There is more to entrepreneurship than just the business itself, and becoming a successful entrepreneur is not as easy as eating cake.
Starting or launching a new business is not as easy as many people might have thought most especially when you are a young entrepreneur.
Successful entrepreneurs do not look to take the easy route and be part of the crowd. But what successful entrepreneurs do have in common are traits such as a strong work ethic, persistence and discipline.
The fact is that it’s not just about launching your new business, it also has to do with making sure that you know what you are doing and how to do it.
No successful entrepreneur will tell you it’s easy to make it and become as successful as you can ever imagine. This is why it’s important to always remember that there are no guarantees of success when it comes to running a business.
It is an uncomfortable fact of business life that four out of five startup end in failure. So is entrepreneurship for you?
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?
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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 continue to struggle to survive? Although businesses fail for a multitude of reasons, the underlying issues are surprisingly common.
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.
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.
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]. What type of an entrepreneur are you?
Are you a self-starter or a slow and steady type?
The fact is that entrepreneurship varies in size, level of involvement, fund required etc. So what type of an entrepreneur are you? Are you the type that can work on a new business idea? Are you looking at carving out a new market niche?
Are you a slow and steady type of an entrepreneur that likes to take up existing businesses? Will an existing business appeal to you and offer the financial potential you are looking for?
Always remember that 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]. Human relationship and personal strength
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?
Do you have the stamina? 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?
#3]. Quick thinking, good decision making and planning
How good are you at making decisions?
How quickly can you think especially when you are under pressure? Do you see yourself as a good decision maker?
Be mindful of the fact that as a small business owner, your ability to make good decisions as quick as lightning will be constantly tested. This is because small business owners are required to make decisions constantly and often quickly, independently, and under pressure.
Research indicates that poor planning is responsible for most business failures. So how well do you plan and organise? Good organisation of financials, inventory, schedules, and production can help you avoid many pitfalls.
#4]. Mental strength, motivation and quest for success
How responsible are you? Is your drive strong enough?
Running a business can wear you down emotionally. So, how strong are you? You must examine your strengths and your weaknesses before make that decision to be an entrepreneur.
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.
Running a business requires more than the fund to finance the business. As much as the money is needed, it is equally important, if not more so, to include your personality in the equation. After all, it’s this personality who is going to be running the show.
#5]. Families and friends
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.