Could you run your own business?
Introduction Starting up your own business is both exciting and rewarding, but for many people it can be a daunting experience. It can also involve a number of risks, so it is important to understand the issues and challenges involved before taking the plunge and launching your venture.
It is not enough just to have a good business idea. You need to be sure there is a viable market for it, and you also need to have the right skills and temperament to make a success of the opportunity. Here we help you assess your personal abilities and resources in relation to those that will typically be required to start up and run your own business.
Assess your abilities and resources To get your new venture off the ground, there will be a mountain of tasks to complete, research to carry out, things to do and people to contact. It will be essential to have a thorough understanding of the information you need to find and the contacts you must make in order to pull your start-up plan together.
Whatever your personal starting point, there are some fundamental issues you need to address relating to your business idea, your personal aims and your own business ability.
You can start by asking yourself some vital questions:
Do you have the necessary capital and financial resources to start your business, to finance the purchase of any stock and equipment, and to pay your general living expenses while you go through the start-up phase?
Can you afford, and do you really want, to risk these resources? For example, you might have to take out a secured loan based on the value of your home. Have you considered the consequences of your business failing and possibly being forced to sell your house?
Do you have the commitment and self-discipline to get through potential hard times? There may be times when customer demands are particularly heavy and it will be up to you to make sure these demands are met. How will you cope with this, and are you prepared to put in the necessary hours to meet the demands of your business?
Are you confident that you will be able to negotiate with suppliers to get the best deals, be available and helpful to customers at all times, think clearly under pressure and take criticism without getting upset?
Are you confident enough about the level of demand your product or service will generate, and will you be able to assess how this might change over time so you can adapt your business operation to deal with fluctuating demand?
Do you have the determination to carry on when demand and sales are low?
While you may not have specific answers to these questions, it is very important for you to consider whether you can cope with the uncertainty involved with running your own business.
There is no single 'type' of person who becomes a sole trader, freelancer or small business owner. However, there are some personal characteristics that are typically seen in people who run a successful business, such as:
Logical, well organised and responsible (good at getting things done).
Confident and engaging (good with customers).
Able to communicate and get their point across (to staff, suppliers, funders).
Able to show leadership.
Single-minded, but able to take advice.
Flexible and adaptable.
Quick to take opportunities (and ready to take calculated risks).
Hard-working, committed and determined ('get up and go' type).
Thick-skinned (able to handle failure).
Able to come up with new ideas for the business.
This list is not necessarily exhaustive, and you do not need to have all these characteristics to be a success at running your own business. The key is to develop and adapt your own skills and characteristics as you gain more experience.
Understand the pressures The pressures of being the owner-manager of a small business are inescapable:
You will be staking practically everything on your own ability. If it goes wrong, there will be no one responsible but you.
You may have to work long hours and there will be times when things get on top of you.
You may get into debt in order to finance the enterprise and may have to manage without a regular income if the business cannot fund your salary or drawings, especially in the early days.
You will need to maintain your faith in the business, often in the face of others' doubts.
If you employ people, you will need to be positive and show leadership all of the time, even when you don't feel like it.
There will be times when you need to be tough and prepared to discipline employees or make difficult demands on your suppliers.
There will be times when you feel lonely and isolated.
You need to be polite and helpful even when an awkward customer is being difficult or demanding.
This may seem more like a nightmare scenario than a business dream, but you need to be the sort of person who can face up to and deal positively with such challenges.
Above all, you need plenty of confidence in yourself, with the energy and mental toughness to get through the more difficult times that you will inevitably face.
Contact Ashored for help and support with starting your business
