2c:["$","$L2d",null,{"category":"$2e","relatedArticles":[{"id":"cG9zdDoxMjYzNjI=","databaseId":126362,"postId":126362,"author":{"node":{"id":"dXNlcjo5Mw==","databaseId":93,"userId":93,"avatar":{"url":"https://secure.gravatar.com/avatar/04483497dbd73f712b504e401c9c7d22?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Mark Henricks has reported on personal finance, investing, retirement, \r\nentrepreneurship and other topics for more than 30 years. His freelance \r\nbyline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"William","fullName":"Mark Henricks","lastName":"Henricks","name":"Mark Henricks","postCount":{"pageInfo":{"offsetPagination":{"total":776,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"mhenricks","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybToxMQ==","children":{"nodes":[{"name":"Business Insurance","slug":"business-insurance","__typename":"Category"},{"name":"Business Structure","slug":"business-structure","__typename":"Category"},{"name":"Employee Benefits","slug":"employee-benefits","__typename":"Category"},{"name":"Other","slug":"other-small-business","__typename":"Category"},{"name":"Raising Capital","slug":"raising-capital","__typename":"Category"},{"name":"Regulations","slug":"regulations","__typename":"Category"},{"name":"Taxes","slug":"small-business-taxes","__typename":"Category"}],"__typename":"CategoryToCategoryConnection"},"databaseId":11,"categoryId":11,"link":"https://smartasset.com/small-business/articles","name":"Small Business","postCount":{"pageInfo":{"offsetPagination":{"total":13,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"small-business","ancestors":null,"parent":null,"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$2f","date":"2020-10-30T07:22:17","excerpt":"

\n","featuredImage":{"id":"cG9zdDoxNzIzMjQ=","databaseId":172324,"altText":"Serial Entrepreneur","date":"2022-11-08T17:35:27","fileSize":32995,"mimeType":"image/jpeg","modified":"2022-11-08T17:35:27","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2020/10/portrait-of-handsome-indian-guy-with-laptop-picture-id902440746.jpg","__typename":"MediaItem"},"modified":{"datetime":"2023-3-21","readable":"March 21, 2023"},"multipleBylinesByRole":{"editedBy":null,"reviewedBy":null,"writtenBy":null,"factCheckedBy":null,"secondEditor":null,"hideAuthor":null,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/small-business/serial-entrepreneur","metaDesc":"A serial entrepreneur is a person that regularly starts new businesses through a series of their own consistent ideas. These business can fail or be sold.","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":4,"title":"What Is a Serial Entrepreneur? - SmartAsset","__typename":"PostTypeSEO"},"slug":"serial-entrepreneur","status":"publish","title":"What Is a Serial Entrepreneur?","uri":"/small-business/serial-entrepreneur","tags":{"nodes":[],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":{"id":"dXNlcjo5Mw==","databaseId":93,"userId":93,"avatar":"$30","description":"Mark Henricks has reported on personal finance, investing, retirement, \r\nentrepreneurship and other topics for more than 30 years. His freelance \r\nbyline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.","additionalMeta":"$31","email":null,"firstName":"William","fullName":"Mark Henricks","lastName":"Henricks","name":"Mark Henricks","postCount":"$32","slug":"mark-henricks","__typename":"User"},"editedBy":null,"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybToxMQ==","children":"$35","databaseId":11,"categoryId":11,"link":"https://smartasset.com/small-business/articles","name":"Small Business","postCount":13,"slug":"small-business","ancestors":null,"parent":null,"__typename":"Category"},"isModifiedBeforePublished":false,"contentBlocks":["

The term “entrepreneur” is essentially synonymous with being a business owner. However, a serial entrepreneur takes things to the next level, as they often start many businesses in a row, regardless of if they’re successful or not. Some highly successful businesspeople are serial entrepreneurs, like Elon Musk. Startups organized by serial entrepreneurs are also generally regarded as attractive opportunities by knowledgeable venture investors.

","

Do you have questions about the finances it takes to start a business? Speak with a financial advisor today.

","

What Is a Serial Entrepreneur?

","

It’s not uncommon for people to start businesses, experience failure and then try again. A serial entrepreneur is generally seen as a different sort, though, as they often have a track record of starting multiple successful enterprises.

","

Serial entrepreneurs start several businesses one after another rather than beginning one venture and staying focused on it for many years, like a more typical entrepreneur. They may also sell their businesses after they reach a certain level of maturity. They may retain ownership while delegating day-to-day managerial responsibilities to other people. Or, if the business is underperforming, they may close it down and move on to the next idea.

