Do you have a great idea and wonder what it takes to turn it into a business? Do you think you have what it takes to be an entrepreneur? Are you committed to starting a business and just do not know where to start?
With very few exceptions, every business begins as a small business. The ability to make money and grow your start-up is largely based on the ability to understand business operations and make good decisions. And while many entrepreneurs seem to be naturals, many qualities of successful entrepreneurship can be acquired by hard work, education and application.
Whether you are trying to make an informed decision as to whether you would make a good entrepreneur, or you find yourself thrust into the role by factors beyond your control, NEOinc feels the following information will help you get started in the right direction:
- Attributes and Qualities of successful entrepreneurs
- Common Denominators of self-run businesses
- Assessment tools
- Business start-up checklist
Attributes & Qualities
Traditionally, entrepreneurial ability tended to be defined by four main attributes:
- Initiative
- Decision-making
- Innovation & Creativity
- Risk-taking
There are many qualities of successful entrepreneurs. A simple Internet search on “entrepreneur qualities” will give you a wealth of articles to read on the topic. Following is a short list of qualities frequently mentioned:
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Passion
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Curiosity
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Optimism
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Careful about money
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Competitive, and likes a challenge
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High energy
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Goal-setters
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Learn from failure
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Self-motivated
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Not easily discouraged
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Multi-tasker
Above all, you must not be afraid of hard work, and lots of it. As an entrepreneur, you will be solely responsible for the success of failure of your business. You will need to create and execute a strategic business plan, while addressing issues of financing, technology, accounting and operations. All this while bringing your product or service into reality and convincing people to buy it.
Common Denominators
In addition to some common attributes and qualities of entrepreneurs, there are some aspects of starting and running your own business that are common regardless of whether you are starting a service business, attempting to commercialize technology or building a business around new products. NEOinc recommends you closely examine these “common denominators” to identify where you might need assistance.
- Planning – you are facing the challenge of starting a brand new business. Whether your new entity will be built through innovation, finding an opportunity to capitalize on, buying a franchise, or building a better mousetrap, it will involve serious business planning.
- Financing – the number one request we get from entrepreneurs is how to attract investors. The hard truth is that most new business ventures are financed with your own money long before seed or angel investors will take an interest. Be sure you have working capital to keep your business running for up to a year without counting on outside investment. To attract investors, you will need a solid business plan. A demonstrated success does not hurt either.
- Hard Work – we said it above and we’ll say it again. Many people think getting started is the hard part and it isn’t. Implementing your business plan will be your biggest challenge and will take long hours. Be brutally honest with your self-assessment if you are considering becoming an entrepreneur, and make sure you do this before you quit your day job!
Assessment Tools
There are several entrepreneur assessment tools available on the Internet, many of them are free. While no tool can accurately predict your success as an entrepreneur, they can be quite valuable in helping you understand the strengths and weaknesses you bring into a new business, particularly if this is your first time.
Here are a couple free online assessments to try
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The Small Business Administration’s self-assessment tool. This one is particularly useful in that, it not only rates you, but also gives you pointers on what you should work on, including links to free online training, if appropriate.
The following series of questions put together by NEOinc should give you an idea of the minimum level of effort required.
1. Do you have a business plan that includes a description of your company, an industry overview, the management team and experience, your unique point of differentiation, your marketing/sales strategy, capital requirements/ownership structure, and financial projections?
2. Have you named your business and performed a search on the name?
3. Have you incorporated your business or started the process?
4. Do you have a Federal Tax ID Number?
5. Are you free to start a company without violating any agreements you may have signed with your current employer?
6. Do you understand the risks that come with entrepreneurship?
7. Have you planned for or secured business and health insurance?
8. Do you have the full support of your family?
9. Are you aware that receiving capital from friends or family can potentially cause problems down the road?
10. Do you have access to the necessary capital to start and maintain your business for at least one year?
If you answered yes to three or less questions, you may want to spend more time evaluating your business plan, developing a checklist, and working towards being able to answer yes to six or more questions. If you answered yes to four to six questions, you are well on your way. Keep in mind critical areas such as family support, employment agreements, and capital requirements, and work towards answering yes to all ten questions.
If you answered yes to seven or more questions, you are ready to truly dig in and focus on getting your business off the ground. Keep in mind you will have a considerable amount of work beyond the areas discussed in this questionnaire. Regardless of the number of questions you answered “yes” to, we at NEOInc are ready to assist you in the development of your business. Please contact one of our Incubators to schedule an interview with one of our staff.
