Michael Munsey, VP, Eagle Ford Oil & Gas
Has starting up your own business ever crossed your mind? Do you consider yourself an entrepreneur? I consider myself an entrepreneur, but I do not always want to view myself as an entrepreneur. With experience and success I hope to transition from an entrepreneur to an investor that supplies capital and experience to help young entrepreneurs get started. Starting up a business can be exciting due to the anticipation of the success you plan to experience along with the perceived freedom that comes with starting up a business.
I have been lucky enough to participate in five startup ventures or new businesses. These ventures do not include investing in real estate, writing my first book, An Average Joe’s Pursuit For Financial Freedom, or the provisional patent that I am currently applying for. My first business venture was fourteen years ago. My wife and I began making and selling candles out of our kitchen. We sold our candles over the internet, at craft shows and we eventually opened a candle shop, where we personally sold and made our candles. This business venture failed within the first three years. The second venture was an internet business which my wife started and currently runs. She started working on the internet six years ago. She was fortunate enough to find a niche on the web where she has generated enough revenue to pay back her initial investment of $20,000. She is currently generating a nice income by working from home in the kitchen on her PC. Even though her venture is successful, it still has not developed into what we consider a true business. Our goal is to develop her internet company into a true business, where the business will thrive without her being directly involved with every transaction. The third startup company was an oil company which was very successful and monetized within three years. The final two companies are a work in progress. I am currently working with three partners to start up another oil company. Lastly my wife and I are in the process of building an express car wash.
If you are thinking about starting a business you must be fully informed. You must have a good handle on the market needs that your business targets. You must also understand the factors that cause 55% of all new businesses to fail within the first five years of starting up. An additional 15% of all of these startup businesses fail within ten years. The primary reason for such a high failure rate for those that choose to startup businesses is due to the lack of management experience. The second major reason is the business is not designed to leverage the available work force.
My recommendation to anyone that is considering starting a business is to have enough money in reserve for an equivalent of one year’s salary, so that your family can continue to live at the standard of living that they are accustomed with. Do not depend solely on the revenue that the new business creates to provide for your personal needs and wants. A true business should not be dependent on the owner or founder’s participation in the day to day operations. The owner of any business should work on managing the business. They should focus on developing a strategy of managing stable growth for the company.
Starting a business is an exciting venture that appeals to many people, but starting a business should not be taken lightly. I am no different than many people that decide to go into business for themselves, I do not want to be an employee. I am willing to take on the calculated risk that comes with starting a business for the possibility of retaining a large portion of the upside or profits. In order to survive some of the pitfalls that come with starting a business, you must understand the market that your business targets. You must be able to manage your personal finances along with the business finances. You need to have good people skills to appeal to your target customers and to be a good employer. Without employees you will not have a true business. You must set up your business where it operates without your day to day participation in order for the business to remain profitable, which will enable you to focus on growing and managing the business.
About the Author
Michael Munsey is the vice president of operations and exploitation at Eagle Ford Oil & Gas. He holds a bachelor’s degree from Murray State University. While working to climb the corporate ladder within Halliburton Energy Services, Munsey enrolled in the Executive Master of Business Administration program at Rice University. After earning his master’s degree, he had a major change in the way he perceived money. In his spare time he enjoys hunting and fishing. Munsey and his wife have two boys and currently reside in Spring, Texas.