Three key things for entrepreneurs to consider before starting their own business
The benefit of a challenging economy has been the inspiration for new business. As individuals find themselves out of a job they may have held for decades, they are no longer taking their talents elsewhere. Instead they are choosing to create their own jobs; and in the process, jobs for others.
On a recent visit to the W.P. Carey School of Business at Arizona State University, I had the honor of meeting a group of enthusiastic future entrepreneurs. Growing up during a time of uncertainty has inspired these students to explore the possibilities of starting their own businesses.
Whether you are a college student with a great idea or a professional seeking to take control of your fate, there are three key things for entrepreneurs to consider before starting your own business and venturing into the world of entrepreneurship.
Do something you’re passionate about
Being in control does not mean more free time. Starting your own business will consume the majority of your time and energy. But if you are passionate about what you do, it won’t feel like work. And when you love what you do, you are more likely to be successful. Think about what you know, what you like and where you may be able to fill a need or provide a benefit to others. This line of thinking most often leads to great ideas that can ultimately become great companies.
The right person for the job
Entrepreneurs wear many hats, especially during the start-up phase. In the beginning, you may be the receptionist, janitor, most valuable employee and CEO — often simultaneously. At a certain point, though, you will be ready to hire full-time employees or need to contract expert help. Running a small operation makes it essential to surround yourself with strong people that fill your weaknesses. While you may be a very knowledgeable about your industry, it does not mean you understand how to execute marketing, public relations or finance.
When hiring, take the time to find people with the right experiences and qualifications to fit your needs. Also, consider personalities, work environments and schedules. As you begin building your team, you want to do your best to find people that you can work well with and will help grow the organization. Finally, consider the qualifications of the team as you reach out to secure potential investors.
Understand the numbers
Entrepreneurs tend to be great idea people or visionaries, but successful entrepreneurs know and understand the financial side of things. If you are still in school and think you may want to launch your own business someday, consider majoring in accounting. If you graduated already, consider taking a few accounting courses. If the thought of accounting repels you, partner with someone or hire someone who understands accounting to serve as a trusted financial adviser. Knowing the numbers and how they are calculated can help to eliminate the risk of fraud. It will also boost your credibility when talking to potential investors because they will realize you know the ins and outs of your company.
Starting a new business is a risk, but the rewards can be great. Taking charge of your own destiny and being your own boss can be empowering and challenging. In the end, having passion for what you do, the determination to make it happen and the dedication to see it through will be what sets you apart from others.