Starting your own business is a considerable risk. With as many as 50% of businesses failing in the first five years, you have a good reason to be wary. So how do you know if your business will succeed or fail, and would you make a good entrepreneur? Read on to find out.
You Have Ambition
To be a successful entrepreneur, you need to have a lot of ambition, so if you feel stifled by the company you work for, it might be time to change. For example, you might want to be the CEO, but if there is a lot of competition for the best jobs at the company you work for, starting your own business could be an excellent shortcut to take. That way, you can start enjoying the fruits of your labor rather than climbing the career ladder.
You Have Goals
If you have a clear set of goals for a business, but they aren’t going to be implemented by the company you work for, starting up your own business could offer you a great solution. You will be able to use your own ideas and work the way you want to. Whether you succeed or fail is down to you, but at least you will know that you took a chance and tried to achieve your goals.
You Are Motivated
Big ideas are not worth anything unless you have the drive and motivation to put them into practice. Otherwise, you will always be the guy who stands around the water cooler and tells everyone what you could be doing rather than getting on and doing it.
The first year in business is challenging, and many companies fold because their owners didn’t realize how difficult it will be to start their own business. However, you need to be able to keep yourself motivated and not give up when the going gets tough if you want to succeed on your own.
You Have the Knowledge
If you don’t have the knowledge to run your business, you are more likely to fail. You can teach yourself or outsource some things you will be responsible for, such as accountancy, hiring staff, and IT. However, you should have good knowledge about the industry you are trying to make money from, such as plumbing, hairdressing, or manufacturing, and ideally have worked in the industry for several years.
Ability to Budget
You might know that you need to rent premises and buy tools to set up your business, but more costs will be involved. Things such as your small business insurance cost can eat into your profits but could cost you more if you don’t have it. You must budget for everything to stay afloat, especially in the first year. Make sure you have budgeted for your small business insurance cost, stationery, energy, staff, and anything else you need to succeed.
You could make a brilliant entrepreneur if you have the above attributes. However, the only way to be sure is to take the leap and give it a go.