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QUESTIONS TO ASK YOURSELF BEFORE YOU START YOUR
BUSINESS
WHY YOU SHOULD START A BUSINESS
Flexibility Independence Freedom
Personal fulfillment Passion Financial
independence
You Choose the People You Work With
Recognition Create jobs
QUESTIONS TO ASK YOURSELF BEFORE YOU START A BUSINESS?
1. CAN YOU WORK ALONE AND TAKE RESPONSIBILITY?
2. DO YOU WANT A BUSINESS OR DO YOU JUST WANT MONEY?
3. CAN YOU HANDLE STRESS?
4. CAN YOU HANDLE REJECTION?
QUESTIONS TO ASK YOURSELF BEFORE YOU START A BUSINESS?
5. ARE YOU WILLING TO LEARN?
6. ARE YOU A LEADER OR A GOOD MANAGER?
7. WHAT ARE YOUR STRENGTHS?
8. ARE YOU PREPARED TO TAKE A RISK?
CAN YOU TAKE RESPONSIBILITY?
• Working for someone else means that we have guidance, structure, and someone directing our activities.
• We don’t bear the financial risk or assume responsibility for how the business is managed.
• Running our business requires us to manage all those activities and ensure that they are being carried out effectively and efficiently. We bear the financial risk and are responsible for how the business is managed. It requires hard work and commitment.
No Manager
• Capable of motivatingourselves
• Manage our time effectively
• Be productive
Must be
DO YOU WANT A BUSINESS OR JUST MONEY?
There is a tendency to view business
ventures as a means to making large amounts of money, and while
this can be the case, it rarely
happens quickly.
Often times it requires years and years of effort and hard work. Many
startups operate for years without even
break even, let alone making a
profit.
By asking yourself what it is you really
want from your business can really help prepare you
for any obstacles or tough times that you may face in
making your startup work.
DO YOU WANT A BUSINESS OR JUST MONEY?
Most entrepreneurs operate on fairly tight budgets and if money is your main motivator,
this can be a disheartening time.
While money can certainly be a valid
motive and the main motive for a lot of
business owners who desire financial
independence, it is essential to
accompany it with another motive or
reason.
By pursuing something that has meaning and value to you, you will
find it easier to get through the difficult times. Otherwise, it
may be too tempting to give up when the
going gets tough
CAN YOU HANDLE STRESS?
Factors contributing to stress:There is just simply not
enough in hours in the day for an entrepreneur. There will be many days where
you will have to put in long hours, not to mention
periods of high pressure to meet deadlines and land
key clients.
Obtaining finance and making decisions while facing uncertainties are just some of the ongoing
situations that can contribute to a business
owner’s stress levels.
A business will inevitably experience ups and downs
throughout its life cycle, and more often than not, many face emotional and financial turmoil at some
point.
CAN YOU HANDLE STRESS?
Factors contributing to stress:
When running your own business, you are likely to lose
sleep and experience higher levels of stress than
usual.
Running a business may, unfortunately,
require you to miss out on key family time and events.
It is very important to consider these
things and ask yourself is this
lifestyle for you?
Exercise Meditation Breaks Balancing family life
DEALING WITH STRESS
CAN YOU HANDLE REJECTION?
Rejection is something that every business owner will experience
again and again throughout their journey. It is inevitable.
Whether you’re looking for finance from a lender or seeking potential investors, rejection will
be part of that journey.
Others will not always see your idea as clearly and confidently as
you do.
The most important thing is not to let rejection affect you and try to
learn something from it.
Find out what they didn’t like and identify those areas you may need
to improve on.
Feedback is crucial to stepping forward. Use rejection as a means
to motivate yourself to push forward and improve.
ARE YOU WILLING TO LEARN?
• THE KEY TO SUCCESS OFTEN CORRELATES WITH YOUR ABILITY TO CONTINUALLY INVEST IN YOURSELF AND YOUR ABILITIES.
