Am I an Entrepreneur?
Whatever your reasons for starting up, be clear about your
business and personal aims and set yourself goals. Thousands
of new businesses fold because their owners did not set up,
or even identify, either business or personal aims.
The key aims of a business are known as 'the business mission
statement'. You may be surprised at how useful your own business
mission statement can be in keeping you pointed in the right
direction, because if you have a firm idea of your aims and
where you want to go, you are more likely to succeed.
These are some examples of the points you might make in a
business mission statement:
Example of a business mission
- To offer a first class business and personal minicab service
throughout Anytown, exclusively using Mercedes cars.
- To be the leader in the business and at the top end of
the personal minicab market, and to have a high-profile local
business within 2 years.
- To make 40% profit on the money used to start the business.
- To expand the business from 5 cars to 10 cars within 3
years.
What goods and services am I going to provide?
You have probably already got some plans about what you want
to do. Even so, it is worth looking into other business ideas.
And remember, you don't need a bright new idea to have a good
business. However, usually it is better to stick to what you
know when deciding which type of business to start.
Start from scratch or buy an already running business?
The business that needs most careful thought is the one you
start from scratch. No matter how thoroughly you research your
market, you are never going to be sure how good the idea is
until you are actually up and running. If you are offering
a service or product with a difference, you will probably grow
slowly at first, while your market learns about you. To look
at it positively, an entirely new business may be the best
way to take advantage of a gap in the market, and there would
be no price to pay for "goodwill".
If you are worried about starting from scratch, you might
want to think about buying a business that is already running.
If you decide to buy a business, get professional advice before
you make any commitment, as it could involve a great deal of
money!! Alternatively there is the option of operating a franchise.
A franchise is when you buy the right to use the trading name
and system of a business that is already running.
Have I the right knowledge?
As an employee you are dependent on your employer. But when
you start a business, you are dependent on your own ability.
If you can honestly agree with each of the 16 characteristics
and points below, you have got what it takes. If not, don't
be too worried. At least you know your strengths and you can
work on your weaknesses.
Self-analysis:
- I am realistic about my capabilities.
- I am self-disciplined and I do not let things drift.
- I have the full support of my family.
- I am ready to put in 7 days a week, if necessary.
- I can get on well with people.
- I can make careful decisions.
- I can cope under stress.
- I do not give up when the going gets tough.
- I can learn from mistakes.
- I can take advice.
- I am patient, and I expect a long haul.
- I can motivate people.
- I am in good health.
- I am enthusiastic.
- I know about the risks.
- I have specific aims.
Have I thought about the practical realities?
Think about your exit strategy, if you need to/want to sell
you business. Look at your business assets and whether it would
be easy to sell them if necessary. If you have a specialized
business, even if it is doing well, you might have to wait
a long time before you find a buyer.
Although there is no doubt that running your own business
can be very satisfying, there is also an enormous amount of
hard work involved and problems to be encountered. As a potential
business owner it is important that you can foresee these problems
so that they can be dealt with as quickly as possible.
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