarized below. Which of these statements would probably be the most helpful to Kate?
- Don't worry about your lack of business experience and limited business skills. Entrepreneurs can make up for a lack of skills with enthusiasm and hard work.
- Since your company will be small and new, it's important to impress your customers. Spend a lot of money on upscale offices and state-of-the-art equipment to create a "WOW" factor.
- Find a market segment that you can profitably serve but which is too small to attract larger companies.
- Hang in there. If a business is going to fail, it almost always happens in the first year. If you can stick it out for more than a year, you'll be on your way to success.