Starting a Small Business: Do You Have It In You?

Almost every person, at least once in life, thinks about starting a small business of their own and becoming an entrepreneur.  Entrepreneurship is exciting, fun, productive, challenging, uncertain etc. etc.  But, entrepreneurship is not for everyone.  This is the first article from the series that will guide you through the steps to start a small business.

B.E.T.A. Daily, encourage people to start a small business and provide fantastic small business ideas; however, we would also like all the wannabe entrepreneurs to understand the repercussions of starting a small business.  The reasons for starting a business of their own are different for everyone.  Ask people about the reason they want to start their own business and you will get:

• I want to be my own boss
• I am not happy with my current job
• I hate my boss
• I have an idea that can change the world
• I want to break out of the 9 a.m. to 5 p.m. daily schedule
• I want to add an income stream (these are the people who want to have the best of both worlds; keep their job and run a business too)

Whatever the reasons for starting a small business of your own, you should think twice before taking the plunge.

Factors to Consider Before Starting a Small Business

1. The impact on family: Most people want to devote time to their families and their job often restricts them from doing so.  Starting own business looks like a good idea to people who think they will have lot more flexibility in their schedule if they work for themselves.  The truth, however, is very different.  Entrepreneurship asks for long hours, much longer than the day job.  At times it may become extremely difficult to balance work and life.  In a day job you are tied to a schedule but still have a schedule with ample free time.  In a business you may find yourself having no schedule at all with lesser free time.

2. The missing paycheck:  A regular paycheck does a lot of things.  It brings financial security and predictability to a certain extent.  It brings peace of mind that your expenses will be taken care of.  Start your own business and the first thing to disappear is the paycheck.  Be ready to meet your expenses without the monthly fixed earnings, at least in the initial months of your business.

3. Going all alone: An entrepreneur is an individual who starts alone and builds up team and partnerships on the way to success.  The path that you have to travel alone as an owner of a startup small business may look very long as it takes time to build lasting relationships with employees, suppliers and partners.  In the initial stages, be prepared to go all alone.

Qualities Required for Starting a Small Business

If you have understood the above three crucial changes that will come along when you start a small business and still want to go ahead, the next step is to evaluate your entrepreneurial qualities further.  Use the below test to check your entrepreneurship capabilities.

a. Are you a go-getter?

1. I can individually think of an idea and implement it
2. I can implement any idea but need help and motivation to start
3. I like working on the implemented ideas

b. Can you take risks?

1. I love surprises and ready to take on the uncertain
2. I am fine with calculated risks
3. I like to play safe

c. Are you a people’s person?

1. Yes, I love working with people
2. I am fine with most of them
3. I like working alone

d. Are you a leader?

1. Yes
2. In most of the situations
3. I would rather follow than lead

e. Are you innovative?

1. I always have a plenty of ideas
2. I can build up on ideas
3. No

e. Can you work 60-70 hours a week?

1. Yes
2. At times
3. No

f. Can you sustain yourself and your family without a regular paycheck?

1. Yes
2. Only for few months
3. I need to have a fixed income

g. Can you fire a friend from the job?

1. Yes, if that is what the situation calls for.
2. May be
3. I just can’t do that

h. Can you work from a garage?

1. Yes
2. I don’t like the idea but that’s fine if necessary
3. I need a well-furnished office to work properly

i. Can you run multiple business functions yourself?

1. Yes, I am game for that
2. I hope so
3. That’s asking too much

j. Do you have experience in the business you are planning to start?

1. Yes
2. I have got some experience
3. No at all

The above questions are meant to assess your temperament and abilities to start your own business.  If you answered 3 for more than 5 questions you are not yet ready for entrepreneurship.  If you answered 1 or 2 for more than 6 questions, you have the attitude and skills for starting a small business.