Small Business

Many people find the potential independence and financial rewards

that can come from owning a small business very appealing. For some,

owning their own business has been a lifelong dream. Many people,

however, hesitate to pursue this dream because they don’t think they

have enough education, experience or money – or are simply afraid

they might fail. Others can’t accept the idea that they can change their

lives – that people like them could ever own their own business. For still

others, going into business for themselves is a financial necessity because

they have lost their job and there are no other readily available ways to

earn a living, or even survive.

Whatever the reason, owning your own business can be one of the

most challenging, satisfying, demanding and rewarding things you do

in your life. However, there are real risks and difficulties in starting any

new business.

Small business owners are also called entrepreneurs. One definition

of an entrepreneur is someone who organizes, manages and assumes the

risks of a business or enterprise. Other experts say an entrepreneur is a

person who can “create out of nothing” a viable business.

There are a number of myths and misconceptions about what it takes

to be an entrepreneur. One misconception is the people who go into

business for themselves are naturally high risk-takers. Of course, there

are risks in business, but real entrepreneurs aren’t gamblers who depend

solely on chance to succeed.

In fact, just the opposite is true: successful entrepreneurs do every-

thing possible to minimize the real risks associated with starting a com-

pany by studying, planning and organizing the information, people and

materials they will need to succeed. They manage risk by setting reason-

able and obtainable goals – then work to achieve them. In short, the

successful small business owner works hard and intelligently.

Despite what many think, starting a successful small business does

not always require a lot of formal education or prior management ex-

perience. Certain basic skills will be needed, plus some background in

the business being contemplated. Just as important as formal education

is the willingness to learn and improve the skills needed to succeed in

business.

One of the biggest misconceptions about entrepreneurs is that they

are only interested in making money. Entrepreneurs certainly like and

respect money, but money is only a byproduct of an even bigger goal for

many very successful entrepreneurs.

As one U.S. expert on entrepreneurial management observed,

Many businesses fail because their owners were only interested in money.

Most really successful companies are founded by someone with an idea and

a dream. Whatever money and wealth they accumulated is the result of

them being willing to work night and day to make this dream a reality. If you

want to be really successful, know what your dreams are before going into

business.

There are also a number of common traits successful entrepreneurs

share:

– a great deal of energy;

– ability to establish priorities and make decisions;

– ability to deal effectively with a wide variety of people, such as cus-

tomers, employees, suppliers, possible investors and lenders;

– ability to communicate clearly and effectively;

– ability to work with numbers;

– familiarity with customers and with the products or services to be

sold;

– ability to balance conflicts between business and personal goals;

– awareness of personal strengths and weaknesses.

Becoming an entrepreneur is a way of looking at the world, seeing

opportunity where others see problems. It is also knowing how to use

certain basic tools to achieve your goals.