Kicking off and operating a small business is difficult. Do you have what it takes to be successful in both the start-up stage and the longer term?
In small business you are consistently subjected to mental strain.
You need to have a solid physical constitution because you may find yourself working longer hours than you ever did as an employee.
You have to handle uncertainty and anxiety and, if you make mistakes, you have to accept the repercussions.
All that and no absolute certainty you will even be successful!
The honest truth of the matter is that there are definitely many risks and rewards in regard to operating your own business venture.
You might start a small company and find two or three years down the track that your investment has failed.
On the other hand if you are actually suited to carrying on a business, you may find that it is one of the most stimulating and fulfilling things you do in your life.
You can control your own destiny in a way that you never would as an employee.
If you succeed, you will have the pleasure of carving out a place of your own in the business world.
And you may find yourself wealthier than you otherwise would have been.
So, do you have what it takes to start up a small business?
Your initial step in becoming a small business owner must be to evaluate yourself.
Can you accept the risks and the hard work? Are you the kind of individual who will be satisfied by the rewards offered as a result of operating a business?
There have been a lot of reviews of small business people that come up with different ideas about exactly what makes them tick and what characteristics they have in common which makes them successful in business.
They find some rather obvious things such as; business owners as people tend not to like taking orders– they strongly prefer being their own boss; that they are certainly high-energy individuals; that they are really enthusiastic about their company; they tend to be sociable– which helps when it comes to marketing and selling of course; and they are self-contained and can work long periods in solitude and with no support.
More than that, these people are resilient, are able to deal with rejection and failure and still go back for another shot.
They possess mental stamina and can exercise good judgment under stress.
They are firm decision-makers, yet tend to act only after extensively evaluating up all of their options.
They are not gamblers – they will take risks, yet only after doing anything possible to maximize the odds in their own favor.
Now, that is quite a list of traits, but it’s still only half the story.
The other half is motivation – is it so strong that it will keep you going through the most difficult times?
You could be driven by your own character to want to start your own company but other people are driven to start up their own business as a result of external forces.
They could be discouraged by their employer’s promotion policy, as an example.
They might feel that they are not really being paid according to their performance or perhaps their job may put too many time constraints on them.
They might like to be in a position to determine when and where they work.
The main thing to remember is that not all motivations showcase the kind of active drive which compels successful business people – it’s not as simple as just ‘feeling’ that it’s right for you or that it would be preferable to what you are doing now.
Being half-hearted is no way to go into business – you have to be really driven to be able to put in the effort that will be required.
Once you decide that you do have what it takes to go into business, there are 5 things you will need to do to make sure you have the very best chance of success.
1. Make sure there is a market for your product/service and develop your unique business idea. You need to understand just what you are going to sell, who you are going to sell it to and the key reasons why they will want to buy it from you. To do that you will need to understand your market place, your customers and your competitors.
2. Evaluate the financial feasibility of your start-up by looking at your start up costs, your sales estimates, your fixed and variable costs and most importantly, how these numbers come together to indicate your break even point.
3. Create a business plan that records everything you have learned in the first two steps and sets out your business strategy for success.
4. Make up your mind how to you are going to fund your start up business and use the business plan to approach your selected financier.
5. Be aware of the legal criteria for starting a business and decide on what structures you will use to operate the business venture.
All you need to do now is add the ultimate ingredient of success– the guts to make a start and implement your plan.
The entrepreneurial spirit is what makes our world a great place to live, and I urge you to follow your dreams for small business success, from startup to highly profitable business sale.