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Self-Employment:
From Dream to Reality!
An Interactive Workbook
for Starting Your Small Business
Second Edition
By Linda D. Gilkerson and Theresia M. Paauwe
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Self-Employment: From Dream to Reality!, Second Edition
An Interactive Workbook for Starting Your Small Business
© 2003 by Linda D. Gilkerson and Theresia M. Paauwe
Published by JIST Works, an imprint of JIST Publishing, Inc.
8902 Otis Avenue
Indianapolis, IN 46216-1033
Phone: 1-800-648-JIST
Fax: 1-800-JIST-FAX
E-mail: info@jist.com
Web site: www.jist.com
Note to instructors. Support materials are available for Self-Employment: From Dream to Reality!, Second
Edition. An instructor’s guide published by JIST Works contains helpful guidance and many activities
and assignments that can be used for adults. Call 1-800-648-JIST or visit www.jist.com for details.
Coauthor Theresia Paauwe is available to “train the trainer” and sells a comprehensive trainer’s manual.
Visit her Web site at www.BusinessMattersTR.com for details.
About career materials published by JIST. Our materials encourage people to be self-directed and to
take control of their destinies. We work hard to provide excellent content, solid advice, and techniques
that get results. If you have questions about this book or other JIST products, call 1-800-648-JIST or visit
www.jist.com. For information on 14,000 job titles, visit www.careeroink.com.
Quantity discounts are available for JIST products. Please call 1-800-648-JIST or visit www.jist.com for
a free catalog and more information.
Visit www.jist.com. Find out about our products, get free book excerpts, order a catalog, and link to
other career-related sites. You can also learn more about JIST authors and JIST training available to
professionals.
Acquisitions Editor: Susan Pines
Development Editor: Stephanie Koutek
Cover Designer: Trudy Coler
Interior Designer: Aleata Howard
Page Layout Coordinator: Carolyn J. Newland
Proofreaders: Jeanne Clark, David Faust
Indexer: Larry Sweazy
Printed in the United States of America
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All rights reserved. No part of this book may be reproduced in any form or by any means, or stored in a data-
base or retrieval system, without prior permission of the publisher except in the case of brief quotations
embodied in articles or reviews. Making copies of any part of this book for any purpose other than your own
personal use is a violation of United States copyright laws.
We have been careful to provide accurate information throughout this book, but it is possible that errors and
omissions have been introduced. Please consider this in making any career plans or other important decisions.
Trust your own judgment above all else and in all things.
Trademarks: All brand names and product names used in this book are trade names, service marks, trademarks,
or registered trademarks of their respective owners.
ISBN 1-56370-922-8
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What Makes This Book Unique
Self-Employment: From Dream to Reality!, Second Edition, is unlike any other book
about starting your own business. What makes it so unique?
It is an interactive workbook full of helpful worksheets and exercises that get
you involved in decision-making and show you examples of many aspects of
running your business.
It is based on the authors’ proven self-employment training course and on their
experiences as small business operators. You learn small-business basics through
a tried-and-true approach taken by thousands of other would-be entrepreneurs.
It is just right for first-time entrepreneurs. You learn what it takes to succeed in
easy-to-understand language and without getting bogged down in hundreds of
pages of detail.
You can turn your dream into reality. Let this workbook show you how.
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Table of Contents
Introduction ....................................................................................................................1
Chapter 1: The World of Business ................................................................................3
Do You Have What It Takes? ..............................................................................................................4
Business Failure ..................................................................................................................................6
Why Do Businesses Fail? ....................................................................................................................6
Planning Your Business Is Critical ....................................................................................................8
Your Best Bet Is a Business Plan ..................................................................................................8
The Contents of a Business Plan ................................................................................................9
Summing Up......................................................................................................................................11
Chapter 2: Defining Your Dream ................................................................................13
A Good Business for You ..................................................................................................................13
Describing Your Business ..................................................................................................................16
What’s in a Name? ............................................................................................................................18
Identify Your Support Team ............................................................................................................18
Summing Up ....................................................................................................................................19
Chapter 3: Financing the Dream ................................................................................21
A Look at Your Business....................................................................................................................21
Financing 101 ....................................................................................................................................22
The Risky Start-Up ....................................................................................................................22
The Existing Business ................................................................................................................23
The Language of Finance ..........................................................................................................23
Getting a Loan ..................................................................................................................................24
Identify Your Needs ..................................................................................................................24
Develop a Financial Plan ..........................................................................................................25
The Application Process ............................................................................................................28
Get to Know Your Lender ..........................................................................................................29
Personal Credit ..........................................................................................................................29
You’ve Been Approved! Now What? ..........................................................................................30
An Interest in You! ....................................................................................................................31
Summing Up ....................................................................................................................................32
Chapter 4: The Goal Train ............................................................................................33
On Your Mark, Get Set, Goal! ..........................................................................................................33
Know Yourself ............................................................................................................................34
Define Your Values ....................................................................................................................35
Research Your Choices................................................................................................................35
Establish Your Goals ..................................................................................................................35
Create an Action Plan ................................................................................................................36
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