Entrepreneurship: are you ready?

By Janet W. Christy

I was asked to speak at a small business event about Entrepreneurship: Are You Ready?  My experience in working with Small Business Development organizations and projects and doing consulting and training for Woman/Minority Owned Businesses has shown me that when people talk about becoming (or being) an entrepreneur they primarily mean they want to start a business (or have one).  With that in mind I prepared a list of important questions for my audience to ask themselves.  Below are those questions along with the supplementary questions and points.

Definition of Entrepreneur (according to Wikepedia http://en.wikipedia.org/wiki/Entrepreneur):  Term applied to the type of personality who is willing to take upon herself or himself a new venture or enterprise and accepts full responsibility for the outcome. 

Here are some important questions to ask yourself whether you have a business, are starting one or are thinking about starting one.

Why do I want to start this business? (Or why did I start it?)

oNeeds to be more than: “I didn’t want to work for someone else anymore.”

oIf X can do it, so can I, may or may not be true

oRemember having a passion for something is not enough

oBe careful of: “So I can be at home with my children” or “So I will have more control of my time”.

Do I know what my product or service is (will be)?

oBe sure you are clear

oDon’t try to be too much

oDon’t group things that are different

oToo much and too different make you look as if you’re not good enough at something specific

oCan you translate your product or service into a benefit

Who are my customers, clients, prospects?

oIf this is not clear you will be wasting time, effort and money marketing and selling

oEveryone or anybody are not good answers

oBanks say this is the number one question loan seekers cannot answer

oIt takes research to truly answer this

Do I understand what makes my prospects spend money?

oYour product/service doesn’t make them spend money; their need or desire does

oIt takes research to know what makes them spend money

oNot understanding this will cause you to waste a lot of time and money and possibly to fail

Does it matter to my prospects that my business is Minority or Woman Owned?

oThey must have a reason

oTypical reasons are social consciousness or money

oIf they do not care, use another marketing angle

oResearch is necessary to know this

Am I prepared to spend the time and money necessary to market/sell my products and services?

oBecause research is necessary, you must do it or have it done to be successful

oMarketing and sales must be done whether you like it or not

oYou must do it or pay someone to do it

Where will I get money to start/run my business?

oFirst, do you know how much you need?

oIf you plan to start part-time or on a shoestring, be sure you can be successful

oIf you go to a bank you must address the other questions in this list

oRemember that with investors of any kind you lose some control

oPassion and Good Ideas are not financed, potential profit is financed

oDo not expect to receive grants to start or run your business – they do not exist

Do I understand the difference between should and will?

oJust because prospects, banks, investors, employees, etc. should doesn’t mean they will

oBelieving that people will because they should sets you up for failure or at the least disappointment

  and frustration

oResearch is vital to know if prospects and banks/investors will do what you think they should

Who are my competitors and how many of them are out there?  Are they succeeding?  How

many have started and closed in the last 5 years?

oDon’t start a business in a field that is already crowded unless you have something very unique

oDon’t start a business in a field where people are not succeeding unless you know why they are not

  succeeding and you know (not think) you can do better

oIf you do not know your competition how will you compete?

oBe sure you have enough money, time and people to compete

oResearch is necessary to understand the competition

Do I have enough time, energy and money to run a business?

oA good question is “Do I have the stomach for it”

oAnother good question is “Do I have the stamina?”

oYou must do the research, understand the situation and develop the plans so that you know what it

  will take to start and run a business

oThe research will also help you put passion and expectations in perspective

Do I have a clear understanding of the obstacles and pitfalls of starting and running my

  business?  Do I have a plan to deal with them?

oThis is very important, but is specific to your business type and your situation

oThe need for this understanding is why research is vital

oThe need for planning is why you hear “Do you have a Business Plan?” all the time

How thick is my skin? (Or how sensitive am I to these words: “NO”, “You’re too small/new”,

  “We already have a supplier.”)

oCan you hear these words and move on to the next loan officer or prospect?

oCan you use these words to help you decide if you need to modify, redirect or fold your tent?

oCan you take these words as opportunities and not obstacles?

How prepared are you to follow direction and jump through hoops?

oIf a prospect has a process can you accept the fact that you must follow it, will you allocate the time

  to do so?

oDo you understand that the directions or hoops are part of the “test”?

oDo you recognize that the directions or hoops do not have to make sense to you?

oRemember that the customer is always right

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