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Entrepreneurship is not just about setting up a business, it’s also about running the business as well as making it a success.
Perhaps, this is why it’s important to always remember that success in entrepreneurship is never automatic; there are no guarantees of success when it comes to running a business.
Also, business success doesn’t base on luck either – it depends on the owner’s foresight and organisation. Even then, of course, there are no guarantees of success. You just have to know what you are doing and how to go about it.
Is entrepreneurship for you?
It is an uncomfortable fact of business life that four out of five startups end in failure. So is entrepreneurship for you? How do you make your startup a success?
So many startups have failed to last long, especially, with the economic downturn that’s making things even tougher for new businesses. So, how can you avoid the pitfalls that trap so many fledgling businesses?
Entrepreneurship and risks of running a business
As a small business owner, it is important to always understand why some startups failed and make sure you don’t make the same mistakes.
Why so many startups fail to last long? Although businesses fail for a multitude of reasons, the underlying issues are surprisingly common.
As a small business owner, there are some risks associated with starting and running a small business that can not be eliminated. However, you can improve your chances of success with good planning, preparation, and great insight.
What makes a great entrepreneur
It’s an undeniable fact that entrepreneurship requires dedication as well as commitment. You can’t just be a successful entrepreneur without these qualities.
To be a great entrepreneur, you should start by evaluating your strengths and weaknesses as a potential owner and manager of a small business. Carefully consider each of the questions below:
#1]. Are you a self-starter?
It will be entirely up to you to develop projects, organise your time, and follow through on details. Do you see yourself as a good manager?
#2]. Do you get on well 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.
How well do you get along with different personalities? Can you deal with a demanding client, an unreliable vendor, or a cranky receptionist if your business interests demand it?
#3]. How good are you at making decisions?
Small business owners are required to make decisions constantly and often quickly, independently, and under pressure. Do you see yourself as a good decision maker?
#4]. Do you have the strength?
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 work days every week?
#5]. How well do you plan and organise?
Research indicates that poor planning is responsible for most business failures. Good organisation of financials, inventory, schedules, and production can help you avoid many pitfalls.
#6]. Is your drive strong enough?
Some business owners burn out quickly from having to carry all the responsibility for the success of their business on their own shoulders.
Running a business can wear you down emotionally. Strong motivation will help you survive slowdowns and periods of burnout.
#7]. How will the business affect your family?
The first few years of business start-up 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.