Are you an entrepreneur?

Is Entrepreneurship For You?

Different people have different motives for starting a business. Some are motivated by a desire for independence, a quest for monetary rewards, a sense of accomplishment, or perhaps a particular opportunity inspires them. Dissatisfaction or unemployment may also drive individuals to go into business for themselves.

Before investing a great deal of time, effort, and money into starting up a business, determine if owning your own business is right for you. Look at your personality, financial situation, personal issues, educational background, experience, and the business idea itself. Is entrepreneurship a good fit for you?

Are You an Entrepreneur?

Unfortunately, there is no one test to determine the answer to that question. However, successful business owners have some common skills and personality traits that contribute towards their success. Do you possess the qualities needed to run a business?

Are you a self-starter? If will be 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, and professionals such as lawyers, accountants, bankers, and consultants. Can you deal with demanding clients, unreliable vendors, or cranky staff if doing so is in the best interest of your business?

How good are you at making decisions? Small business owners are required to make decisions constantly, often quickly, under pressure, and independently.

How well do you plan and organize? Research indicates that many business failures could have been avoided through better planning. Good organization – of financials, inventory, schedules, and production - can help avoid many pitfalls.

Is your drive strong enough to maintain your motivation? Running a business can wear you down. Some business owners feel burned out by having to carry all the responsibility on their shoulders. Strong motivation can make the business succeed and will help you survive slowdowns as well as periods of burnout.

How will the business affect your family?  The first few years of business start-up can be hard upon family life. The strain of an unsupportive spouse may be hard to balance against the demands of starting a business. 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.

Even if you do not possess every single trait associated with successful entrepreneurs, do not give up your idea of running your own business. Here's what you can do:

  • Educate yourself through books, courses, and discussions with other business owners.
  • Take some additional time to get the experience you may lack.
  • Develop the skills and traits you do not have.
  • Partner with someone that can handle the things you cannot.
  • Hire others for areas in which you are unfamiliar or inexperienced.