5 questions to ask yourself before starting a small business (Part-II)

Posted by Chetan Bharadwaj | Posted in Management | Posted on 10-10-2009

Continuing from my previous post

3. Do You Have Strong Opinions?

For most entrepreneurial ventures, there has never been a structure. Lot of decisions has to be made on a fly with no playbook and any sort of guidance. No management books yet can so specifically mention the step to make a business successful and therefore, in a situation as this, an entrepreneur needs to have his own strong opinion over things to make the best suited decision. Over and above, it is thereby wise to find a business in an industry where one is very familiar with or else it will be a tough task to survive the competition with the little knowledge about the field. He/ she should always strive to observe more about the prevailing behavior of the industry they are dealing in.

Instead of being the owner of your business, you continuously receive advice and inputs from others. While some of this advice will be valuable, others may contradict your idea. So, it is very necessary that before you get into any venture you have all the possible knowledge about the subject and developed a strong opinion helping you to confidently state your feelings on the matter.

4. Do you like all aspect of business and ready to take a financial risk?

A startup business owner is entirely responsible for keeping everything organized and running. Though the owner may wish to exploit the services of the professional for different departmental jobs, he/ she has to himself/ herself perform all the different roles (from an accountant to salesperson to book-keeper and etc) at the initial stage due to limited financial resource. It becomes very important that the founder of the business is equally proficient in all the aspects and loves to do them as well. He is often expected to handle everything from hiring employees to building products to writing marketing materials to billing customers. Some new entrepreneurs become annoyed at the fact that they are spending maximum of their time on administration when they had rather be focused on the part of the job he/ she enjoy. Moreover, it is essential that he/ she is ready to take financial risk – he should be prepared to accept the concept of bankruptcy is case of lose of his capital. An idol entrepreneur is known for being a kind of risk-blind because he/ she doesn’t think he could ever fail. Risk factor is a part and parcel of the business process. The relationship between the risk and profit is directly proportional; hence owner of business should be ready to accept coming challenges and financial risk.

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