Construction and Contracting Business. Entrepreneur magazine
We’re glad you’ve chosen us to take this exciting journey with you—you’ll be a smarter traveler for it. Let the journey begin.
CHAPTER 2
Taking the Plunge
Get Ready to Be an Entrepreneur
Before they get started, some people worry if they have what it takes to be an entrepreneur. If this is you, stop worrying. We firmly believe anyone with the desire and the initiative can be an entrepreneur. And since you purchased this book, it’s likely you have both the desire and the initiative.
But just because you can be an entrepreneur doesn’t mean that now is the right time to take the plunge. This chapter will help you determine if you’re ready for entrepreneurship right now or if you should hold off for a bit.
The Entrepreneurial Personality
Every year, hundreds of thousands of people start their own businesses. But while most succeed (yes, that’s the truth!), many do fail. Why? One of the common causes of startup failure is lack of preparation.
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If you have a family, make sure they understand the emotional and financial sacrifices business success requires. When your family doesn’t support your business—if they’re always saying, “Can’t you leave that alone and come to dinner?”—it’s going to be tough to make your business work. If your family isn’t ready for you to become an entrepreneur, this may not be the right time to do it.
People come to the entrepreneurial path from different directions. Increasingly, some start fresh out of college or after a stint at home raising their kids or simply because the idea of actually retiring is abhorrent to them. Most, though, come to entrepreneurship straight out of the work force. And many of them dabble in their would-be business before they take the plunge completely, testing ideas on the side, while maintaining a day job. Quitting a full-time job to start a business isn’t something to be taken lightly. You should be sure now is the right time to get started. First, you need to ask yourself some questions: Do I have enough money? If you have a family, are they ready for this? Is there a need for a product or service like mine? Parts 1, 2, and 3 of this book will help you answer those questions.
Full Steam Ahead
Many successful entrepreneurs say a sense of urgency that made starting their businesses not just a desire but a necessity was their driving force. One entrepreneur’s advice: “You’ll know the time is right when you can honestly say ‘I’ll put my house, jewelry, and other personal collateral on the line to attain the startup money I need for the long-term rewards I deserve.’” We’re not recommending you put up your home (though more than a few entrepreneurs started that way). But that willingness to risk everything likely means you’re ready to start now.
What motivates potential entrepreneurs to stop daydreaming about business ownership and actually do something about it? While many people think one single incident—such as getting fired or being passed over for a promotion—is the impetus for becoming your own boss, most experts agree it’s usually a series of frustrations that leads to entrepreneurship.
A fundamental desire to control their own destinies ranks very high on most entrepreneurs’ lists of reasons for starting their own businesses. This need is so strong that entrepreneurs will risk family, future, and careers to be their own boss. Unable to feel truly fulfilled working for someone else, these individuals cannot be happy following someone else’s plan or taking orders from a boss. They’re often convinced that they have a better way, or an idea that would really revolutionize their industry—or at least their little corner of it—and working within a corporate structure is simply stifling that improvement.
But opportunity comes in many guises. It might be when potential customers start calling you, or perhaps a business in your area is failing and you know you can make it work. Or maybe you feel as if you’re underemployed (working below your potential salary or your skill level) or not putting your skills and talents to their best use. Perhaps there’s a need for the product or service you want to provide. Or you’ve simply figured out a better or a new way to do something.
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Need inspiration? Check out Ted.com/talks for inspirational talks on almost any topic, all advice and messages you can use to empower yourself to live the life you desire. While the site’s subject matter covers everything from fitness to raising kids, its target audience is anybody with an entrepreneurial spirit. Speakers of all kinds—including many entrepreneurs—offer new ideas, inspiring thoughts, and powerful motivation.
Reality Check
Once you’ve made the decision to break away, there are several things you should do before taking the next step. Conducting thorough market research is a must. Make sure you have enough cash—not only for the business, but to sustain your life—and discuss the decision with your family. (You’ll find out more about all these steps in Parts 1, 2, and 3 of this book.)
Remember, the rewards of small-business ownership are not instantaneous. You must be determined, patient, persistent, and willing to make sacrifices to ensure those rewards eventually do come.
You’ll need to prepare for the responsibilities that come with business ownership. When things go wrong, the buck stops with you. You won’t have the luxury of going home at 5 o’clock while the boss stays all night to fix a chaotic situation. Someone whose only desire is to get rich quick probably won’t last long owning his or her own business.
Through surveys and research, we know that successful entrepreneurs share some common personality traits, the most important of which is confidence. They possess confidence not only in themselves but also in their ability to sell their ideas, set up a business, and trust their intuition along the way. Small business is fiercely competitive, and it’s the business owners with confidence who survive.
Your Strengths and Weaknesses
It’s rare that one person possesses all the qualities needed to be successful in business. Everyone has strong suits and weak points. What’s important is to understand your strengths and weaknesses. To do this, you need to evaluate the major achievements in your personal and professional life and the skills you used to accomplish them. The following steps can help:
1. Create a personal resume. Compose a resume that lists your professional and personal experiences as well as your expertise. For each job, describe the duties you were responsible for and the degree of your success. Include professional skills, educational background, hobbies, and accomplishments that required expertise or special knowledge.
When complete, this resume will give you a better idea of the kind of business that best suits your interests and experience.
2. Analyze your personal attributes. Are you friendly and self-motivated? Are you a hard worker? Do you have common sense? Are you well-organized? Evaluating your personal attributes reveals your likes and dislikes as well as strengths and weaknesses. If you don’t feel comfortable around other people, then a business that requires a lot of customer interaction might not be right for you. Or you may want to hire a “people person” to handle customer service.
3. Analyze your professional attributes. Small-business owners wear many different hats, but that doesn’t mean you have to be a jack-of-all-trades. Just be aware of the areas where you’re competent and the areas where you need help, such as sales, marketing, advertising, and administration. Next to each function, record your competency level—excellent, good, fair, or poor.
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