Keys To Being a Successful Small Business Owner

Before starting or acquiring a small business, it is important to take the time to review a wide array factors and considerations about yourself and the business you plan to enter.

Be honest with yourself. Know what you’re getting into.

In business, there are no guarantees. There is simply no way to eliminate all the risks associated with starting a small business - but you can improve your chances of success with good planning, preparation, and insight. Start by evaluating your strengths and weaknesses as a potential owner and manager of a small business. Carefully consider each of the following questions:

• Are you a self-starter? It will be entirely up to you to develop projects, organize your time, and follow through on details.
• How well do you get along with different personalities? Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers, and professionals such as lawyers, accountants or consultants. Can you deal with a demanding client, an unreliable vendor, or a cranky receptionist if your business interests demand it?
• How good are you at making decisions? Small business owners are required to make decisions constantly - often quickly, independently, and under pressure.
• Do you have the physical and emotional stamina to run a business? Business ownership can be exciting, but it’s also a lot of work. Can you face six or seven 12-hour work days every week?
• How well do you plan and organize? Research indicates that poor planning is responsible for most business failures. Good organization of financials, inventory, schedules, and production can help you avoid many pitfalls.
• Is your drive strong enough? Running a business can wear you down emotionally. Some business owners burn out quickly from having to carry all the responsibility for the success of their business on their own shoulders. Strong motivation will help you survive slowdowns and periods of burnout.
• How will the business affect your family? The first few years of business start-up can be hard on family life. It’s important for family members to know what to expect and for you to be able to trust that they will support you during this time. There also may be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk in the short-term.

Keys to success

According to the U.S. Small Business Administration, the following traits are found among successful entrepreneurs:

• persistence
• desire for immediate feedback
• inquisitiveness
• strong drive to achieve
• high energy level
• goal oriented behavior
• independent
• demanding
• self-confident
• calculated risk taker
• creative
• innovative
• vision
• commitment
• problem solving skills
• tolerance for ambiguity
• strong integrity
• highly reliable
• personal initiative
• ability to consolidate resources
• strong management and organizational skills
• competitive
• change agent
• tolerance for failure
• desire to work hard
• luck

Start with questions about yourself and the business you want to pursue.

Your answers will help you create focused, well-researched business plan that should serve as a blueprint. It should detail how the business will be operated, managed and capitalized. Before starting out, list your reasons for wanting to go into business. Some of the most common reasons for starting a business are:

• You want to be your own boss.
• You want financial independence.
• You want creative freedom.
• You want to fully use your skills and knowledge.
• What do I like to do with my time?
• What technical skills have I learned or developed?
• What do others say I am good at?
• How much time do I have to run a successful business?
• Do I have any hobbies or interests that are marketable?

Then you should identify the niche your business will fill. Conduct the necessary research to answer these questions:

• Is my idea practical and will it fill a need?
• What is my competition?
• What is my business advantage over existing firms?
• Can I deliver a better quality service?
• Can I create a demand for your business?

The final step before developing your plan is the pre-business checklist. You should answer these questions:

• What business am I interested in starting?
• What services or products will I sell? Where will I be located?
• What skills and experience do I bring to the business?
• What will be my legal structure? 
• What will I name my business?
• What equipment or supplies will I need?
• What insurance coverage will be needed?
• What financing will I need?
• What are my resources?
• How will I compensate myself?