","

There is no standard number of businesses that someone has to start to be considered a serial entrepreneur, but three may be a minimum. Nor do all the businesses have to succeed or produce profits. However, most people regarded as serial entrepreneurs have at least a couple of significant and enduring successes to their credit.

","

Pros and Cons of Being a Serial Entrepreneur

","

While each startup has unique characteristics, the process of beginning a new business does have some steps that are common to most if not all entrepreneurial ventures. Serial entrepreneurs learn from experience, sometimes the hard way by making mistakes, how to get an idea for a business in motion and off the ground. Along with developing skills, they acquire contacts among investors, talented employees and others who can help them with the next enterprise.

","

Venture capital investors have expressed a preference for backing companies founded by serial entrepreneurs because of the value the experienced startup leaders bring. This preference isn’t only for serial entrepreneurs whose past startups have all been successes. Failure can be a good teacher, according to this viewpoint, and past failure can pave the way to future success.

","

The practice of serial entrepreneurship can come with some limitations and risks as well as benefits. For one thing, a serial entrepreneur who builds and sells a startup that later achieves great success can miss out on the chance to acquire great wealth by cashing out too soon.

","

Another risk is that soon after starting a business a serial entrepreneur will be distracted by an idea for a new startup. That may lead the entrepreneur to fail to pay enough attention to the first business so that it flounders and is unsuccessful.

","

Examples of Serial Entrepreneurs

","

Many high-profile entrepreneurs have come to attention because of their long-term association with a single startup. Microsoft co-founder Bill Gates, who is not thought of as a serial entrepreneur, is an example of one of these. However, serial entrepreneurs have a special way of gaining public attention because of their repeated, sometimes spectacular, successes in a variety of fields.

","

One of the best-known serial entrepreneurs is Richard Branson, who has begun hundreds of ventures in fields from airlines to soft drinks, all under the Virgin label of his first company, a mail-order record firm. Many of Branson’s new companies have been folded after failing to achieve traction. But Branson’s multiple wins in such diverse fields is one matched by few other serial entrepreneurs.

","

Oprah Winfrey is another serial entrepreneur who parlayed an early success into the foundation of a diverse empire, this one focused on media. Winfrey has started prominent players in television production, cable television and magazine publishing.

","

A more recent arrival to the scene, Elon Musk, began as a web software entrepreneur, moved to online financial services and has since been upending industries from tunnel construction to space transport. However, he joined Tesla, the electric car company that may be his most prominent venture, after it was founded.

","

Bottom Line

","

Serial entrepreneurs go from one idea for a new business to the next, starting companies and then selling, closing or delegating them to others to manage. While their track record may not be one of perfect repeated success, their hard-won experience and demonstrated diligence makes serial entrepreneurs attractive to some new venture investors.

","

Tips for Entrepreneurs

","

","$3e","

Photo credit: ©iStock.com/Drazen_, ©iStock.com/svetikd, ©iStock.com/Chaay_Tee

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As a small business proprietor, you probably enjoy moving to the beat of your own drum. But doing everything on your own might not get you very far. Some of the most successful business owners have strong support systems. Regardless of whether that support comes from family or friends, having someone in your corner can give you the confidence you need to make bold moves.

","

Check out our investment calculator.

","

What Is a Support Network?

","

Your support network can be made up of a lot of different kinds of people and not all of them have to be relatives or close friends. You can rely on people you have professional relationships with as well, including investors, employees, former business partners and suppliers whose own businesses keep yours moving.

","

Regardless of who you have in your circle, it might be a good idea to have a diverse bunch that you can turn to for advice. Having a variety of outlooks and perspectives to pull from can benefit you and your company.

","

While it’s important to surround yourself with people who can support you and cheer you on, it doesn’t hurt to have relationships with people who aren’t afraid to criticize you and who won’t hold back.

","

What Can a Support Network Do for You?

","

","

Having a dedicated group of people who support you can be helpful in many different ways. Besides giving you guidance and insight, your supporters can help bring in new customers by telling others about your company and making referrals.

","

The people in your support network can also act as your sounding board if you have new ideas about ways to run your business. If your marketing campaign for your new business fails to capture the attention of the people who are close to you, it probably won’t interest total strangers or potential customers either.

","

How Do You Maintain a Support Network?

","

","

Here’s the hard part: Getting the support you need often involves swallowing your pride. To build a network you have to accept that you don’t always know what’s best, even when it comes to running your own small business.

","

If you have people you can lean on, it’s important to be open and honest with them. There’s no need to overshare. But just like at the doctor’s office, the people who support you can’t help you if you won’t admit what’s wrong or own up to bad habits.

