Q: I'm trying to decide whether to go out on my own and start a retail clothing business.
With a lot of experience in my field, I know I can operate the business, but I have questions about what else is involved.
Is there a profile of what it takes to succeed?
A: The fact that you are looking for success criteria indicates a realistic approach to entrepreneurship. Many folks jump in with both feet and ask questions later.
Entrepreneurs are generally inspired by at least one of two factors тАФ independence and financial gain. Independence is sought to take risks and escape from other people's direction.
Many seek a haven from corporate bureaucracy.
They want to be their own master, have a strong need for achievement and the freedom to make decisions.
In short, they want the freedom that they did not have as employees.
The motivation for financial gain is generally considered to be unlimited. Importantly, the gains that are possible in new businesses must be great enough to offset the high degree of risk.
Many entrepreneurs are so focused on escape that they ignore the unbalanced relationship between risk and reward and forge ahead in a high-risk enterprise without taking the prudent steps to minimize risk, e.g., preparing a good business plan.
In a Small Business Administration study, five characteristics were identified as the most important predictors of an entrepreneur's success.
тАвDrive is the most important attribute. New small-business owners can expect long hours, high stress and endless problems as they launch a business. The ability to maintain the necessary stamina should not be confused with the desire to succeed, although they are often interrelated.
тАвThinking ability encompasses creativity, critical thinking, analytical abilities and originality.
тАвPeople skills are the ability to motivate employees, sell customers, negotiate with suppliers and convince lenders. Personality plays a big part in success in this area.
тАвCommunication skill is the ability to make yourself understood. Part of this is the acknowledgment that muddled or abusive communications go unheeded.
тАвTechnical ability speaks to the need for entrepreneurs to know their product and their market.
They must be experts in their field to operate their business with ease.
Finally, contact your local SCORE office and speak with a veteran counselor to get an objective assessment of your probability of success.
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