• KNOWLEDGE IS A FUNDAMENTAL ELEMENT OF A STARTUP’S SUCCESS. IT IS IMPORTANT TO KEEP UP TO DATE WITH INDUSTRY TRENDS AND CHANGES BY ATTENDING COURSES, TRADE SHOWS, NETWORKING, ATTENDING SEMINARS,
READING ETC.
• CONTINUAL LEARNING AND SELF-IMPROVEMENT IS A FUNDAMENTAL ELEMENT OF THE ENTREPRENEURIAL JOURNEY.
ARE YOU A LEADER OR A GOOD MANAGER?
• THERE ARE PEOPLE WHO ARE GREAT LEADERS AND PEOPLE WHO ARE GREAT MANAGERS.
• IT’S NOT ENOUGH JUST TO BE A GOOD MANAGER. GOOD LEADERS HAVE BIG IDEAS COMBINED WITH THE ABILITY TO COMMUNICATE THOSE IDEAS EFFECTIVELY AND
CONVINCINGLY TO OTHERS BOTH INSIDE AND OUTSIDE THE BUSINESS.
• THROUGH THEIR ENTHUSIASM AND PASSION, THEY HAVE THE ABILITY TO INSPIRE AND ENCOURAGE OTHERS TO FOLLOW THEM.
• LEADERSHIP IS AN ESSENTIAL ELEMENT OF A SUCCESSFUL STARTUP. ENTREPRENEURS NEED TO BE ABLE TO LEAD, INSPIRE AND MOTIVATE THOSE AROUND THEM.
Warren Bennis (in his book, “On Becoming a Leader”) composed a list of the differences:
GOOD MANAGER GOOD LEADERManagers administer Leaders innovate
Managers imitate Leaders originate
Managers rely on control Leaders inspire trust
Managers have a short-range view Leaders have a long-range perspective
Managers focus on systems and structure Leaders focus on people
Managers accept the status quo Leader challenge status quo
Managers have their eye always on the bottom line Leader’s eye is on the horizon.
Managers do things right Leaders do the right thing
WHAT ARE YOUR STRENGTHS?
“KNOW YOUR STRENGTHS. KNOW YOUR WEAKNESSES. DON’T BE AFRAID TO TRY THINGS AND FAIL IF THOSE FAILURES WILL
TEACH YOU WHAT YOUR STRENGTHS AND WEAKNESSES ARE. AND WHEN YOU TRY AGAIN, BUILD YOUR BUSINESS AROUND
THE STRENGTHS! THE MORE YOU “KNOW THYSELF,” THE CLOSER YOU’LL BE TO SUCCESS.”
– KEVIN HARRINGTON
(INVENTOR OF THE INFOMERCIAL, AS SEEN ON TV PIONEER, AND SHARK TANK)
ARE YOU PREPARED TO TAKE RISKS?
• STARTING YOUR OWN BUSINESS WILL INVOLVE SOME RISKS.
• THESE MAY INCLUDE:
LOSING YOUR
SAVINGS
GIVING UP A REGULAR PAYCHECK
DEPENDENT ON A
REGULAR CASHFLOW
ENTRUSTING KEY
EMPLOYEES
ADVICE FROM ENTREPRENEURS
DONNA NODSON
STARTED BUSINESSES, WORKED WITH START-UPS - CONSULTING, BUSINESS STRATEGY20 YEARS OF EXPERIENCE SPANNING EUROPE AND NORTH AMERICA, BA, MBA
“Entrepreneurs should know how
to read, write and manage a business plan”
“You don’t have to be an expert at this, and you may
be going through the process for the first time
while starting your business. This is a critical skill that will serve you well as you work to navigate the constantly
shifting landscape of business.”
“Work through the business planfilling out the information you
know. Identify the information you still need and come up with a
plan for obtaining it. Your business plan will change, probably quite a bit. Don't get frustrated; this is part of the process. You might make
one decision based on the information you have available at that moment. A week later, you
find out different information and need to re-evaluate whether your
initial decision still makes sense. This is ok.”
