What to think about when you’re thinking about starting a business.

Entrepreneurship is all about seizing opportunities. It’s about identifying a problem or a need and offering a solution. Entrepreneurship requires innovation and a challenging mindset. However, behind every successful business is someone who has the courage and determination to do what needs to be done to move from a bright idea to a plan to reality. It takes energy and vision to get the right solution to the right market, at the right price. It also demands extraordinary resilience. 

Consider the following and assess your readiness to be an entrepreneur:

Your personality

1 Your appetite for risk

Entrepreneurship and a high tolerance for risk go hand in hand. To offer something new or better requires innovation and trying the unknown, which in turn speaks to risk: risk of failure, risk of financial loss, risk of liability and even risk of ridicule.

• Rate yourself from 1 to 10, where 1 is 'You can never be too careful' and 10 is 'Life’s a gamble!'
• Between 1 and 10, how would your friends rate you?

2 Your self-discipline

There is no one else who can, or will, do it. Do you have the will and stamina to work long hours, with little reward and to carry on when most people are giving up? Are you prepared to make the personal, financial and family sacrifices required? Do you habitually set goals and achieve them?

• Rate yourself 1 to 10, where 1 is 'Let me snooze another five minutes' and 10 is 'I’ve run 10 km before the alarm goes off!'
• Between 1 and 10, how would your friends rate you?

3 Your creativity

A ‘why not?’ mindset and a problem-solving approach to life are key entrepreneurial characteristics. Are you constantly reading, learning and questioning? Do you look for different ways of doing things and seek inspiration from other industries and countries?

• Rate yourself 1 to 10, where 1 is 'Tried and tested is good enough' and 10 is 'Google search is my best friend'
• Between 1 and 10, how would your friends rate you?

4 Your enthusiasm

Do you see the doughnut or the hole in the middle? It’s unsustainable and even unwise to be perpetually positive, despite all information to the contrary, but an attitude of optimism, abundance and gratitude is essential to withstand hardships and self-doubt. If you do not believe in your business, it’s unlikely that you will persuade others. It’s important to celebrate the smallest of victories and to surround yourself with can-do people.

• Rate yourself 1 to 10, where 1 is 'The doughnut holes are bigger than before' and 10 is 'Yes! I love doughnuts!'
• Between 1 and 10, how would your friends rate you?

Your support

Running a business can be isolating and stressful. Entrepreneurs rely on family and friends for social, emotional and financial support.

It is commonplace for entrepreneurs to rely on the three Fs for funding: family, friends and fools. The first two make sense because people who care about you are more likely to take a chance on investing in your business or, at least, support it as customers. Fools are those who invest on a whim without due diligence.

1 Funding

(a) Have you ‘done your sums'?

(b) Have you researched and made realistic, evidence-based forecasts of your business start-up needs?

Which most applies to you:

• I am confident that I have accurately forecasted the start-up costs (rent, equipment, technology, raw materials, recruitment, marketing).
• Oops, I need to do more research, but I have some reliable figures.
• I think I know what it will cost.

(c) Have you researched and made realistic, evidence-based forecasts of your operational costs for the first 12 months?

Which most applies to you:

• I am confident that I have accurately forecasted the operational costs (rent, equipment hire, licences, raw materials, salaries, sales and marketing, etc).
• Oops, I need to do more research, but I have some reliable figures.
• I think I know what it will cost.

(d) Do you have sufficient personal funds personally to forgo a salary or survive on an irregular and reduced income?

Which most applies to you:

• Yes, I have savings and I have budgeted.
• No, but I have included my salary in my business funding forecasts.
• No, I assumed I’d be earning from the business.

Basic business budget

2 Moral support

For small-business owners, emotional support can be just as crucial as financial support. Do you have supportive and willing family members who will assist you in the business, help with marketing, or simply be there for you?

Whether it’s just family or a mixture of family, friends and mentors, having a network of people who care about you and your business is vital to your long-term health and well-being. Remember, without you, there is no business.

Approximately 72% of entrepreneurs are directly or indirectly affected by mental health issues compared to just 48% of non-entrepreneurs, according to a study by the National Institute of Mental Health. 

3 Physical well-being

Starting a small business is a marathon, not a sprint. Constantly managing change and wearing all or many different hats in the business takes its toll mentally and physically. Do you have a healthy daily routine that includes sufficient sleep, healthy food and exercise, as well as downtime? How will you incorporate self-care into the many demands on your time and energy?

Which option applies to you the most:

• I am aware of the need for self-care and I am disciplined about balancing my time with the needs of the business, my family and my body. I plan my day to allow for breaks and exercise and I pack healthy food.
• I’m a fitness freak and the business must fit into my exercise plans.
• I try to be healthy and exercise but it’s not easy juggling work, family and exercise. I sometimes eat on the go and I’m often too tired to exercise.
• Who’s got time for that?

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