Motivation

Being aware of your own motivations for becoming an entrepreneur and starting a business is critical to your journey. It is what drives you when the going gets tough and will often determine your priorities and the decisions you make both for yourself and your business.

Common types of motivation include:

• desire for control and independence
• more freedom and time
• increasing your earning potential
• not able to get a job
• doing something you are interested in or passionate about

Mindset & Attitude

Adopting the right mindset will help you greatly with your transition into entrepreneurship. Many entrepreneurs have succeeded because they have the right attitude towards the challenges and problems they face.

• I will have to deal with challenges on a daily basis
• I will not be afraid to make mistakes
• Failure is just part of the process – what can I learn from this?
• I will be adaptable and flexible because change is the only constant
• I will be realistic, especially when it comes to my financials
• I will be prepared to get out of my comfort zone and do what does not come naturally, like networking, giving presentations in front of hundreds of strangers, or cold-calling

Do you believe that these are true? If not, you might want to start thinking about incorporating these mantras into your belief system.

Personal Characteristics

Starting, running and sustaining a successful business will require a fair amount of blood, sweat and tears. Do you have what it takes? Are you aware of your strengths and weaknesses?

There is no such thing as the “perfect” entrepreneurial profile, but there are some characteristics that many successful entrepreneurs have in common, such as:

Skillset

In addition to having competent technical skills in your chosen trade, it will help greatly if you have:

• leadership skills
• good people skills
• financial knowledge
• sales and marketing knowledge and experience

Support

Starting a business will be one of the most stressful things you will do in your life. Do you have support from your spouse, family and friends?

They need to understand the hard work you need, and support you when you have to work long hours or miss that family event. Communicate needs and expectations regularly.

Financial

Are you financially prepared? Taking care of the financial aspects of both your personal and professional life will be the key to the success or failure of your business venture.

• Do you have at least 6 - 12 months of savings to tide you till you are able to draw a salary or turn a profit?
• Do you have heavy financial commitments like a mortgage, car loans, children’s education needs and medical expenses? If so, do you have a sound financial plan in place to handle these?
• Are you prepared to cut down on your expenses and be more frugal?
• Is your personal credit history in shape? This will be important if you need to access credit facilities or borrow money.

Common Mistakes

Beware of common mistakes:

• unrealistic business and revenue plan
• spending too much on set-up cost and inventory
• not controlling cash-flow
• under-pricing or over-pricing
• not seeking advice from experts like lawyers, accountants
• not understanding your legal and tax obligations

Use our Self-Assessment Checklist to assess and evaluate your potential as an entrepreneur. In the process, you might just get to know yourself better, and better prepare yourself for the journey of entrepreneurship.