Dollar store finance
Saturday March 13, 2010
Entrepreneurship offers many rewards, but you must be prepared and committed. Take whatever time is necessary to determine if you are ready; this will be time well spent.
Dollar Store
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 workdays 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.
Starting a small business is always risky, 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.
In his book Small Business Management, Michael Ames gives the following reasons
for small business failure:
Gustav Berle adds two more reasons in The Do It Yourself Business Book:
More Reasons Why Small Businesses Fail
These figures 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.