What are my abilities and resources?
Starting a business is a risky endeavor, therefore you should familiarize yourself with the numerous hazards as soon as feasible. This will assist you in determining whether you are willing and capable of taking those risks. It will also help you to apply strategies that will reduce the risk.
- Do you have the financial means, and can you afford to take a chance with them? If you own a home, for example, you could take out a secured loan based on the worth of your home. What will you do if your business fails and you have to sell your home?
- Your new business will need you to have particular experience and technical skills and have you thought about how to get them if you’re lacking in some areas? The fact that you’ve come to SmallBusinessHelp in the first place is already a good start.
- Do you have adequate market knowledge to understand what customers want, where to locate them, and how to stay ahead of the competition?
- Do you have the personal tenacity and discipline to see through hard times when cash will be short and demands will be heavy (from customers, bankers, staff and family)?
- Many of those who successfully start their own business have the backing of their family – even if this is only in the form of moral support. You will be under pressure, working long hours. Your family must be prepared for the impact this can have on family life. Also ensure that your family can accommodate the risks that self-employment can bring, especially in terms of lower income in the initial stages and maybe even the implications of the business failing.
While the production aspects of your business will require specific skills, abilities and experience, there are broader demands that are as important. These include the ability to:
- Negotiate with suppliers;
- Mediate between staff;
- Be sociable with customers;
- Be convincing with prospects;
- Think clearly under pressure;
- Take criticism without being offended or defensive; and
- Use your time effectively.
In the end, there are no easy answers to such questions, but you must be honest with yourself and try to be as objective as possible. Discuss these points with friends, colleagues and relations. Think about how you have dealt with past challenges, as an indication of your response to difficult new situations.
What are my skills and qualifications?
Many of the skills and competencies we mention below can be taught. You should make sure that throughout your business life you continually learn, whether through formal qualifications or informally through your own research or observing other successful businesses.
Technical skills and certificates that are relevant to your business activity are certainly crucial. To keep consumers satisfied, you must be able to offer professional-level work. Lenders will be more confident in you if you have solid qualifications, even if you are applying for startup capital. Certain types of enterprises, such as those in the design or artistic professions, require a certain level of creativity.
Business skills. If you don’t already have business abilities, you’ll need to learn them. Marketing, strategic planning, accounts, people management, and other business and management principles must all be understood. Before you begin, receive some fundamental business administration training. If this isn’t possible (many individuals don’t have the time or money to do so at first), read as much as possible.
Leadership abilities: If you’re satisfied for the operation to be small in the long run, you may focus on the daily “nuts and bolts” without having to worry about leading, managing, or encouraging others. In fact, many people prefer self-employment since it allows them to work at their own pace. However, if you expect your business to grow, you will inevitably have to employ people, and the ability to lead and manage others will be critical. Ask yourself: Are you good with people? Do you have management experience? Do you enjoy working in a managerial role?
Selling skills: Selling is a necessary component of any businesses. It is critical to be able to persuade individuals to support you as well as to be able to win over potential customers. Basic selling methods can be learned, but being outgoing and expressive are also vital.