","

When it comes to your employees, it’s important to listen to their concerns. They’re on the front lines of your business and can be the proverbial canaries in the coal mine by diagnosing problems you might not have known existed.

","

Finally, it’s best to show appreciation whenever someone offers you advice. Whether that involves doing someone a favor or just saying thank you, it’s a good idea to make it clear that you’re grateful for the support you’ve received.

","

Photo credit: ©iStock.com/SrdjanPav, ©iStock.com/shironosov, ©iStock.com/Vesna Andjic

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\n","featuredImage":{"id":"cG9zdDoxODM3MjI=","databaseId":183722,"altText":"Businesswoman working at her desk","date":"2023-01-20T02:01:48","fileSize":43366,"mimeType":"image/jpeg","modified":"2023-01-20T02:01:48","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2020/11/businesswoman-working-at-desk-in-warehouse-picture-id177802203.jpg","__typename":"MediaItem"},"modified":{"datetime":"2023-8-20","readable":"August 20, 2023"},"multipleBylinesByRole":{"editedBy":null,"reviewedBy":null,"writtenBy":null,"factCheckedBy":null,"secondEditor":null,"hideAuthor":null,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/small-business/sba-8a","metaDesc":"The SBA's 8(a) Business Development Program provides financial assistance to small businesses with owners who are economically or socially disadvantaged.","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":5,"title":"What Is the SBA 8(a) Business Development Program? - SmartAsset","__typename":"PostTypeSEO"},"slug":"sba-8a","status":"publish","title":"What Is the SBA 8(a) Business Development Program?","uri":"/small-business/sba-8a","tags":{"nodes":[],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":{"id":"dXNlcjo5Mw==","databaseId":93,"userId":93,"avatar":"$4d","description":"Mark Henricks has reported on personal finance, investing, retirement, \r\nentrepreneurship and other topics for more than 30 years. His freelance \r\nbyline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.","additionalMeta":"$4e","email":null,"firstName":"William","fullName":"Mark Henricks","lastName":"Henricks","name":"Mark Henricks","postCount":"$4f","slug":"mark-henricks","__typename":"User"},"editedBy":null,"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybToxOTU0Mg==","children":"$52","databaseId":19542,"categoryId":19542,"link":"https://smartasset.com/regulations/articles","name":"Regulations","postCount":2,"slug":"regulations","ancestors":"$54","parent":"$57","__typename":"Category"},"isModifiedBeforePublished":false,"contentBlocks":["

The 8(a) Business Development program is a Small Business Administration initiative designed to level the federal government contracting playing field for small business owners who are socially and economically disadvantaged. Qualifying businesses can compete for contracts that are set aside specifically for members of the program. They also can get help from SBA experts on submitting government contract bids, connect with mentors and tap other helpful resources. If you have a business, consider working with a financial advisor to make sure your personal and business finances are in order and your interests are protected.

","

What Is the 8(a) Business Development Program?

","

With annual purchases topping $500 billion, the U.S. government is the world’s largest customer. Federal law requires 23% of those orders to go to small business sellers. Other statutory requirements call for the various federal agencies to devote set amounts of their budgets to buying from women-owned businesses, companies owned by service-disabled veterans and others.

","

The 8(a) business development program aims to make sure a fair share of those dollars go to business owners facing obstacles due to economic circumstances, race or ethnic background.

","

8(a) Benefits

","

The benefits of participating in the 8(a) program fall into two main categories. In addition to being able to bid on contracts set aside for them, they can use special SBA resources to help them navigate the government contracting world.

","

The most concrete benefit of 8(a) participation is getting exclusive access to win certain contracts as sole-source providers on government contracts. The sole-source contracts can be worth up to $6.5 million for manufacturers and up to $4 million for sellers of goods and services. For larger contracts, 8(a) participants can band together to form joint ventures and bid collaboratively.

","

The mentoring part of the 8(a) program encourages participating businesses to connect with larger firms so they can jointly bid on contracts that have been set aside for small contractors. The protégé small business can benefit from its mentor’s expertise as well as financial assistance. The mentor gets the green light to bid on contracts that it would not be able to go after without its protégé. Only small businesses that have never gotten a government contract can participate in this program.

","

Small businesses in 8(a) also can be assigned a business opportunity specialist, which is an SBA employee trained to help small contracts. SBA also puts on workshops on marketing, management and other topics for 8(a) businesses. And 8(a) participants can get access to surplus government property, SBA-backed loans and help with surety bonds.

