Is Starting a Business Right For You?

Is Starting a Business Right For You ?  Are You Tempted but Unsure?

Have you ever asked yourself … Is Starting a Business Right For You ? … What is the best business to start? or …. Where can I get start up business ideas? Am I cut out to be an Entrepreneur?

The truth is that the answers are all in front of you when you look in the mirror.

I know it sounds trite, but really you need to take a good inventory of yourself, your skills, your needs (emotional and financial) and your experience before deciding what kind of entrepreneur you are best suited to be.

There is no one personality or skill type that makes for a successful small business owner. It helps to understand yourself and your needs … then think of the types of business that will best match you before you start a business.

So what is an Entrepreneur?

According to Wikipedia.org …. “An entrepreneur is a person who has possession of a new enterprise, venture or idea and is accountable for the inherent risks and the outcome of a product. … Entrepreneur … is a term applied to a person who is willing to help launch a new venture or enterprise and accept full responsibility for the outcome.”

In other words …

• You take responsibility, no employer, no supervisor, no one to pass the buck to! Sounds great right!
• You take the risk of failure – both personal and financial
• If it needs to get done – you do it
• Success has high rewards – both emotional and financial
• Failure is possible and can be devastating

How can you decide what is best for you?

Think about these characteristics of a successful business owner:

1. You realize that life long employment is a myth and loyalty to you from your employer is situational and out of your control
2. Bureaucracy and paperwork drives you nuts
3. New opportunities for growth are exciting to you
4. Change is invigorating to you
5. At least a few people would think you could be a ‘control freak’
6. You process a strong work ethic and are a self-motivated determined person
7. Personal and business risk is accepted and you believe in your own instincts
8. You are able to sell your concepts and products/services to customers, investors and family
9. You know you will do whatever it takes to succeed

Being confident and self-motivated can often be confused with arrogant and stubborn. It is very important for any small business owner to be able to quickly access their business situation and then take appropriate action – even if it means changing course in mid-stream.

This situational flexibility is extremely important. The business world is unforgiving and ever changing. What has worked in the past is most likely not going to work into the future. Thinking, changing and adapting are key elements of success for an entrepreneur.

Do you have realistic wants and needs from your business idea?

Most new businesses do not make any profit in the early years … and many cannot pay the small business owner any money in the first year. If you have any employees in the first year they probably will make more money than you do that start-up business first year.

This means that you need to have enough outside income or savings to support yourself and the business cash flow needs for at least one year. Your business working capital should be a separate pool of money from your own personal expenses pool of money. You will have to eat and live somewhere!

If you can start your new business part-time while still employed, your personal cash flow problem will be much easier to manage. Also, many new business start ups occur because a person has been laid off with a generous severance package.

So … can you bootstrap your business growth while cutting personal expenditures? Are these sacrifices that you and your family are willing to make? If the answers are yes, then you have passed a major hurdle toward deciding whether you have what it takes to be an entrepreneur.

Where do the husband, wife, children and family fit in?

Are these other people in your life ready to let you do what needs to done to succeed in business?

You need to fully discuss the potential and especially the risks involved. After all, these people love you and will want you to have business success, but they also will be relying on you for companionship and emotional support as you and your family go through life’s every day challenges.

You will be time challenged, stressed, financially on edge, and sometimes overwhelmed by running your new small business. Your family can suffer during these challenging times. That all important work/life balance is something most entrepreneurs do not do very well at.

Communicate well at the beginning, do your best to let them know what lies ahead. If your family really understands why this is so important to you and how much potential there is long term they will be there for you when times are difficult. Even if the goals of the new business are not to make large sums of money, but to allow you to be independent and your own boss … the family can be a great source of support.

Still want to start your own business?

• If the topics covered above have not discouraged you …
• If you have taken an honest assessment of who you are and how your entrepreneurial plans will affect those loved ones in your life …
• If you are ready to take the risks and make the sacrifices …
• If you have a plan to support yourself and your new business in the early months and years …

Congratulations, you may have what it takes to start up a new business and SUCCEED. You have passed the first litmus test and now can get down to deciding what new business idea is best for you.

There is nothing greater than starting with a business concept, creating a business plan and then executing the business plan in a way that is successful and rewarding. Once, you have done it you will never want to be anything but self-employed forever. Maybe even you will become a ‘serial entrepreneur’, but I am getting ahead of myself.

Your Business Mentor Ray, will be here on the long journey providing resources, support, ideas and hard news to help you succeed.

Your comments and questions are welcome. Is Starting a Business Right For You?