DONNA NODSON
STARTED BUSINESSES, WORKED WITH START-UPS - CONSULTING, BUSINESS STRATEGY20 YEARS OF EXPERIENCE SPANNING EUROPE AND NORTH AMERICA, BA, MBA
“Make sure every person who is part of
your company knows your
business plan.”
“Everyone should be able to read the
company business plan and understand where they fit in the strategy. How does
their job contribute to the company goals?”
“It gives your management better visibility. It’s not just
about employees interpreting this for their own work… it’s also about managers (at all levels!) being able to better structure their departments
and the employee requirements to align with
company goals.”
DONNA NODSON
STARTED BUSINESSES, WORKED WITH START-UPS - CONSULTING, BUSINESS STRATEGY20 YEARS OF EXPERIENCE SPANNING EUROPE AND NORTH AMERICA, BA, MBA
“Think that the business plan has far too much
‘confidential’ information?
You don’t need to share a version that includes line-item visibility on things like salary or
exactly which clients owe how much money. Give
broad information.”
“Salary costs need to be x% of the overall revenue in order to
achieve [goal]; today the company is at y%.
This makes it much easier for people to
understand and manage salary
increases and hiring constraints.”
“The company has $/£ amount of funds outstanding
based on past-due client payments; this falls below the
company’s requirement of $/£.Cash flow relies upon client
invoices being paid on time. Lack of cash will impact the company’s ability to make x
other purchases. Then employees understand
why a purchase might be delayed from one month to
the next.”
CAREY GREEN
BUILT HIS BUSINESS TO OVER 6 FIGURES IN UNDER 3 YEARS, GROWING MORE DAILY
“Strengthen your determination muscles. You won’t succeed if you’re not willing to get back up every
time you fall. And I mean EVERY time. There will be lots of mistakes, missteps,
and difficulties on the road to success. If you can’t
overcome the discouragement to keep
going, you shouldn’t start in the first place.”
“Maybe take up something that requires a lot of you -
running, martial arts, fitness of some kind - to strengthen your mental game ahead
of time. I’m convinced that those kinds of things will help
you when it comes to the mental discipline needed to
be an entrepreneur.”
HAN OOI
STARTUP FOUNDER CREATING IOT PLATFORM FOR OUTDOOR SPORTS AND VR/AR INDUSTRY
“Deep Network of Friends/Associates with complementary skills -
Launching a startup is tough and scary and there are
many things you don’t know that can hurt you. So
volunteer your time to build relationship with other
people who may have parts of the knowledge that you
need. Joining a tech startup incubator is also another way
to meet such people.”
“Develop good money management skills in your
personal life and startup life - burn rate is one other those factors that can impact your success or
failure. If you fail to manage your cash flow well, you will die on the
vine. Being competent at managing finances is also a skill investors like to look
at when determining whether to fund you.”
“Courage and Passion - I was reading in the Hypomanic Edge
on how some societies have low rates of entrepreneurship
even though those societies are well off financially….some cultures and societies lack courage even though their
people are technically competent So the final
ingredient is this intangible.
- Doing a startup is like “Jumping off a cliff while trying
to learn how to fly.” ”
GERICKE POTGIETER
FAILED AND SUCCEEDED AT NUMEROUS BUSINESSES - CO-FOUNDER OF ARTIFEXKNOWLEDGE ENGINEERING – PUBLISHED WRITER AT INC
“Bread-and-butter money first, then you
can play.”
“My mentor was a very wealthy man, yet he still
gave weekly math lessons to high school kids with his
wife. I thought it was funny, why would a man driving
the latest Porche give math lessons?”
“That was to be one of my best business lessons.
He did it because it paid the bills and had nearly zero risk.
There would always be kids who struggle with math.
All of his other investments and businesses could fail but the weekly math lessons will
carry him through.”
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