Are you ready to be an entrepreneur?

Buying or starting your own business can sound like a great idea, but how do you know if you have what it takes to be a successful entrepreneur?

My experience as a business owner and as a franchise consultant, where I have interacted with hundreds of entrepreneurs and aspiring business owners, has revealed to me some key elements that are essential for predicting success. Here they are...

1. Capital - This should be obvious. You need money to invest in a new business and to ensure that you have enough working capital to take care of you and your family while you are growing your business. While you are doing your research, talk with financial experts who specialize in funding for franchise ownership (which is not typically your local bank). Funding specialists can help you accurately assess your situation and present some options for you to consider such as an SBA loan, utilizing your existing IRA to create your own 401(k) or Business Rollover (ROBS), using unsecured lines of credit or tapping into the equity in your home, to name a few. Having a good credit score, typically 680 or higher, is often needed when applying for a loan. The key is to talk to the right financial experts while you are researching your startup business. A franchise consultant can connect you with a funding specialist familiar with franchising. Doing so will help you to best understand what you are capable of from an investment standpoint.
2. Skills - While there are many business traits that can be important to have to successfully run a startup business, I believe the two most important are leadership and relationship building skills. These skills are essential in every business, whether you are working with customers, employees, vendors, public relations, etc..., and this is certainly the case for a new business owner. If you are not comfortable being out front, then recognize that and hire someone who is.
3. Attitude - Are you a positive, solutions focused person? Are you coachable, willing to learn? Are you willing to follow a process (especially if you are buying a franchise)? Do you like helping others? This last question is important if you join a franchise system because you will be leaning on other franchise owners for support in the early stages of your growth, and then you will need to return the favor as you gain experience. Comfortably answering "yes" to these questions can help predict not only if owning a business is right for you, but also how quickly you may be able to achieve success.
4. Risk - Investing in a business comes with risk, plain and simple. Understand that you could lose your investment, which is a good reason to consider joining a proven franchise system to greatly improve your odds of success. Get comfortable with how much you are investing. Be honest with yourself and decide if you are truly someone who is willing and capable of taking the risk.

Becoming an entrepreneur is a personal journey. For me, I had always wanted to own my own business. I worked hard and saved money. I knew I had the requisite skills and the right attitude. Most importantly, I knew I would never be satisfied with my professional life if I did not give entrepreneurship a try.

Mike Grecky is a leading franchise consultant who works with over 700 franchise and non-franchise brands, assisting and educating his clients to help them find the right entrepreneurial opportunity. Mike can be reached at 248.918.3587 (phone / text) or at [email protected].