Are You Cut Out to be a Small Business Owner?

I think that would be a lot of answers to this question.  I think the most common one you would  come across would be, “I would love to work for myself but I have no idea what I would do.”  Or possibly, “I don’t know that I would have the dedication it takes to own my own business.”  Well, if you are wondering what questions you need to ask yourself before you start out on the journey of entrepreneurship, I already did the legwork for you.  Thanks to the Small Business Administration for putting together a great list of questions (which is where I got all my information).

You should start your small business by asking yourself these questions:

1. Am I a self starter? – This is important for the obvious reason that when you own your own business, there is no one above you to tell you what to do.  While this may be one of the main reasons people are drawn to the idea of owning their own business (it’s my main reason to be honest), it can also be your ultimate downfall.  If you aren’t a task oriented person or are the sort of person who has to have someone tell you what you need to do next, then owning your own business may not be the right choice for you.
2. How well do I get along with other people with different personalities? - You will have to deal with people that you don’t like as the owner of your business.  You will have clients who are rude and crass and just all around annoying.  However, as an entrepreneur, you will have to treat them graciously.  Remember – the customer is always right (even if they are rude).  If you think this might be something that you would have a hard time with, consider hiring someone who is patient and does will in customer service to do it for you.  Otherwise, I would recommend taking the time to learn some anger management techniques to help you cope when dealing with this clients.
3. Am I good at making decisions? - As the head of the company you will be the ultimate decision maker, there is no passing the buck.  If you are the kind of person who gets into hour long conversations about where to go to dinner that consist of you and the other person asking each other where to go – then you might want to rethink setting out on your own.  Or, before you leave your day job, get yourself into a position where you will be able to take part in making key decisions.  This can help build your decision making confidence for the future.  And just for the record, flipping a coin is not a recommended way to make decisions that may determine the fate of your business.
4. Can I handle the mental and emotional stress of owning a small business? - Owning your own business may allow you to buy that house in the Bahamas you’ve always wanted and maybe someday, years down the road, you might be able to move there full time and run your business from the comfort of your deck chair.  But until then, you will have to live and breathe your business.  No one is going to make it happen for you – your business will go as far in the world as you make it go.  It’s a lot of stress, and if you are the sort who can’t even handle doing two things at once, then it might be time to start honing your multitasking skills (or refilling your prescription for anti-anxiety medication).
5. How well can I plan and organize? – In order to get a loan, you will have to have a very detailed business plan and a very detailed and clear picture of where you want your business to go in the future.  Planning and organizational skills are something that a small business owner absolutely must have.  You will have to manage your income to be able to purchase new inventory while also having enough to purchase basic office supplies and still be able to pay the rent each month.  If you can’t organize yourself adequately, you are doomed for many sleepless nights spent worrying.
6. Do I have the attitude and drive to maintain my motivation? – Trust me, this is another thing that you will absolutely need to have in order to make it in the world of small business.  If you can’t maintain your motivation, you are really going to hate yourself when you close up shop four months into your endeavor because you just don’t want to deal with it anymore and you think back on all the money you invested in yourself.
7. How will this business affect my family and my social life? – Owning a business is a huge commitment of time.  Especially when you are first getting your operation up and running.  When you first open your doors, odds are you will be your only employee which means that you can expect to be working all the shifts Monday through Friday, plus overtime for the weekend shift.  Plus the time you spend at home working on the finances.  Plus the time to meet with clients outside of office hours.  The list goes on and on and on.  You need to consider whether the costs are worth a pay off that you may not see for several years.

Now, don’t think that I am discouraging you from going forth and taking on the business world on your own.  But it is important to think about why you want to get out there on your own, how you are going to do it, and if you have the will to commit to yourself the time and energy that your business will take away from other parts of your life.

What about you?  What do you think are the most important questions to ask yourself before opening up shop?