Do you dream of being your own boss? Have you often been told you have leadership potential (AKA you like to tell people what to do)? Do you have the determination it takes to own a business?
If you have the drive and determination it will take to run your own enterprise, then perhaps the life of an entrepreneur is for you. While entrepreneurs are now most commonly associated leaders of tech startups, you need to have an entrepreneurial spirit to successfully launch your own business.
If you’re considering starting your own business, it simply cannot be done without knowing the basics of business administration and accounting. You cannot make money without knowing how to invoice clients, abiding by regulatory guidelines, and organizing yourself and the work you do professionally.
Entrepreneur and ‘gig economy’ are the latest buzzwords in business and it is easy to dismiss them as irrelevant to the average person’s career goals. However, there are opportunities available to people that have a good idea and the motivation to succeed no matter the burden it places on your personal time.
Those wishing to work for themselves, or starting a business from scratch, need to know the basics of all aspects of business management, administration, and accounts. It is unlikely that in the early days you will be able to hire others to undertake those tasks for you, so a solid foundation in everyday business processes will provide a way to keep costs low while building your dream career.
What attributes are essential for a good entrepreneur?
If you want to be an entrepreneur, there are certain personal attributes that are vital to your success. By developing these skills, you are well on your way to having what it takes to own a business.
Perseverance is high on the list of soft skills required to become an entrepreneur. If you choose to run your own small business, all responsibility will be on your shoulders. You need to be able to pick yourself up and keep working when things go wrong. You have to be willing to work long hours, especially in the first two years, and you can forget about any semblance of work/life balance. The reward for your perseverance will be a successful business that you have built, all by yourself.
Getting your business off the ground is going to take a lot of hard work. You can expect to work late nights and early mornings completing paperwork outside of your regular business hours. Even if you decide to take on a retail franchise, you’ll find lots of tasks that will be required your attention out of hours. You’ll need drive and motivation to keep up momentum.
When you open your own business there are always plenty of problems to solve, and most of the time you will be the only person you can rely on to do it. To own your own business you must be able to put your critical thinking into action to resolve problems, come up with creative solutions and negotiate with suppliers and clients.
Above all, to run a business you have to be organized. You will need to have systems in place for data storage, accounts, staff procedures, risk management and other business processes. With the multiple responsibilities you will need to attend to, it is essential that you can manage your time and your tasks effectively to ensure you get everything done.
What type of business owner could I be?
Starting a business can require significant financial outlay and a solid business plan, but there are also plenty of options if finances or ideas are short. Most freelancing opportunities have minimal running costs, and if you’ve got a small amount of money you can purchase stock as you go for an online store. If you’ve got the money but no great idea, purchasing a franchise could be perfect for you.
Small Business Owner
If you have a great idea and some financial backing, you could always establish or purchase your own business. Regardless of the industry you choose, you should ensure you’ve done your research and that the business is viable. You can opt for an online store or business to keep overheads low, or you can invest in ‘bricks and mortar’ shop fronts. Obviously, you can open a business in pretty much any industry you have experience in, with examples including restaurants, bars, retail shop fronts, consultancy firms or online stores.
A freelancer is a sole trader operation who completes contract work, usually based online. One benefit of freelancing is the low cost of overheads, especially because you can work from your home. If you take on virtual assistant work that includes data entry, bookkeeping, and other administrative tasks, you will only need to ensure you have good internet, as well as the right computer hardware and software. To begin with sites like Freelancer, Fiverr, Airtasker and Upwork can provide great experience and a way to find work, but in the long run, you will want to develop your own network of clients so you can give these bidding sites the flick.
If you want to own a business, but don’t have an idea or want to reduce your risks, then you may want to explore the option of purchasing a franchise. Buying a franchise means you get an established brand and business model with proven returns. Franchises often also provide extensive training and mentorship to help you succeed. You’re also sure to find a franchise to suit your interests. From food to fashion, dog grooming to yard maintenance, just make sure you find a business that you can be passionate about.
Next week we’ll look closer at the technical skills you’ll need to get started. For more information on how our business and accounting program can help you become your own boss, fill out the contact form or download our e-book here.