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In business there are no guarantees. There is simply no way to eliminate all the risks associated with starting a small business - but one can improve their chances of success with good planning, preparation, and insight. Before starting a business, one needs to evaluate their strengths and weaknesses as a potential owner and manager of a small business.
Entrepreneurs are self-starters. It is entirely up to them to develop projects, organize their time, and follow through on details.
Entrepreneurs get on well with a variety of 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. They need to be able to deal with a demanding client, an unreliable vendor, or a cranky receptionist if their business interests demand it.
Entrepreneurs must be good at making decisions. Small business owners are required to make decisions constantly - often quickly, independently, and under pressure.
Entrepreneurs must have the physical and emotional stamina to run a business. Business ownership can be exciting, but it's also a lot of work. They should be able to face six or seven 12-hour work days every week.
Entrepreneurs must be able to plan and organize. Research indicates that poor planning is responsible for most business failures. Good organization of financials, inventory, schedules, and production can help entrepreneurs avoid many pitfalls.
Entrepreneurs must have a drive that is strong enough. Running a business can wear people 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 helps business owners survive slowdowns and periods of burnout.
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 business owners to be able to trust that they will be supported by their family during this time. There also may be financial difficulties until the business becomes profitable, which could take months or years. When starting a business, entrepreneurs may have to adjust to a lower standard of living or put family assets at risk in the short-term.
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