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Are you ready?
Is Entrepreneurship For You?
In business, there are no guarantees. There is simply no way to eliminate
all the risks associated with starting a small business - but you can
improve your chances of success with good planning, preparation, and
insight. Start by evaluating your strengths and weaknesses as a potential
owner and manager of a small business. Carefully consider each of the
following questions.
Are you a self-starter?
It will be entirely up to you to develop projects, organize your time,
and follow through on details.
How well do you get along with different personalities?
Business owners need to develop working relationships with a variety
of people including customers, vendors, staff, bankers, and professionals
such as lawyers, accountants or consultants. Can you deal with a demanding
client, an unreliable vendor, or a cranky receptionist if your business
interests demand it?
How good are you at making decisions?
Small business owners are required to make decisions constantly - often
quickly, independently, and under pressure.
Do you have the physical and emotional stamina to run a business?
Business ownership can be exciting, but it's also a lot of work. Can
you face six or seven 12-hour work days every week?
How well do you plan and organize?
Research indicates that poor planning is responsible for most business
failures. Good organization of financials, inventory, schedules, and
production can help you avoid many pitfalls.
Is your drive strong enough?
Running a business can wear you down emotionally. Some business owners
burn out quickly from having to carry all the responsibility for the
success of their business on their own shoulders. Strong motivation
will help you survive slowdowns and periods of burnout.
How will the business affect your family?
The first few years of business startup can be hard on family life.
It's important for family members to know what to expect and for you
to be able to trust that they will support you during this time. There
also may be financial difficulties until the business becomes profitable,
which could take months or years. You may have to adjust to a lower
standard of living or put family assets at risk in the short-term.
Why Small Businesses Fail
Success in business is never automatic. It isn't strictly based on luck
- although a little never hurts. It depends primarily on the owner's
foresight and organization. Even then, of course, there are no guarantees.
Here are some of the main reasons for small business failure:
- 1:Lack of experience
- 2:Insufficient capital (money)
- 3:Poor location
- 4:Poor inventory management
- 5:Over-investment in fixed assets
- 6:Poor credit arrangements
- 7:Personal use of business funds
- 8:Unexpected growth
- 9:Competition
- 10:Low sales
More Reasons Why Small Businesses Fail
These reasons aren't meant to scare you, but to prepare you for the rocky
path ahead. Underestimating the difficulty of starting a business is one
of the biggest obstacles entrepreneurs face. However, success can be yours
if you are patient, willing to work hard, and take all the necessary steps.
On the Upside
It's true that there are many reasons not to start your own business.
But for the right person, the advantages of business ownership far outweigh
the risks.
You will be your own boss.
Hard work and long hours directly benefit you, rather than increasing
profits for someone else.
Earning and growth potential are far greater.
A new venture is as exciting as it is risky.
Running a business provides endless challenge and opportunities for learning.
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Business Solutions |
