Is Entrepreneurship Right For You?

Definition of entrepreneurship – it’s more than just a wonderful life (when you successfully turn a profit), but it’s also a lot of hard work!

In business, there are no guarantees. There is simply no way to eliminate all the risk associated with starting a small business - but you can improve your chances of success with good planning, preparation, and insight.

Start by evaluating your strengths and weaknesses as a potential owner and manager of a small business. Carefully consider each of the following questions regarding the true definition of entrepreneurship.

Are you a self-starter? It will be entirely 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, bankers, and professionals such as lawyers, accountants or consultants. Can you deal with a demanding client, an unreliable vendor, or a cranky receptionist if your business interests demand it?

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

Do you have the physical and emotional stamina to run a business? Part of our definition of entrepreneurship is that business ownership can be exciting, but it's also a lot of work. Can you face six or seven 12-hour work days every week?

How well do you plan and organize? Research indicates that poor planning is responsible for most business failures. Good organization of financials, inventory, schedules, and production can help you avoid many pitfalls.

Is your drive strong enough? Running a business can wear you down emotionally. Some business owners burn out quickly from having to carry all the responsibility for the success of their business on their own shoulders. In our definition of entrepreneurship, strong motivation will help you survive slowdowns and periods of burnout.

How will the business affect your family? The first few years of business startup can be hard on family life. It's important for family members to know what to expect and for you to be able to trust that they will support you during this time.

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 in the short-term.

Why Small Businesses Fail Success in business is never automatic. It isn't strictly based on luck - although a little never hurts. It depends primarily on the owner's foresight and organization. Even then, of course, there are no guarantees.

As you get clear on your own definition of entrepreneurship, you should realize that starting a small business is always risky, and the chance of success depends greatly on your preparedness and willingness to do whatever it takes to get the job done.

According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year and 95% fail within the first five years.

In his book Small Business Management, Michael Ames gives the following reasons for small business failure:

1. Lack of experience
2. Insufficient capital (money)
3. Poor location
4. Poor inventory management
5. Over-investment in fixed assets
6. Poor credit arrangements
7. Personal use of business funds
8. Unexpected growth

Gustav Berle adds two more reasons in The Do It Yourself Business Book:

9. Competition
10. Low sales

More Reasons Why Small Businesses Fail The preceding figures aren't meant to scare you, but to prepare you for the rocky path ahead. Underestimating the difficulty of starting a business is one of the biggest obstacles entrepreneurs face. However, success can be yours if you are patient, willing to work hard, and take all the necessary steps.

On the Upside It's true that there are many reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks.

Make sure to consider the following as you finalize your definition of entrepreneurship:

• You will be your own boss.
• Hard work and long hours directly benefit you, rather than increasing profits for someone else.
• Earning and growth potential are far greater.
• A new venture is as exciting as it is risky.
• Running a business provides endless challenge and opportunities for learning.

In conclusion, there is no single definition of entrepreneurship. Each prospective new business owner must make their own way, based on the strength of there own convictions.

Some of the greatest success stories are written about men and women who were at one time told they couldn’t achieve anything.

Those same people rose above their critics to achieve greatness despite their perceived shortcomings. Their grit and determination made up for whatever they lacked.

Sales Management Tools & Resources

Sales management articles provide proven management development and personal goal settings ideas. Every sales manager must stay informed about new selling practices and sales strategies.Begin creating your sales strategy today! Download our free sales management tools to improve sales productivity and increase profits!

More Articles on Sales Management

» Entrepreneurial Traits - Do You Have What It Takes?
Learn what it takes to be an entrepreneur and the next business success story. Discover the entrepreneurial traits that can best predict your future success or failure.

» Fast Money Making Idea
Make more money literally while you sleep. Lots of people are doing just that! Identify the fast money making idea that might just be your ticket out of the 9 to 5 grind.

» Small Business Product - Understanding Features and Benefits
Getting back to basics in product development and sales management training. Know your small business product inside and out in order to sell it with ease.