1. Are you energetic and in good health? Starting and running a business generally requires a great deal of physical, as well as mental stamina. You must be prepared to work long hours if necessary and to "do whatever it takes". Getting a business off the ground involves a lot of planning and legwork. After that, the hard work never really ends. It is important to realize that many small business owners must work 10-12 hours per day (sometimes more), often 6 or 7 days a week in order to make their business successful.  If you are not physically and mentally up to that kind of commitment, and do not have someone you can rely on to take care of business when you can't, you need to think very seriously about your decision to move forward. It is possible the nature of your business does not require a substantial time commitment and will still allow for you to generate sufficient income, but only you can make that decision.

 

2. Are you highly motivated and self confident? You must have confidence, faith in yourself, and your business idea in order to be successful. If you are having doubts, is it due to nervousness or a lack of confidence? It is normal to be nervous. The key is to foresee possible "what if" scenarios and have a backup plan in place. Just as with everything else in life, things don't always go as planned and you must be able to deal with any challenges you might face. If you have any doubts in your own skills or abilities to successfully run your business, there is a good chance you are not ready. Seek training and education to gain knowledge in the areas in which you need help. Ask for guidance from others who have more knowledge and experience in business and utilize free resources such as the SBDC, SCORE, and SBA online training.

 

3. Are you organized and good at following through? It is important that you be organized, determined, and able to finish what you start.If you tend to procrastinate or lack self discipline, you will probably have a hard time running your own business. You will not be able to rely on others to pull your weight or pick up the slack. These can be tough skills to attain if they do not come naturally to you, yet not impossible. If you really want to pursue your entrepreneurial dream, know that you will need to work seriously on improving these areas or you will encounter difficulties getting your business started and keeping it running successfully.

4. Are you good at managing your time and making decisions? Time management is not a skill that comes easily to all. If you find you are often late to appointments, or are constantly underestimating the amount of time certain tasks take to complete, you should take that into consideration. Most likely, it is something you can overcome, but you will need to work at it. Decision making skills, however, are crucial. If you spend too much time making decisions (or even worse, are unable to make them), you will have problems moving forward. Motivational books, tapes, and seminars may be helpful in this area and should be utilized if you do not want to let go of your business ownership goals.

5. Do you have an alternate source of income to get by until the business is generating income? One misconception many new and would be business owners have is that the business will begin making money right away. Even if you are making sales on day one, that does not mean necessarily mean you are making money. You must take into consideration the amount of time it may take for you to draw funds from the business or begin getting paid.
Of course it is important to be optimistic about your new business venture, but being overly optimistic in regards to your financial outlook can be detrimental. It is important to be realistic with your financial projections and goals.

 

Opening any new business is always a risk and a challenge. There are no guarantees things will go as you planned. By being honest with yourself and making sure you are ready, willing, and able to tackle your dream, will give you the best chance for success.