","

8(a) Qualifications

","

","

To participate in 8(a), businesses must first fit SBA’s size standard for a small business. This standard is generally measured by the size of annual revenues or a number of employees. It varies according to the industry the firm operates in, as categorized under the North American Industry Classification System (NAICS). In the case of a manufacturer of office furniture, for example, a firm must have fewer than 1,000 employees to be considered small.

","

Next, the firm must be at least 51% owned by a socially disadvantaged U.S. citizen. This group automatically includes African-Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans and Native Americans. This group also includes those who can show a social disadvantage because of coming from an environment isolated from mainstream American society.

","

Economic disadvantage also has to be shown. These requirements are straightforward. The owner has to have:

","

A personal net worth of $750,000 or less,
Average adjusted gross income for three years of $350,000 or less,
Assets of $6 million or less.

","

Small businesses can apply to participate in the 8(a) program online at the certify.SBA.gov site. Applicants have to include documentation of income, assets and net worth, as well as narratives describing how they have experienced social disadvantage.

","

The 8(a) certification is good for up to nine years. Participants have to submit annual updates to stay in the program.

","

The Bottom Line

","

The SBA 8(a) business development can provide socially and economically disadvantaged business owners with valuable assistance in securing contracts with the federal government. To qualify, small business owners have to show they are members of disadvantaged groups and also have access to limited financial resources. Those that meet the standard can bid on sole-source government contract set-asides. They can also set up joint ventures with larger firms to give both companies access to setasides and get technical assistance and training.

","

Tips for Small Businesses

","$59","

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Financial planning and analysis (FP&A) is the process businesses use to prepare budgets, generate forecasts, analyze profitability and otherwise inform senior management decisions of how to implement the company’s strategy most effectively and efficiently. The FP&A functions can be accomplished by an individual or a team working alongside other finance professionals such as the controller and treasurer and reporting to the chief financial officer (CFO). While FP&A is often performed by people with an accounting background, it differs from accounting by focusing primarily on forward-looking information as opposed to historical data.

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Typical members of an FP&A team include financial analysts and one or more FP&A managers charged with coordinating the work of the analysts. In larger organizations, a director or vice president of FP&A oversees the overall process and strategic direction and communicates with the CFO, CEO and members of the board of directors.

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FP&A Functions

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To fulfill its function of providing information and insight connecting corporate strategy and execution, FP&A performs a wide range of activities. These can be divided into a few broad categories including planning and budgeting, forecasting and management reporting.

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The central output of the FP&A process consists of long- and short-term plans. The job requires using financial and operational data gathered from throughout the company. A key part of the FP&A process is collecting and combining a wide variety of figures from operations, sales, marketing and accounting departments to produce a unified view of the entire business that can guide strategy decisions by senior executives and board members.

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Producing budgets is a big part of the FP&A planning function. Budgets describe expectations for the timing and amounts of arriving income, cash generation, disbursements to pay bills and debt reductions. Budgets may be monthly, quarterly and annually. Often FP&A creates a rolling budget for the following 12-month period that will be reviewed, adjusted and extended at the end of each quarter. FP&A also creates income statements and cash flow statements.

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One of the performance reporting functions of FP&A is identifying variances when actual numbers reported by business units don’t match up to the budgeted amounts. In addition to identifying and quantifying variances, FP&A can offer recommendations for strategies that could be used to bring actual results in line with expectations.

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Reports and forecasts from FP&A may be presented to the board of directors, to the CEO or other senior executives or to outside stakeholders such as lenders and investors. At a strategic level, decision makers use these analyses to choose how best to allocate the company’s resources.

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Public companies reply on FP&A to provide shareholders and analysts with guidance on revenue and profits for upcoming quarters and fiscal years. The accuracy of the guidance supplied to the markets can have a sizable effect on stock prices.

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Decision Support

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Initiatives to find ways to trim costs and make a business more efficient are also likely to involve input from FP&A specialists. Because it is in constant communication with all areas of the company in order to gather data for its budgets and plans, FP&A is well suited to optimization efforts.

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FP&A’s responsibilities could extend to nearly any department in the company, from operations to marketing to finance. For instance, FP&A may conduct internal audits, research markets or evaluate individual customer profitability. FP&A could also be called upon to provide risk management insights or assess the financial impact of tax policy decisions.

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Bottom Line

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Tips for Small Business Owners

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Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
The 80/20 Rule can help businesses gain insight into issues and opportunities so they can respond more effectively and efficiently. By identifying elements contributing most to a given outcome, businesses can better target resources to remove obstacles and exploit openings.

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