In times of uncertainty a lot of people think having their own business may be their solution. It is a huge financial gamble that you don’t want to take only to find out that it is not right for you. Make sure you have the personality before you put in all the time, energy, and money that it takes to be an entreprenuer.
Several years of setbacks can await the new entrepreneur. And when the economy dips, the independent new business feels the hit just like the well-established business. Cele Peterson started her retail dress business during a recession having the drive and tenacity to thrive even in a down economy. Not everyone can do that.
|
|
How can you determine out if entreprenuership is right for you?
Conversations with successful entreprenuers, academics and researchers have helped me come up with a questionaire to help you determine if self employment is right for you. There is no entreprenuer profile or personality but there are some charactistics. These will help you lower the risk of making a choice you will be comfortable with.
Realize any questionaire is useless without completely truthful answers. Remember too, sometimes we do not see ourselves as clearly as a spouse, close friend or associate does, so ask someone who knows you to help with your answers.
These are the questions to ask yourself before you attempt to take on the challenges entreprenuership:
One of the most important questions is based on the fact that many businessess fail – at least half- somewhere in the first five years. Given that well known statistic, and knowing that if your business fails you will probably lose everything you invest plus the salary you could have earned, think hard before you answer this first question.
1. Can you afford and are you willing to take the financial loss? According to the Small Business Administration, startup businesses stand a 50/50 chance of making it five years or more. Given that, know that if your business fails you will probably lose everything you invest plus the salary you could have earned.
2. Are you willing to “put your profits back into the business” instead of your lifestyle for several years? It is not uncommon for start-ups to take two to five years before they break even.
3. Are you an age where you can afford to lose security and have time to recoup? Entreprenuers have started their businesses in their 50s, 60s and even later but the risk needs to be carefully evaluated.
4. Are you comfortable with making decisions with no “boss” to check with?
5. Do you finish what you start? You’ve seen the advertisements with all the hats. Entreprenuers wear all of them and get everything done.
6. Are you able to pursuade others? You will have to be very good at marketing and sales. You also will need to be a leader who motivates if you have employees.
7. Are you a self-starter? There will be only you to set goals and objectives and implement those good ideas at first. Even with employees, they will all look to you for leadership.
8. Are you dependent on praise? At first, there will be no one to give any positive feedback and you will have to appreciate your hard work and efforts for yourself. You have to motivate yourself and reward yourself.
9. Do you have a partner who is strong in areas where you are not? Be careful here. Partnerships can be fraught with discord and ruin your business but if you chose wisely, they can be the difference between success and failure.
Contact Sharon Youngblood at say@youngbloodconsulting.com or (520) 795-7498. Youngblood is a certified management consultant, corporate coach and speaker who works with leaders to improve performance and profitability of firms. Her website is at www.youngbloodconsulting.com. Best Practices appears the first Monday of each month in Inside Tucson Business.
Comments