---

Guest post by: Plan Your Business Become an Author

Tweet

---

---

Is Entrepreneurship For You?

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.

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.

Starting a small business is always risky, and the chance of success is slim. 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:

* Lack of experience
* Insufficient capital (money)
* Poor location
* Poor inventory management
* Over-investment in fixed assets
* Poor credit arrangements
* Personal use of business funds
* Unexpected growth


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

* Competition
* Low sales


More Reasons Why Small Businesses Fail

These 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.

* 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.

Related Articles

  18.0 Conclusion: Entrepreneurs and entrepreneurship in Africa
  17.0 What Needs to be Done - Mainstreaming Entrepreneurship: Entrepreneurs and entrepreneurship in Africa
  California's Not a Big Entrepreneurship State
  Entrepreneurship Is Very Closely Associated With Your Risk Taking Abilities
  7 mistakes, and 7 keys to successful entreprneuership.
  10.1 The education system: Support for Growth-oriented Women Entrepreneurs in Tanzania, 2005
  Pure Entrepreneurship
  Updated: The Age/Entrepreneurship Myth
  1.0 What is known and what needs to be done: Entrepreneurs and entrepreneurship in Africa
  Entrepreneurship Spirit
  New Age Entrepreneurship
  6.3 Limitations of Enterprise Survey data for gender analysis: Gender Entrepreneurship and Competitiveness in Africa 2007
  Entrepreneurship
  Business and Entrepreneurship Passion not required
  Advanced Entrepreneurship
  Entrepreneurship/Business Environment
  Importance of Entrepreneurship
  Marcus Asay Explains How Entrepreneurial Development Affecting Economic Development
  Entrepreneurship Fantasy Land
  The "Tilt" Thing and the Case for Journalist Entrepreneurs

Related Forum Posts

Re: Hi there! I'm Shanuna Cortez
Re: Hello everyone!
Re: Do you think you can win?
What's your Calling?
Good day! I'm a book author and web publisher

Share this article. Fund someone's dream.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Are You Writing Your Book for the Wrong Reasons?

Are You My Mentor

Event Planning Jobs: Where Do You Find Clients?

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.