10 Ways To Know If You Are An Entrepreneur

When I decided to start an entertainment company in 2006, I made sure I was already prepared. Prepared mentally for the emotional and personal strain running a business would take on my mind and life. Prepared “somewhat” financially for the enormous amount of expenses it will take to jump start the business (ie. marketing, state and federal registrations, trademark, daily operational needs, etc). And I was prepared for the success. Because I knew that with determination and constant nurturing, my business would blossom into a major brand and be financially successful.

But, many new entrepreneurs do not prepare themselves. Some are just infatuated with the idea of being their own boss. Not realizing that before you make it to the mountain top, you got to first strap on your boots and hike up that bad boy! Conduct your own self-evaluation. See if you are that type of person that will give it 110%. Do some research. READ, READ, READ! The more you read, the more information you can learn regarding the business you’re trying to get into, its finances, the legalities, etc. If you have a library card, cool…go to your local library. We’re in a recession. So there are other ways to find publications to read without spending money. One way is checking the internet! I personally love the internet. It’s very convenient for me. I can find information fast, read about it, and then implement those things into my business.

So before you jump out the window, thoroughly think it through. Make sure being an entrepreneur is something you REALLY can devote the time, money, and passion to. Instead of loathing for the attention of being the Boss Man or Boss Lady, be honest with yourself first. I’m sure you’d rather be prepared than unprepared prior to starting this process.

As I mentioned, I read. So while surfing the net, I came across this interesting article at the WallStreet Journal website titled “So You Want to Be an Entrepreneur?”. The article touched on being prepared and also lists 10 questions you should ask yourself in order to see if you have what it takes to be an entrepreneur.

Here are WSJ’s 10 questions and very realistic views for each:

1. Are you willing and able to bear great financial risk?

…you must be realistic about the financial risks that come with owning a business — and realize that you could very well lose a sizable chunk of your net worth. Entrepreneurs should be sure that “if they lose this capital, it either won’t destroy their financial situation, or they can accept the concept of bankruptcy,” says Scott Shane, an entrepreneurship professor at Case Western Reserve University in Cleveland. “Some people thrive on the financial risk; others are devastated by the thought of losing even $10,000.”

2. Are you willing to sacrifice your lifestyle for potentially many years?

Creating a successful start-up often entails putting in workweeks of 60 hours or more and funneling any revenue you can spare back into the business. Entrepreneurs frequently won’t pay themselves a livable salary in the early years and will forgo real vacations until their business is financially sound. That can often take eight years or longer, says William Bygrave, a professor emeritus of entrepreneurship at Babson College in Wellesley, Mass.

Jennifer Walzer learned those lessons the hard way. In 2002, after being laid off from a $100,000 consulting job when the company closed, she started Backup My Info! Inc., which sells online data-backup services to businesses.

For the first year, the New York-based company brought in just $29,000 in gross revenue. Ms. Walzer didn’t pay herself a salary until the third year, and even then it was a slim $30,000. She could have taken more out, but she wanted to shovel as much money into the business as possible to keep it financially sound.

Now that her business generates about $2 million in annual revenue, the tables have turned. Ms. Walzer says she earns more from the business than she did as a consultant,…

3. Is your significant other on board?

You can avoid the heartache by talking at length with your spouse and family about how the business will affect home life, including the time commitment, changes in daily schedules and chores, financial risks and sacrifices. They must also understand the huge financial gamble they’re making with you.

4. Do you like all aspects of running a business?

In the early stages of a business, founders are often expected to handle everything from billing customers to hiring employees to writing marketing materials. Some new entrepreneurs become annoyed that they’re spending the majority of their time on administration when they’d rather be focused on the part of the job they enjoy, says Donna Ettenson, vice president of the Association of Small Business Development Centers in Burke, Va.

5. Are you comfortable with making decisions on the fly with no playbook?

With a new business, you’re calling all the shots — and there are a lot of decisions to be made without any guidance. You might not be used to that if you’ve spent years working in corporate America, says Bill Wagner, author of “The Entrepreneur Next Door,” a book that lays out the characteristics of successful entrepreneurs.

“For most entrepreneurial ventures, there’s no structure,” he says. “You’re going into a business, and nobody has told you how to be successful.”

6. What’s your track record of executing your ideas?

You might have a wonderful concept, but that doesn’t mean you possess that special mix of drive, persuasiveness, leadership skills and keen intuition to actually turn the idea into a lucrative business. So, examine your past objectively to see whether you have assumed leadership roles or initiated solo projects — anything that might suggest you’re good at executing ideas.

7. How persuasive and well-spoken are you?

Nearly every step of the way, entrepreneurship relies on selling. You’ll have to sell your idea to lenders or investors. You must sell your mission and vision to your employees. And you’ll ultimately have to sell your product or service to your customers. You’ll need strong communication and interpersonal skills so you can get people to believe in your vision as much as you do.

If you don’t think you’re very convincing or have difficulty communicating your ideas, you might want to reconsider starting your own company — or think about getting some help.

 

8. Do you have a concept you are passionate about?

If you’re not that exuberant about how you’ll be spending your time — or the business concept itself — running a business is going to be a rough ride.”If you hate doing paperwork, the last thing you want to do is become a bookkeeper,” Ms. Ettenson says. “If you’d rather be outside taking people into the wilderness, then that’s the type of business you should be in.”

9. Are you a self-starter?

Entrepreneurs face lots of discouragement. Potential buyers don’t return
calls, business sours or you face repeated rejection. It takes willpower and an almost unwavering optimism to overcome these constant obstacles.

…”The Hypomaniac Edge,” theorizes that many well-known entrepreneurs have a temperament called hypomania. They’re highly creative, energetic, impatient and very persistent — traits that help them persevere even when others lose faith.

10. Do you have a business partner?

If you don’t have all the traits you need to run the show, it’s not necessarily a hopeless endeavor. Finding a business partner who compensates for your shortcomings — and has equal enthusiasm for the business concept — can help mitigate the risks and even boost the odds of success.

Someone who likes to take risks and be in the spotlight, for instance, might choose a cautious partner who prefers to work in the back room. “If they’re willing to work with that person, and not just look at them as a wet blanket, then it can be great,” Mr. Gage says.

But taking on a partner isn’t a light decision. Many partnerships split due to conflicts over everything from attitudes about money to miscommunication and contrasting work ethics.

Mr. Gage recommends that potential partners spend several days hashing out the specifics of the business and how the arrangement will work to see if they’re compatible.

No matter what type of business you decide to go into, these are the types of things you should think about. It’s better to be prepared, than not. Although we all may hit a few rough spots on that hiking trail, and we may even slip and fall and have to start again at the bottom, just know that with these questions answered you will have a better chance at making it to the top of that mountain.

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