Picture a bleak railhead on the Nebraska prairie in 1868. It’s Saturday evening, the end of another backbreaking week, and a hundred or more tired rail workers trudge home to the Union Pacific work train. History will praise them as heroes who laid the first transatlantic railroad and built a nation, but right now, they’re just worn-out “gandy dancers” – Civil War vets from both sides, immigrants from Ireland and Germany, and others – all licking dust dry lips and nursing blistered toes. Nothing to look forward to except another plate of beans at the cook car, and a meager week’s pay and nothing to spend it on…

But then… up ahead there’s a sight that quickens their step…

Someone has hauled in a wagonload of whiskey. It’s old Joe… the guy who quit the crew last month and headed back to Omaha. Said he had a better idea. Now he’s somehow gotten the bosses to let him set up shop right here at the railhead. He’s laid a couple of planks across two whiskey barrels and started selling drinks for a quarter. In a matter of minutes the first barrel is empty, and Joe’s pockets are bursting with coins and IOU’s. Joe’s Railhead Saloon is well on its way to success…

Today, the descendants of those hard-working railroad hands remember them through faded sepia photographs and newspaper clippings. What about Old Joe’s descendants? Well, they now own and operate one of the biggest department store chains in the country.

This, of course, is an invented story… but you could find hundreds of factual ones just like it throughout history. It’s the entrepreneurial spirit in action.

What is The Entrepreneurial Spirit?

The entrepreneurial spirit is the quality that separates one worker with guts and an idea from a throng of steady plodders. It’s the restless spirit that makes a man like old Joe yearn to break free from the endless daily grind and be his own man. To lie awake at night and dream of a product that everyone wants but no one has… and then give up a steady job and risk his life and fortune to deliver that product.

Are you tired of “workin’ for the Man both night and day?” Are you willing to step out from the crowd and be your own boss? Are you ready to give up the security of a steady job for the risky rewards of starting your own business?

If so, then you have the entrepreneurial spirit.

Improving Your Odds

Starting and owning your own small business can certainly be risky. And it’s not for everyone. Many – some say most – new small businesses fail. But if you’ve got that risk-taking gene… if you have an idea that won’t let you go… if you really want to find a better way for yourself and your family, starting a business can be one of the most rewarding ventures you’ll ever experience.

So how do you decide to make the leap? What are the factors that determine success or failure? What can you do to avoid costly mistakes? Start by asking yourself a few questions:

Am I a self-starter? Am I a hard worker, and am I willing to work just as hard for myself? Do I like people, and can I lead others? Can I make decisions? What about responsibility? Does it overwhelm me? And do I have the ability to stick with it for the long haul?

And perhaps most important, do I want it bad enough? Running a business can wear you down. Business owners often feel burned out, because they carry all the responsibility on their shoulders. Be aware that sometimes only your own strong motivation can keep you going, through tough reverses and scary slowdowns.

Next, think about the idea itself:

What kind of business should I start? There’s no right or wrong answer for this one, but your experience is the most important thing to consider. Start a business in your own field of expertise, and you’ll be able to build momentum quickly. What’s more, your experience may help you to avoid costly mistakes. Or choose a closely related field where you can build on what you’ve already done (selling cars, after all, isn’t all that different from selling fire alarms or stainless steel widgets.) Of course it is possible to succeed in a completely different field… it all depends on what kind of support you can draw on.

How solid is my idea? Ask yourself: Do I have enough money to get my idea off the ground? Do I have the experience? Can I secure financing? Am I willing to risk losing my shirt – and maybe my kids’ education funds – to get this venture up and running?

Do I have the management skills? Can I develop a workable business plan for marketing this idea and turning it into a viable business? Is there really a demand for my product or service? Have I done the research thoroughly, or have I just assumed that people need or want it?

Similar to the game of chess, starting and running a small business successfully starts with decisive and correct opening moves. Start off right, and you’re well on your way to success. But make a wrong move early, and you’ll have to work extra hard to bounce back.

•             Why Small Businesses Fail — and How Not To

A recent study conducted by the Small Business Administration looked at reasons for small business failure in the US, and they can be summed up in a few sentences. First and foremost there was no planning. Secondly, there was not enough money set aside. Additional reasons businesses failed were, no foresight, and no experience in the chosen field.

Given these reasons, it is obvious that most failures involve not external forces like recession, but internal things like attitudes, habits, strengths, and weaknesses.

So the keys are deceptively simple: Examine yourself. Examine your idea. And do your homework thoroughly. There is no way to guarantee success, but by following these keys – along with the steps outlined in the following pages – you can improve your chances to become the next “Old Joe”…

And that’s why I wrote this book.