Many individuals today who want to start their own business wonder if business ownership is right for them. The truth is that most people simply aren't likely to succeed at business ownership for a variety of reasons. An honest self-assessment before launching a venture can help you decide if you possess the motivation, skills, or knowledge sets required for business success. If you think you have all five of the skills below, entrepreneurship might be right for you.
Are you self-motivated?
When striking out on your own, self-motivation will be the only thing to keep you going. As a leader, your job will be to stay motivated and even motivate others. Without a boss or supervisor, many inexperienced individuals find themselves distracted and unproductive. If you think you can keep yourself motivated even during the most hopeless times, owning a business might be appropriate for you.
Do you have specialized knowledge?
A business that will truly succeed requires specialized knowledge that comes from a combination of experience and research. Most business ideas are generated while working on a job for others or as part of a team. When a viable business idea is discovered, it is important to find individuals that understand specialized aspects of proposed methodologies. While it’s not required for entrepreneurs to have these skills themselves, having a basic understanding will be critical for success.
Is your business idea innovative?
Unlike in other professions, entrepreneurs cannot be successful by simply copying others. Developing innovative ideas, capitalizing on opportunities, and connecting individuals is a critical part of being an entrepreneur. While the business process itself does not necessarily have to be unique, the overarching strategy must serve a need that is not already being fulfilled. Many businesses fail because they start with an idea that is simply not compelling, is over-served, or has no public demand.
Do you have the financial resources to launch a business?
It is not necessary that individuals fund the entire venture alone. However, it may be necessary to defer compensation for several years until the business achieves profitability. While most entrepreneurs pay themselves at least minimum wage, this is more of a token payment to satisfy the legal requirement for all employees to receive a specific amount of income. Expecting venture capitalists or banks to pay for cars, mortgages, accumulated debt, or personal expenses during launch is simply inappropriate. It is generally recommended to have at least two years of expenses saved up before launch.
Can you work long hours?
Those who are often successful as entrepreneurs are willing to put in long hours to achieve success. Business owners that are not driven in this way will have a difficult time overcoming more challenging competitors. In today's competitive environment, it will be necessary that you spend extra time doing research, managing business affairs, and managing workflows.
