Are You Ready for Business Ownership? A Self-Assessment Guide

Introduction

Before you decide to start your own business, you should assess whether or not you are ready to run a business of your own. The success of your business will depend on your entrepreneurial abilities (personal characteristics, situation, and skills) and your commitment to the environment and community. You should consider which of your characteristics needs improvement and then try to change your situation and skills.

Assess Your Readiness To Start a Business

Many people believe they have what it takes to be an entrepreneur but even more of them unfortunately make the mistake of evaluating first if this is even something they are capable and qualified to do, which is a very important step in the process of business ownership.

Be READY, It Increases The Longevity of Your Business!!!

Questions to Help You Make The Decision, Is Entrepreneurship Right For Me?:

Remember when you ask yourself these questions, you must annotate two things, is this an AREA OF STRENGTH, or is it an AREA THAT NEEDS IMPROVEMENT?

1)       COMMITMENT- For your business to be a reality and to succeed, you must be committed. Commitment means you are willing to put your business before almost everything else. Do you want to be in business for a long time? Can you spend most of your time and efforts on your business?

2)       ABILITY TO HANDLE STRESS- Entrepreneurs are subject to a lot of stress. Stress may be the result of either difficult decisions that must be made, dealing with stakeholders in the business, or working long hours. Are you excited about your business prospects? Do you derive a great deal of enjoyment from your work?

3)       GOAL ORIENTATION- One feature that differentiates an entrepreneur from an employee is the ability to develop and achieve goals. You should be able to envision where your business is headed and to see the bigger picture, rather than just focusing on minor details. Have you drawn a vision and set a goal for your business?

4)       MOTIVATION- Your business is more likely to succeed if you are very motivated to try your business idea, create wealth, and make your money work for you. Do you know clearly why you want to have your own business?

5)       TAKING RISKS- There is no absolutely safe business idea. You always run the risk of failure. Are you prepared to take risks? Are you willing to risk your money to invest in your business?

6)       PROBLEM SOLVING- Running your own business requires that you are able to solve problems. Do you have the ability to solve the root cause of problems in creative ways?

7)       MAKING DECISIONS- You are in charge of your business, which means that you must make decisions that may lead to either success or failure. Important decisions cannot be postponed or passed on to someone else. Can you make difficult decisions by yourself?

8)       SOCIAL SUPPORT- Running your business will take a lot of time and effort. It is important to have adequate support from family, friends, and other businesspeople. Do you have a social network of people and organizations that will support the realization of your dream?

9)       FINANCIAL SITUATION- Access to financial resources to start your business is important. Have you set money aside to get your business started? If you need additional funds, do you have family or friends who might be willing and able to lend you money, to use their assets to guarantee your loan with a financial institution? Do you have savings or credit history with a financial institution that offers loans to new businesses?

10)   TECHNICAL SKILLS- Technical skills are the practical abilities you need for your business idea to result in goods produced or services provided. For example, if you want to start a cell phone service and repair shop, you need to know how to repair cell phones. Do you have technical skills that are necessary for your business?

11)   BUSINESS MANAGEMENT SKILLS- Business management skills are the ability to run your business efficiently. Do you have skills in marketing, costing, record keeping, people motivation, etc.?

12)   KNOWLEDGE OF YOUR LINE OF BUSINESS- The more you know about your line of business, the more you will avoid making costly mistakes. Do you have a detailed knowledge of the specific type of business that you want to start?

13)   NEGOTIATION SKILLS- Negotiation skills is the ability to communicate with others without offending anyone. When you negotiate, you not only think about what is in your favor, but you must be aware of things that are in the other person’s favor also. Can you get what you want from a negotiation in a way that both parties can benefit?

14)   YOUR BUSINESS AND THE ENVIRONMENT- As an entrepreneur, you need to know about the environmental issues affecting your line of business. Do you know how to sustain the natural capital or resources on which your business depends?

15)   COMMITMENT TO YOUR COMMUNITY- Your business needs to be community-friendly. Entrepreneurs are important members of the community, and you need to have a commitment to the advancement of the community as a whole. Do you have a good relationship with the community?

Conclusion

At JMPS Group LLC, we take the guesswork off the shoulders of our prospective entrepreneurs. We offer an extensive process for any client who is interested in entrepreneurship. We start with the “Entrepreneurship Readiness Quiz” created by our very own CEO Denita M. Minnis who has not one, not two, but three successful businesses. The quiz gives prospective entrepreneurs a sense of what it takes to be a business owner and helps them evaluate their qualifications. Then it’s scored based on the prospects' honest answers and reviewed by the JMPS Group mentor.  Even if they find they are not ready at that moment, JMPS Group believes in providing them with the necessary next steps to prepare them for their entrepreneurial journey!