Are you starting your own small business? Don’t forget your life raft.
Mar
30
Written by:
3/30/2011 11:21 AM
After reading Jamie Herzlich’s Newsday article on starting your own business, I decided to enter the discussion myself. The Small Business Administration says that approximately 24% of small businesses fail in the first five years. I strongly agree with Jamie and when asked by potential entrepreneurs I make sure to stress the level of risk they are prepared to face, as well as the long hours needed not just to get the business going but for the business to grow.
Most entrepreneurs grossly underestimate the amount of work that goes into starting and running their own organization. When I speak to a colleague or friend who is looking to start a small business, I make sure to ask them the following questions:
- Have you spoken to your family about their level of support and the sacrifices that may need to be made?
- Are you financially ready for this? Have you saved enough money to cover your initial start up costs as well as the first six months with potentially no revenue?
- Do you possess the confidence to represent your brand in the marketplace, at major events and in front of large crowds?
- Are you prepared for the schedule needed to make sure you network enough to get your brand name out there?
- Are you confident in your decision making capabilities in difficult situations?
Make sure you take advantage of all the resources that Jamie mentioned in her article, such as the Service Corps of Retired Executives and the Small Business Administration's Small Business Readiness Assessment Tool. Click here to go directly to the tool.