A well developed and researched business plan is the key to any successful business but first potential business owners must evaluate if they possess the necessary characteristics to become an entrepreneur. Although the benefits of entrepreneurship maybe appealing, it is fair to say that entrepreneurship is not for everyone. According to the Small Business Administration, in the US approximately 600,000 new businesses are started each year and out of that 600,000 half will close within five years of opening. It is imperative that potential small business owners evaluate if they are compatible with entrepreneurship in order to prevent from being part of the failure statistics.
The reason for many entrepreneurs’ to start a small business varies but a lot of the reason is motivated from some sort of frustration with their current employer. There is an illusion that a lot of people have that once they become an employer verses being an employee, it will somehow relinquish them from the long hours and hard work. The fact of the matter is that entrepreneurs usually work harder and longer hours than their employees and it may take years before they reap the benefits of entrepreneurship. Potential business owners who believe that all their problems will be lifted once they go into business for themselves are going into entrepreneurship blindly. It is essential for those who are considering small business ownership that they fully understand the transformation from a traditional job to entrepreneurship. This can be a major indicator for potential entrepreneurs if they should attempt to switch.
In order to make informed decisions, potential business owners must thoroughly research the industry they plan to enter. This will allow potential business owners the opportunity to fully understand what it means to be an entrepreneur and it gives them insight on what their responsibilities will be. Potential entrepreneurs must understand that as an owner you are responsible for the livelihood of your business and that most entrepreneurs start off running all aspects of the business from general office needs to sales. Having a realistic view of starting and running a business will prepare potential entrepreneurs and help them make an informed decision on if they should start.
It is important for potential business owners to evaluate their strengths and weakness to see if they have what it takes to successfully run a small business. They should compare their skill set to the skills needed to successfully run the type of business they are interested in and this will give them an in-depth analysis on their compatibility with entrepreneurship. If potential small business owners have a complete understanding of their strengths and weakness it will help prepare them for the realism of starting a small business.
Knowing what type of business to start is great but knowing if starting a business at all is what most small businesses fails to consider. Starting a small business must be a well thought out process where potential business owners consider both the negative and positive aspects of starting their own business. Only then can small business owners make informed decisions that will benefit them personally and professional. It is imperative for the success of the business and to help eliminate risk that potential small business owners thoroughly consider if starting a business is right for them.