Want To Be An Entrepreneur? Think Again!

Unfortunately a business atmosphere is anything but friendly. In business, there are no promises or guarantees for success but there are many for failure. Many times success is made or lost on one person's ability to organize and execute the correct elements of business. Even though there is no way to eliminate all the risks associated with starting a small business, you can reduce risk and improve your odds of success with proper planning, preparation, and insight. A good place to start is by evaluating your strengths and weaknesses as a potential owner and manager of a small business. You might want to carefully consider each of the following questions:

Are you a go-getter, self-starter? You will be the one who will be developing new projects, organizing time, and following through on the many small but important details.

You have to be a communicator and have the ability to get along with different personalities. Business owners have to develop good working relationships with a variety of people including customers, vendors, staff, bankers, and professionals such as lawyers, accountants, or consultants. Would you be able to deal with a demanding client, an unreliable vendor, or a cranky receptionist if your business interests demand it?

Are you a good decision maker? In your role as owner of a Small business you will be required to make decisions quickly and constantly - often under a lot of pressure. It's your decisions that drive the business into success or ruin. There are not excuses or anyone else to blame; it's all on your shoulders.

Being a Small Business Owner is very demanding on your physical and emotional state; would you have the stamina to follow through in a crises? Being an owning your own business can be exciting, but it also carries the burden of responsibility and it's a lot of work. Can you face six or seven 12-hour workdays each week - week after w eek? Are you ready to do what ever it takes to see your project become successful?

How about organizing, how good are you at planning and organizing? The simple fact is and research indicates, that poor planning is responsible for most business failures. Good organizational habits concerning financial, inventory, schedules, marketing and production, can help you avoid many pitfalls.

Do you have a strong enough desire? Without desire running a business can wear you down emotionally. Ofter, business owners burn out rather quickly from having to carry the burden of responsibility for the success of their business on their own shoulders. Just the fact of saving face in front of a spouse, neighbor, partner, family community is a strong motivational force. Facing all elements head-on with the will to win, will help you survive slowdowns and periods of burnout.

The more you throw yourself into your new business the more it will effect your family. Are you ready and willing to face family pressures? The first few years of business start-up can be very trying on family relationships. It's important that family members know what to expect and for you to know you have their support during this time. You may also find yourself having financial difficulties until the business reaches a profitable state, which could take months or even years. You may possibility have to reevaluate and adjust to a lower standard of living or put family assets at risk in the short-term.

If Being Self-Employed Is So Great - Why Do So Many Small Businesses Fail?

There are no automatic answers, success in business is never secured. Success isn't strictly based on luck - although a little never hurts. It depends primarily on the owner's foresight and organizational skills. But even given a perfect climate, business's fail.

Your decision to start a small business is risky to say the least, 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. I believe that estimate to be low. It is my experience that more like 70% fail within five years and 50% of those are in the first two years. Small Business is a tough challenge even for the most determined person. But in the end it's worth the experience.

Here are a only few reason out of hundreds, why small businesses fail.

Lack of experience

Lack or concentrating

Not following regulations

Not keeping up with IRS payments

Insufficient capital (money)

Poor location

Poor Preparation

Poor management

Poor or no marketing

Over-investment in fixed assets

Poor or lack of credit

Personal use of business funds

Pilferage from employees and family

Not keeping up with market conditions

Unexpected growth

Here Are More Reasons Why Small Businesses Fail

I know it looks dismal and I don't meant to frighten you away, but I would rather prepare you for the the many pitfalls you will experience then see you blind sided. One big problem with people who chose to enter into self-employment is they tend to underestimate the difficulty of starting a business. Start-up is by far one of the biggest obstacles entrepreneurs face. However, you can be successful if you are patient, willing to work hard, and stay the course.

And The Rewards Are?

Admittedly, there are many reasons why you should not start your own business. But if you have a passion for it, the advantages of business ownership far outweigh the risks.

Self-employment, you are the boss.

All your hard work and long hours directly benefit you, rather than making someone else rich.

Earning and growth potential are unlimited.

A new venture is a challenge that is as exciting as it is risky.

It's like playing a challenging game and coming out the winner.

Running a business makes you a valuable part of your community.

If you decide you want to be a small business owner there are countless books and courses to assist you in your venture. There are agencies like SCORE (private) and SBA (government) that will assist you. The Internet offers countless places of information and guidance and your local library is a source of valuable books and manuals. Learn the regulations, local, state and Federal as well as the tax codes. Learn how to market, because without marketing no one will even know you have anything to offer. Stay truthful, honest and forthright in all your business dealings and maybe, just maybe you will be the next Warren Buffet. Good luck and God speed.