Six Questions to Ask Yourself Before Starting a Business

Do you have what it takes to become a successful entrepreneur? Many people jump the cubicle (leave corporate JOBS in pursuit of being their own boss) and may have the motivation and desire. But, do they have all the other skills, education, focus and money to make the jump? Here are six simple things to consider.

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1) Do you believe you have what it takes?

We don't mean personal characteristics -- or not just personal characteristics, anyway. Do you believe you have all the skills, energy, money, people, and knowledge to start a business? Founders who carefully identify and evaluate their resources in pursuit of a well-defined goal display "entrepreneurial self-efficacy," a trait many academics believe to be the best predictor of success. "It's situationally specific confidence -- 'I strongly believe that I have all the resources I need, and here is what they are,' " says J. Robert Baum, an associate professor of entrepreneurship at the University of Maryland. "Overconfidence, by contrast, is partially caused by the absence of self-efficacy. 'Let's get going. I just know I can do this.' "

2) Are you able to let other people down?

A founder may set out in a rowboat, but pretty soon, he is piloting a cabin cruiser with investors and employees on board and their families huddled belowdecks. Risking your own fortunes is easy compared with risking the fortunes of those who believe in you. "These people may not completely understand the business," says Baum. "They may not understand the level of risk. But they think they'll be OK because you are so smart. Breaking their dreams is very painful."

A business owner walked out in the middle of the road and stood there, half hoping a car would end his misery. He was thinking of all the people who had risked their livelihoods for him. He thought, I have sold this dream to them, and now I am going to let them down.

3) How do you handle setbacks?

When you are smiling, the whole company smiles with you. In the book Resonant Leadership: Richard Boyatzis and Annie McKee explain that emotions are contagious: Morale rises and falls with the mood of the leader. Consequently, people who succumb to black moods or depression can fatally infect their own companies.

Because some people have an inflated idea of their resilience, perform a reference check on yourself -- ask people who know you well how you handle adversity. See if you are the type of person who needs to retreat for a period to recharge, which is not possible in most business. Are you the type of person that if you have a very high sense of responsibility and you take setbacks hard, you have to know that and be honest with yourself about being in business for yourself.

4) Are you really an inventor, rather than an entrepreneur?

Raising a child is generally more challenging than creating a child, and the same is true of new products. Some people mistake the act of invention for the tough part. Too many times, these inventor types spend an inordinate amount of time on the patent and making the prototype just so, then they think once they've done that, the world will beat a path to their doorstep.

It's also hard for some people to entrust their brainchildren to designers, engineers, and marketers. Entrepreneurs like Sir James Dyson, the inventor of the bagless vacuum cleaner who surrounded himself with Britain's best engineers, and "Caractacus Potts types" - a reference to the eccentric soloist who creates the namesake flying car in Chitty Chitty Bang Bang. Product development is a team sport. Inventors don't get that. Entrepreneurs do.

5) Can you accept that your company may outgrow you?

Some entrepreneurs love to brag that they don't need an exit strategy, because they are not going anywhere. But at some point, your business may need you less than you need it. That's particularly true at fast-growth companies, at which entrepreneurs may not have enough time to develop the necessary leadership and business skills.

Sometimes founders bring in presidents or senior executives from the outside, only to sabotage them. They do it by not giving them the necessary information. They do this by not stepping back and by involving themselves with managers in a way that is inappropriate in the chain of command. They can be disruptive during meetings.

6) When you look in the mirror, does an entrepreneur look back?

If so, and if that's the reason you are starting a company, beware. Many traits-persistence, creativity, and risk tolerance among them, are commonly ascribed to entrepreneurs. But having those traits doesn't much improve the odds that you will succeed.

Research into entrepreneurs' personal traits with things like persistence and need for achievement explain only about 5 percent to 10 percent of the difference between people who start companies and those who don't. Entrepreneurs are less important than external predictors like the spirit of the times, the economy, and changes within an industry.

Trying to predict success in entrepreneurship based on personal traits is a fool's game.

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Steve Feld, MBA, Certified Business Coach, Author, provides training and business performance coaching to business owners, professionals and executives. Steve also speaks to organizations, conducts workshops and training. Focusing on the lead generation and revenue creation to get growth results for the business.

Contact Biz Coach Steve today to see how he can assist you get the results you want in your business, [email protected], or www.bizcoachsteve.com. He is in the business of growing businesses. Need a speaker, contact Steve today. #bizcoachstevef #entrepreneur #smallbusiness #business #smallbiz #coaching #businessowner #businesscoach #leadership #marketing #speaking #keynotespeaker #meetingprofs #eventprofs #meetingstoday