Since the Great Recession hit us in 2007, job security in corporate America has never been the same. Most of us decided to go at alone once we realized that having a job is just as risky as owning a small business. Entrepreneurship wasn’t looking too shabby. Since more of us are seeing entrepreneurship as the key to long term financial stability and security, it’s important that we know how to analyze our current situation to determine if we’re ready. Ask yourself the following questions to determine if entrepreneurship is a quest you’re ready to take on:
- Why do you want to be your own boss? Are you just chasing money? If that’s the case you may want to rethink your quest for successful entrepreneurship. Your reason behind starting your own business should be so much more than that. You should not only be in it to make money but to help others. As the old saying goes, Help and be helped. You help others improve their lives by what your company offers and you make money. It’s a win-win situation.
- Are you in it for the long haul? Growing a successful small business takes time, patience, smart work, and perseverance. There’s not many overnight successes in entrepreneurship. You may have to pay yourself the minimum wage when first starting out or forego a salary all together. You’ll have to dedicate long hours to building your business so you need to be in it for the long haul and forget about the illusion of easy money.
- Are you ready to be a “Jack or Jill of All Trades?” In the beginning you’ll be wearing many hats — owner, manager, sales and marketing director, etc. Therefore you’ll need to have a variety of different skills or be willing to expand your knowledge in all areas of business from marketing to information technology. It could be a good long while before you can afford to hire skilled employees in these areas. (Keep in mind that it’s always a good idea to outsource these positions to other skilled entrepreneurs in these areas).
- Is Passion Your Driver for Success? Let’s face it, entrepreneurship is flat out tough and the number one thing that is going to get you through the hard times is pure passion. You need to be passionate about what you are doing with your small business, if you are not, it will be much harder to motivate yourself and keep it going.
If your answers to the aforementioned questions are mostly positive and you believe you can handle what entrepreneurship entails, it may be time for you to go on your entrepreneurial mission. Before you do, it’s also important that you know the top 3 reasons small businesses fail so you can avoid those failures and get the results you want.
Don’t be a Failure
It’s a well-known fact that more than 95% of new businesses fail. Most of the time it is due to reasons that if addressed early on, are fixable. There are three top reasons most businesses fail:
- Incompetent Leadership: Business owners who aren’t innovative and/or don’t stand out from the competition. To be successful, you have to know who your customers are and what they want. You also have to provide it to them in a way that no one else has. If you don’t know your market and how to reach them, chances are you won’t get very far.
- No Real Vision for Growth: As an entrepreneur you need to have a clear vision for growth and be able to share that vision with others that may be able to help you. You need to know where you are now and where you’re going to be successful. Not having a plan for growth is a quick way to fail.
- Failure to Take Advantage of Available Resources: You are always going to need extra help. If you don’t know exactly what needs to be done to start and grow your business, it would be wise to seek assistance. After all, you won’t be able to do everything on your own. Business owners who don’t have the proper guidance in areas that they are not well-versed in may find it difficult to reach the level of success they desire. Needing help with marketing and advertising, capital and contract acquisitions, or daily operating tasks is normal in business. Seeking help for these things can take your business to the next level.