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KNOW YOURSELF

Not everyone is cut out to be an entrepreneur. It takes a special talent. Some owners of small businesses have it and some don't. Before you invest time, energy, money and a piece of your heart, it's important to do some serious self-analysis. To answer such questions as: Am I prepared to work hard and make sacrifices? Am I self-disciplined? Do I have management ability? Am I experienced enough in this field? What do I want out of life? Are my goals realistic and attainable?

Studies have shown that entrepreneurs are persevering and not easily defeated. They thrive in a challenging environment and have a tremendous need to be in control. They turn diversity into opportunity. They are risk takers. They welcome responsibility, and they are willing and able to make decisions.

Moreover, successful entrepreneurs are patient and able to wait out the sometimes slow beginnings of a business. They also are able to learn from their mistakes, trust their own judgment and have an optimistic outlook.

Take a good look. Do those traits describe you? "Know yourself and be willing to work 60 hours a week. Starting a business is one of life's biggest commitments," advises Roy Nordman, director of Emerging Business Services Practice for the San Francisco office of Coopers & Lybrand.

Small business owner Nancy Wansick, of Wansick Graphics, echoes those sentiments: "My business has become my whole life. Day becomes night and work has become play."

It's obvious: you have to love your work. And if you choose a business that meshes with your personality (the answers to the above questions should tell you about your personality), those extra hours spent won't be as difficult. The key is to identify what you enjoy doing the most and then find a business opportunity that makes use of your skills and interests.

Assessing Your Skills, Education, and Experience

After completing the Entrepreneur Test, you probably have a better idea of how you compare with other entrepreneurs. However, this is not the complete picture. Your skills, education, and experience also provide you with tools that will help you should you decide to start your own business.

The first step in your assessment is to make an honest appraisal of your personal skills and education. You should list everything, especially if you are unsure what type of business in which you want to become involved. Don't list any faults or doubts here. This is a place to remember all of the things that you know how to do well (no skimping on personal praise).

After you have identified your personal skills and education, focus on your business knowledge. If you know what you are interested in, list what you know about the field or industry. If you are well versed, simply outline the general areas. If you are not sure, you should list everything. Concentrate on specific business information rather than general life experience. All experience will be useful, but we can only use the business experience when we are making a decision about what skills you may need to develop in order to run your business.

The next step is to evaluate your decision making abilities. When you own your business, you are in charge, and many decisions will have to be made based on what you think. Not all of these decisions will have to be made immediately, but some of them will have to. If your normal response is to give problem solving to someone else, then you will probably have difficulty with running a business. Reflect on your life experiences. Write down two situations where you solved a problem and the decision you made worked well. Then write down two situations where the decisions you made did not work so well. Be sure to write down what you learned from these situations.

Last, but certainly not least, identify your entrepreneurial skills. As we mentioned earlier, a lot of Successful entrepreneurs have a lot of initiative and also take risks, and they have learned from making their own mistakes. Taking a clear look at your source of motivation and your belief in yourself will help you to be prepared for the challenges that come with owning your own business. Probably the three most important factors on the road to Success are: the ability to be flexible, the willingness to change with the market as technology advances, and the ability to trust yourself. If you have all of these, you are more than halfway there.

Once you have completed your assessment, you may want to review all three areas to determine where you are at this point in time. By evaluating and understanding the whys and hows of what you have or have not accomplished up to this point in your life, you can better use this knowledge to your advantage, now and in the future. The following questions will help you do this. Remember, the more honest you can be in answering the questions, the more useful the information will be to you.

* What do you feel are your main strengths?
* What do you feel are your more serious weaknesses?
* How do you think someone else might answer the above two questions about you?
* What talents do you possess and in what situations have you been able to use them?
* How would you personally define the idea of having a job or being employed?

Now, things are already starting to make sense or you are beginning to have doubts. Either way, listen to your feelings and trust yourself. In the end, these are only tools for you to use in your evaluation process, nothing more and nothing less.

http://www.sba.gov/starting_business/startup/accessingskills.html

Do You Have What It Takes?

What does it take to be an entrepreneur? Which personality traits make for success? Let's see if you have what it takes.

FICTION: To be an entrepreneur you must be born that way.

FACT: Anyone can learn to operate like an entrepreneur.

What are the similarities of successful entrepreneurs?

* persistence
* desire for immediate feedback
* inquisitiveness
* strong drive to achieve
* high energy level
* goal oriented behavior
* independent
* demanding
* self-confident
* calculated risk taker
* creative
* innovative
* vision
* commitment
* problem solving skills
* tolerance for ambiguity
* strong integrity
* highly reliable
* personal initiative
* ability to consolidate resources
* strong management and organizational skills
* competitive
* change agent
* tolerance for failure
* desire to work hard
* luck

Many entrepreneurs also had:
A role model to influence them early on parents who were entrepreneurs Two traits necessary for successful entrepreneurs are creativity and innovation.

WHAT IS CREATIVITY?

Creativity is being able to create new ideas and ways to solve problems that provide cool opportunities.

Characteristics of Creative People

* bright
* adaptable
* high self esteem
* challenge-oriented
* idea-oriented
* inquisitive
* curious

Can you improve your creativity? YES! How?

