Entrepreneurship - Do You Have What It Takes?

According to the SBA, fifty percent of all small businesses fail within the first five years. Wow! That’s scary! Think about it this way – you’re standing in a room with another small business owner, and most likely one of you will close your doors. Who will it be? There’s a fifty percent chance it’ll be you!

Here’s the picture. On a personal level, you wonder from day to day whether you can pay the mortgage, sometimes even whether you can pay the utilities, or worse, if you will be able to buy groceries. And since money is so tight, you start to get scared, wondering where you’ll find your next customer. That makes you anxious and almost pushy when someone shows interest. They sense the urgency and often get scared away. Unfortunately, you - the business owner - are always the last to get paid (if you get paid). Thus, the personal financial issues can consume your thoughts and dictate your actions.

On the business side, there are even more issues to address. Are you making the right decisions so that once the money problem is handled, you’ll have done the right things to keep the company going? Did you choose the right location for your business? Are you home-based and possibly should have opened a store-front? Or did you spend the money on an off-site location when you could have chosen to be home-based and saved money on overhead expenses?

Are you skilled enough to manage your inventory, track your financials, create marketing materials, develop a website, manage your employees, and retain customers through proper follow-up? Are you organized enough to schedule your time and your employees’ time properly? Do you have the software skills it takes to run your business efficiently? If you answered no to any of these questions, do you have the funds to hire someone who does?

This brings other questions to think about. Do you have the skills to hire and manage employees? Do you know the state and federal laws associated with Human Resources? Do you know how to process payroll?

Do you have the funds to hire professionals? You’ll need an accountant, attorney and business coach. Yes, you do need a business coach. The SBA states that one of the reasons small business fail is lack of experience. This is where a business coach/manager will earn every dime you pay him or her. Other reasons for failure are unexpected growth, over-investing in fixed assets and insufficient funding. Again, a good business coach will be able to assist you by helping make these difficult decisions.

These are all questions that must be considered. And if you’re still reading, then you haven’t yet been scared off. So, you just might have the internal fortitude it takes to move forward with your desire to be a business owner.

Of course, the success of your business depends on motivation, determination and perseverance. It takes passion, faith in self and willingness to work hard and long. The benefits of being your own boss are that the long hours and hard work don’t usually seem like work because you love what you’re doing. The profits come to you rather than someone else. Think of the sense of accomplishment and excitement you’ll create for yourself!

If you don’t want to deal with the long start-up normally associated with a new business, you can purchase an existing business - a franchise, independent business opportunity or turnkey business package. Any of these can be very helpful and shorten the time it takes to start your own business, plus provide support and experience.

Whatever start-up method you choose, if you have the passion, desire and belief in what you can achieve, then you owe it to yourself to live the dream!