ONLINE COURSE GIVES FREE ADVICE; [Broward Metro Edition]
MARCIA HEROUX POUNDS SMALL BUSINESS ISSUES. South Florida Sun - Sentinel. Fort Lauderdale, Fla.: Aug 16, 2004. pg. 7
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(Copyright 2004 by the Sun-Sentinel) Phil Holland has had a lifelong love affair with being an entrepreneur, even when he made his own mistakes in business and at one point, nearly went broke.
"Entrepreneurs are of a mind-set that is more guts than brains. It's not often they want to hear advice," Holland says.
Holland, now 78, gives his two cents anyway through MyOwnBusiness.org. The Web site offers a free online course for entrepreneurs. Some 70,000 people a month take the course, which is available in four languages.
Operating a business "is simple if you know where the pitfalls are," Holland says. "For those who don't, it's like walking in a minefield."
Holland calls himself "the No. 1 authority on making mistakes." His course is based on lessons learned from the businesses he has owned including the Yum Yum Donut Shops, which became one of the largest privately owned doughnut chains in the United States.
Holland opened his first business, which sold machines to make doughnuts, when he was in his early 20s and later sold it to Pillsbury. But in his mid-40s, he tried to franchise a Mexican restaurant concept. That didn't fare so well. "We didn't know much about Mexican food," Holland explains. "It's a terrible mistake unless you've had personal hands-on experience in a business."
He had moved too quickly with an unproven concept. "Don't try to expand the business until you know that the pilot plan works first," Holland warns.
In 1970, Holland founded Yum Yum Donut Shops in California with just $5,000. In his first year in that business, Holland did everything from making the doughnuts to washing the windows -- something he would advise other business owners to do. "More often than not what can appear to be a great concept does not work in reality," he explains.
He sold his interest in Yum Yum in 1989. After the 1992 riots in Los Angeles, Holland decided to start the nonprofit My Own Business Inc. He held night classes and taught residents how to start a business in the nearby Compton neighborhood.
But Holland recognized his lessons could reach a larger audience on the Internet. His wife converted two of his books on entrepreneurship into the online lessons.
The 12-session online course helps small business owners avoid common pitfalls. Classes include picking the right business, preparing a business plan, financing, accounting and cash flow, leasing, permits, insurance, marketing, employee training, expanding the business, and e-commerce.
The Small Business Administration at www.sba.gov links to the courses, which are offered in English, Spanish, French and Mongolian, which was requested by the World Bank.
The site is helpful to people who are unemployed and recent immigrants who are looking to start their own businesses, he says.
One way is to start a "moonlight" business while still employed; many people have done so by opening an eBay store. "Start a business in that spare bedroom," Holland says.
Where people often go wrong is the business they choose to start, he says. "If you're going to start a convenience store, for heaven's sake, go to work for 7-Eleven."
Business owners should pay special attention to the lessons on accounting and cash flow, Holland says. "People would think that anyone is crazy if they would play a sport and not know how to keep score."
Holland says it's important for the new business owner to go through the entire online course, not to skip around. "Entrepreneurs can avoid disaster by reading chapters 1, 2 and 3, but may sign a lease that will drown them," he says. "We think each topic is important."
Marcia Heroux Pounds can be reached at mpounds@sun-sentinel.com or 561-243-6650.