Do You Have What It Takes To Start a Business?

Text Box: How do you figure out if you have what it takes to become a business owner?  There is more to starting a business than just getting financing, a location, and a business license.  The following is a personal inventory. It is designed to make you think seriously about your characteristics.  Characteristics suited to entrepreneurship. When you answer these questions, think of an example of a past situation you have encountered. 

  • Am I a leader?                                                  
  • Do I like to make my own decisions?
  • Do others turn to me for decision-making help?
  • Do I enjoy competition?
  • Do I have will power and self-discipline?
  • Do I plan ahead?
  • Do I like people?
  • Do I get along well with others?
  • Am I confident and optimistic enough about my ability to overcome problems?
  • Do I accept responsibility for my actions?
  • Do I like being in charge?
  • Am I comfortable in an uncertain environment?
  • Can I be motivational and inspirational to others?
  • Am I an effective salesperson?
  • Do I negotiate fairly?
  • Can I recognize my limitations and ask for help when I need it?
  • Do I get discouraged easily?
  • Have I been successful in the past in other commitments?
The next set of questions is very important to your entrepreneurial plans.  These take into consideration the personal, financial, and physical strains of owning your own business. Answer these questions carefully.  These issues may have far reaching effects on your life for years to come.
  • Are you aware that owning your own business may require you to work 12-16 hour days, weekends, and holidays?
  • Do you have the emotional strength to handle the various strains?
  • Are you in good enough shape physically to deal with the heavy workload?
  • Are you prepared to take a decrease in your standard of living until your business is established?
  • Are your family and friends aware of the strains that they must bear as a result of your business?
Is Your Business Idea Feasible?
Answer the following questions regarding your idea.  Give complete, well thought out answers to these questions. If you are unsure about or answer no to any of the following questions, then you should rethink your idea
  • What type of business do you plan to start?
  • What kind of product do you plan to offer?
  • Will your product satisfy a need yet unfilled?
  • Will your product have a competitive edge based on price, location, quality or selection?
Researching Your Markets
It is recommended that you research your potential market demand for your product or service.  First, determine what questions you need answered.  The following are ideas on where to find the information you need. 

Primary Data: 

  • Your experience
  • Experiences of people you know
  • Survey potential customers to determine their wants/needs
  • Observe similar businesses
  • Interview these business’s owners
  • Interview suppliers, vendors, bankers

Secondary Data:

  • Visit your public library
  • Contact trade associations (i.e. trade shows and trade journals)
  • Contact the SBDC, VSU, VTI, and the Valdosta–Lowndes County Chamber of Commerce. See the Resource Directory for contact information.
  • Use various search engines on the Internet (i.e. Yahoo, Lycos, Alta Vista,etc.)
Marketing Your Business
In order to properly market your product, you need to answer the following questions.  This information can be used to help you develop your marketing plan.  The SBDC provides great assistance for constructing this plan.
  • Who are my customers?  (This determines your target market.)
  • Where are they?
  • How many are there?  (This indicates your market size.)
  • What are their needs?
  • Who are my competitors?
  • How does my competition do it?  (One method of marketing/dealing with competition is the end-run strategy.  In this strategy you adopt your competitors’ strategy with the intention of making it better.)
  • How can I reach them? (The distribution of your product is very important.  Where your product is located can affect how well it sells.)
  • How much will they pay? (The pricing of your product is also very important.  You must take into consideration what your competitors charge.)
  • What are the market trends? (What are people buying?  It is important to be aware of what market trends are.  This relates back to knowing your customers’ needs.  Try to distinguish between trends and fads.)
  • What are the technological trends?  (One obvious answer to this question is the Internet.  Will you be using technology?  How can it be used to help your business?  Will you advertise on the Internet? Do you need a network of computers for your business?    If you are in a business related to technology, it is imperative that you stay abreast of any changes.)
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