Gather as much information as you can (read, talk with experts, etc.) "brainstorm" over time. Just think about the problem or issue until an idea comes to you.

Is the solution reasonable? If so, try it. If not, keep thinking. Did it work? If so, great. If not, begin the process over again. Don't put barriers on your mind. Put these steps to use.
Left Brain Right Brain
Analytical
Rational Intuitive
Artistic

You need both sides of your brain when being creative because they compliment each other.

WHAT IS AN INNOVATION?

* something that is invented (ex. CD's) or
* something that is created from an existing idea or product (ex. Super Wal-Mart)

Where do innovative ideas come from?

* unsatisfied customers
* demographic changes in society
* luck
* imagination
* vision
* problem-solving

Remember:

* look for new ideas
* keep it simple
* start small
* try, try, try again

http://www.sba.gov/starting_business/startup/doyouhavewhatittakes.html

Are you ready?
Is Entrepreneurship For You?

In business, there are no guarantees. There is simply no way to eliminate all the risks associated with starting a small business - but you can improve your chances of success with good planning, preparation, and insight. Start by evaluating your strengths and weaknesses as a potential owner and manager of a small business. Carefully consider each of the following questions.

Are you a self-starter? It will be entirely up to you to develop projects, organize your time, and follow through on details.

How well do you get along with different personalities? Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers, and professionals such as lawyers, accountants or consultants. Can you deal with a demanding client, an unreliable vendor, or a cranky receptionist if your business interests demand it?

How good are you at making decisions? Small business owners are required to make decisions constantly - often quickly, independently, and under pressure.

Do you have the physical and emotional stamina to run a business? Business ownership can be exciting, but it's also a lot of work. Can you face six or seven 12-­hour work days every week?

How well do you plan and organize? Research indicates that poor planning is responsible for most business failures. Good organization ­ of financials, inventory, schedules, and production ­ can help you avoid many pitfalls.

Is your drive strong enough? Running a business can wear you down emotionally. Some business owners burn out quickly from having to carry all the responsibility for the success of their business on their own shoulders. Strong motivation will help you survive slowdowns and periods of burnout.

How will the business affect your family? The first few years of business start­up can be hard on family life. It's important for family members to know what to expect and for you to be able to trust that they will support you during this time. There also may be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk in the short-term.
Why Small Businesses Fail

Success in business is never automatic. It isn't strictly based on luck - although a little never hurts. It depends primarily on the owner's foresight and organization. Even then, of course, there are no guarantees.

In his book Small Business Management, Michael Ames gives the following reasons for small business failure:

1:Lack of experience
2:Insufficient capital (money)
3:Poor location
4:Poor inventory management
5:Over-investment in fixed assets
6:Poor credit arrangements
7:Personal use of business funds
8:Unexpected growth
Gustav Berle adds two more reasons in The Do It Yourself Business Book:
9:Competition
10:Low sales

More Reasons Why Small Businesses Fail

These reasons aren't meant to scare you, but to prepare you for the rocky path ahead. Underestimating the difficulty of starting a business is one of the biggest obstacles entrepreneurs face. However, success can be yours if you are patient, willing to work hard, and take all the necessary steps.

On the Upside

It's true that there are many reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks.

* You will be your own boss.
* Hard work and long hours directly benefit you, rather than increasing profits for someone else.
* Earning and growth potential are far greater.
* A new venture is as exciting as it is risky.
* Running a business provides endless challenge and opportunities for learning.

For more information on assessing your readiness download the SBA's:

Do You Have What it Takes?
Accessing Your Skills, Education, and Experience
Know Yourself

http://www.sba.gov/starting_business/startup/areyouready.html

ASK YOURSELF

Is Entrepreneurship For You?

There is no way to eliminate all the risks associated with starting a small business. However, you can improve your chances of success with good planning and preparation. A good starting place is to evaluate your strengths and weaknesses as the owner and manager of a small business. Carefully consider each of the following questions.

Are you a self­starter? It will be up to you - not someone else telling you ­ to develop projects, organize your time and follow through on details.

How well do you get along with different personalities? Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers and professionals such as lawyers, accountants or consultants. Can you deal with a demanding client, an unreliable vendor or cranky staff person in the best interest of your business?

How good are you at making decisions? Small business owners are required to make decisions constantly, often quickly, under pressure, and independently.

Do you have the physical and emotional stamina to run a business? Business ownership can be challenging, fun and exciting. But it's also a lot of work. Can you face 12­hour work days six or seven days a week?

How well do you plan and organize? Research indicates that many business failures could have been avoided through better planning. Good organization ­ of financials, inventory, schedules, production ­ can help avoid many pitfalls.

Is your drive strong enough to maintain your motivation? Running a business can wear you down. Some business owners feel burned out by having to carry all the responsibility on their shoulders. Strong motivation can make the business succeed and will help you survive slowdowns as well as periods of burnout.

How will the business affect your family? The first few years of business start­up can be hard on family life. The strain of an unsupportive spouse may be hard to balance against the demands of starting a business. There also may be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk.
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On The Upside

It's true, there are a lot of reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks.
You get to be your own boss.
Hard work and long hours directly benefit you, rather than increasing profits for someone.
Earning and growth potential are far less limited.
A new venture is exciting.
Running a business will provide endless variety, challenge and opportunities to learn.