Before you go into business for yourself you'll need to critically assess if you have what it takes to succeed.
Here are 7 signs you are not quite ready - but don't get discouraged, you can get there!
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You're not Quite Ready If...
1. You're not comfortable being the decision maker
Are you the kind of person who is comfortable having the final, non negotiable say in something? You’ll need to be when you decide to start your own business. Countless times you will need to make “make or break” decisions about your business and those decisions will be yours alone. Other times you will need to draw a line in the sand and stick by your guns on a decision you know is right for your business – if you’re not currently comfortable with that, you’ll need to get there.
2. You lack long term focus
Some people live day to day, or have a hard time planning past next week. That’s fine in your personal life, but in business a short term outlook can be a killer. You’ll need to be comfortable planning for the next five years, and maintain focus on that plan in order to be successful. Remember – Short term outlooks lead to short term goals. And I’m sure you want to be in business long term.
3. You lack time or willingness to reprioritize your life
If you can’t picture a life where you won’t be able to watch every episode of Survivor, business owner ship may not be for you. Starting and run a profitable business takes an inordinate amount of time, and while we all have other commitments outside of our businesses, you need to sacrifice and reprioritize your personal time to make it work.
4. You don’t have the support of your significant other
Starting and running a business will affect your family, and especially your significant other more than you realize. They shoulder much of the burden of the startup, even if they aren’t actively involved in it’s management. Their support is imperative to your success. If they are not supportive, work to get them there before you launch.
5. The thought of 16 hour days make you cringe
As we said above, starting and running a business is an inordinate amount of work. The myth is that business owners have a lot more free time than the “wage slaves”, but that couldn’t be farther from the truth. You will work longer, harder, and more intensely than you ever have working for someone else.
6. You have a hard time accepting full responsibility
Everything your business does, or does not do, is your responsibility. Sure a supplier may have dropped the ball, or an employee screwed up, but guess what? You are the person who will need to answer to that. More times than I can count I’ve had to step up and take responsibility for something that wasn’t necessarily my “fault”. It’s part of paying the cost to be the boss – be ready for it.
7. Your personal house is not in order
You will need to be in a strong position personally to make a business work. This means in a good place with your relationships, finances, and state of mind. When you are in the early stages of building a business you will be faced with numerous situations where throwing in the towel seems like a good idea. The stronger a personal foundation you have built the easier it will be for you to push on and make your venture a success.
Self Assess For Success
As you can see some of the above are personality based, and will be harder to change. While others are more lifestyle choice based. The idea here is to know where your strengths and weaknesses lie, and to critically assess yourself before you take a leap into running your own business.
If you find you exhibit some of the above traits, don't get down, or throw in the towel. Just work at improving before you launch, you'll put yourself in a much better position relative to the competition who didn't do the same kind of self assessment.
What do you think? Would you add anything to my 7 traits?
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Photo Credit: Leo Reynolds
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Great post! An aspiring entrepreneur definitely needs to go into business with his or her eyes open.
I would also add that the entrepreneur should have a healthy tolerance for risk and ambiguity. Especially in the beginning, it often feels like you’re on a run-away train. The trick is to hold on and believe in yourself and your plan.
That’s a great post and one of the reasons I’m in the watch and learn stages. I’m all for jumping in with zest, but anything you can do to up your chances of succeeding is time well spent.
Oh and I think there is also nothing wrong with deciding that you are more comfortable working for other people or that you’d rather just keep your business very small and part time. Being a great employee is something to be proud of even though I know some people think it’s inherently better to be your own boss.
Ack, keep hitting submit too soon (reason 8 – make sure you are not an impatient idjet?), so I guess I’d add to the list make sure this is what you truly want to do, not just because somebody told you it was better or you feel like you have to.
Matt,
Since I quit my 40 hour a week job to live the indulgent life of an entrepreneur, I know work seven days a week, anywhere from 5 – 16 hours a day. I arise EVERY day at 5am and get on it.
I’m having a great time and I know it will pay off. I’m also lucky to have a lot of support during these meager times.
Self evaluation is crucial to ultimate success. Make sure this is something you REALLY want to do!
George
When I first went into business for myself, so many of my friends thought that they’d see more of me. Wrong! I don’t think I’ve seen many of them for years. Owning a business is so much more than just being an “entrepreneur”… it’s really a lifestyle that often gets very tough, with lots of risk, but equal payout in terms of seeing what you can accomplish, and of course monetary payout.
I definitely agree with George… make sure it’s something you really want to do! If the passion starts to fade, your customers AND your employees WILL notice!
16 hour days are on the way. Don’t think starting a business is easy. The idea is that you are doing something you love so work is no longer work. But that hobby of yours or passion of yours will now be on your mind 16hours a day so be ready.
I have to say the make sure you significant other is supportive strikes a cord with me. When I first started my business I was with a woman who was negative and not supportive. Needless to say she is no longer part of my life and I am still in business 4 years later.
Great post. Reluctance to make do on very little income (especially in the early days) would be another sign of not being ready to start a business.
I think everyone who’s thinking of starting a small business but has never been self-employed before should read this article. Like John, I would add something about how important it is to be financially prepared; new entrepreneurs need to have some other way to pay their bills for at least six months (and maybe even longer) before their new business starts bringing in income.
I don’t need signs, I know I’m not ready for it. I’d rather make a litte less money but not have to worry about everything instead of obsessing about the way the company is going 24/7.
I would add “a willingness to admit you don’t know it all.” Many small business owners have a do-it-yourself mentality, which provides the self-confidence needed to take the plunge, but can also preclude the SBO from asking for help when needed. Talk to a CPA before you incorporate to determine the correct tax structure. Talk to a lawyer before you open your doors or get your first customer to make sure your business is properly formed and your contracts are properly drafted. It’s much cheaper to do it right the first time than try to unravel a mistake months or years down the road.
I don’t know that I completely agree with everything here. I’ve been in business for myself for, uh, oh wow – 11 years now. I’m still a 1-man shop, but I don’t want to play babysitter again. I don’t spend 16 hour days or “work” weekends, but it is definitely a “lifestyle” business, and I’m hardly EVER away from some form of electronic communication. Checking email is the first thing I do every morning and the last thing I do before bed every night, 365 days/year. And during commercials. But it doesn’t feel like it a big burden – it’s just what I do. And if I want to take an afternoon off to ride my motorcycle to the airport to fly my airplane, well, my clients can leave me a message, which is the first thing I’m going to check when I’m back on the ground. I answer to no one but my clients and myself (and my wife, but that’s a whole ‘nother story.) I couldn’t possibly imagine ever going back to work for someone else and giving up the freedoms I have now. And if I actually had long term focus (#2 above) I would probably be able to buy a bigger airplane. Eventually I probably will…
I agree with the 7 signs, but it is also important to remember that failing is part of the process. The most successful business owners have tried and failed many times before they succeed. I do recommend being independent.