Is Entrepreneurship For You? { For the most part..... (my answers in blue)
In business, there are no guarantees. There is simply no way to eliminate all the risks associated with starting a small business - but you can improve your chances of success with good planning, preparation, and insight. Start by evaluating your strengths and weaknesses as a potential owner and manager of a small business. Carefully consider each of the following questions:
Are you a self-starter? It will be entirely up to you to develop projects, organize your time, and follow through on details. I can be, have been, especially if I see it as necessary.
How well do you get along with 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. Can you deal with a demanding client, an unreliable vendor, or a cranky receptionist if your business interests demand it? I am better at this than I used to be.....I would probably have a hard time with an unreliable vendor. I think I would need to learn more about motivating employees. With a family I have learned to better, but not perfectly, leave stress from things like finances out of the interactions with others.
How good are you at making decisions? Small business owners are required to make decisions constantly - often quickly, independently, and under pressure. Not good when it comes to shopping, other than that, I might be a bit slow. I am thinking at the start of a business a lot of any quick decisions would be involved with customers, and I would lean toward good customer service.
Do you have the physical and emotional stamina to run a business? Business ownership can be exciting, but it's also a lot of work. Can you face six or seven 12-hour workdays every week? I am thinking not alone I don't. There is no way I could do the 12 hour workdays with a family at home. I've been thinking a lot about this. This is my main obstruction in my view at this point, maybe if I did this in 5 years when my youngest is in school and had a partner that would do a lot of evening shifts? At least until we could get a reliable employee or two? (remember, small business. I'm really not aiming for wealth)
How well do you plan and organize? Research indicates that poor planning is responsible for most business failures. Good organization of financials, inventory, schedules, and production can help you avoid many pitfalls. I am a good organizer. Esp. of finances and inventory, and I don't think scheduling would be a problem (other than previously mentioned with kids and 12 hour days). What is meant by production? I am not sure that applies to this type of business.
Is your drive strong enough? Running a business can wear you 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 will help you survive slowdowns and periods of burnout. That is why you train good employees.... Seriously though, I understand to some extent the stresses involved. Am I motivated enough? I honestly don't know, I think I would have to give it my best shot.
How will the business affect your family? 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 you to be able to trust that they will support you during this time. There also may be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk in the short-term. Yep. Think about this a lot. Financial difficulties are well known to us, familiar ground, so I'm not too worried about that at this point. I was hoping the older children would be interested in helping the family business, but I got a flat out no from Adria. She doesn't think she'd get paid,heh.
Why Small Businesses Fail
Success in business is never automatic. It isn't strictly based on luck - although a little never hurts. It depends primarily on the owner's foresight and organization. Even then, of course, there are no guarantees.
Starting a small business is always risky, and the chance of success is slim. According to the U.S. Small Business Administration, roughly 50% of small businesses fail within the first five years.
In his book Small Business Management, Michael Ames gives the following reasons for small business failure:
- Lack of experience damn. (Although stephen has management experience)
- Insufficient capital (money) also, damn. (small business loan anyone?)
- Poor location I'm hoping near our material-less Wal-mart or near the Dollar Tree would be a good location.
- Poor inventory management I think I could be good at this. The biggest thing I can think of now, would be keeping things up to date esp. if we don't get a lot of traffic in the beginning.
- Over-investment in fixed assets huh?
- Poor credit arrangements help?
- Personal use of business funds forewarned. I think the only temptation would be because of financial hardship mentioned above, not to live extravagantly or anything, but if the fridge were empty and someone needed new shoes....that would be hard.
- Unexpected growth not expected. heh.
Gustav Berle adds two more reasons in The Do It Yourself Business Book:
- Competition of course
- Low sales always a possibility
More Reasons Why Small Businesses Fail
These figures aren't meant to scare you, but to prepare you for the rocky path ahead. Underestimating the difficulty of starting a business is one of the biggest obstacles entrepreneurs face. However, success can be yours if you are patient, willing to work hard, and take all the necessary steps.
On the Upside
It's true that there are many reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks.
- You will be your own boss. woot!
- Hard work and long hours directly benefit you, rather than increasing profits for someone else. nice.
- Earning and growth potential are far greater. sweet.
- A new venture is as exciting as it is risky. I'm not excited so much as just liking the idea of having this job to do. To dig in and:
- Running a business provides endless challenge and opportunities for learning. yep.
Thanks for listening. Any opinions out there? Maybe I could take business classes for the next five years and hope no one else does it first. Darn. And what about the availability of store locations right now?! Crap.
