| In business, there are no guarantees. There is simply
no way to eliminate all the risks 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:
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? Business
ownership can be exciting, but it's also a lot of work. Can you face six or seven
12-hour workdays 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. 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. |
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