What does it take to be an entrepreneur
What does it take to be an entrepreneur?
With the UK economy in full re-build, it will be the entrepreneurs, who create jobs, through innovation and by putting their ideas into action. Being an entrepreneur or business owner is not an easy thing to do and with so many new business startups perhaps more than ever before, you have to ask yourself one question:-
Am I ready?
Being an entrepreneur requires a passion, determination and courage that few people actually realise. You will experience the highest of highs coupled with the lowest of lows. At times, your mind and resolve will be tested to the limits and only when you face real adversity will you know whether you truly are entrepreneurial.
Entrepreneurs are natural leaders that inspire and innovate through ideas and creation. An entrepreneur must accept and realise that he is not skilled in every aspect of business and day-to-day operations. The skill is knowing when and where to seek help and how to use it and in what quantities. Always stand up and be counted even when things go wrong. When your ideas work, ride them, when they do not, evaluate and reapply.
If you are starting a business then you must test-drive your idea. Do not keep it to yourself, as you are not re-inventing the wheel. Put your idea out there, as that is the only way to know if it is going to work. Use your friends and family to test drive your idea but also use people who do not know you, as they will answer honestly without emotion. Above all, listen to them, as they could be your future customers.
Do you have adequate finance to get your business where you need it to be? If you do not then you have two choices: – either wait until you have secured enough money to fund the business or start it knowing that you will require investment at a later stage. Some investors prefer to see something tangible, live and working. Be careful and choose wisely.
During my career, I have employed thousands of staff. I have learned only recently at a great cost that you must employ the best person that you can and if that means you have some kind of profit share then do it. Getting employment wrong, can cost you time, money, grow and can have a negative impact on your business. When I met and interviewed David recently he reinforced that to me.
Your business will change as soon as you create it. A business pan rarely goes according to plan. Keeping an eye on costs is key and reviewing your monthly costs is essential if you are to survive.
Always look at your three month cost base and if you are not making money then ensure that you either decrease costs, increase sales or your GP to stay above water. Always remember that if your business makes 10% net profit after all expenses then for every £10,000 in turnover you achieve you earn £1000. Every £1000 that you spend requires you to turnover another £10,000 just to make it back.
Time and resources
Entrepreneurs work long hours and often take home less money than they were paid by the jobs they enjoyed prior to starting in business. I would advise that you have a second income while you build your business. The less you draw from the business, the stronger it will be in the long term.
Your resources are everything and the contacts that you make will help you grow your business. Business networking is an essential tool for any business owner and there are many business-networking opportunities for you to explore.
Business networking is a vital tool for your business. Get out and join as many business networks as you can. Entrepreneur networking will help you make new contacts that you can later use to your advantage. Raw Business online offers free online business networking. Every registered member also receives a copy of Raw Business Magazine each month. Join as many networks as you can and make as many new contacts as you can.