Many people dream of going into business for themselves. The five-year failure rate for new businesses comes in at a disappointing 50 percent. Many people start businesses without a good understanding of the skills they will need to make their idea a success. Dr. Donald Littlejohn, a chiropractor based in Chester, New York, lists the top 6 skills that every entrepreneur must have before starting a new business or medical practice.
1. Strong Work Ethic
If you have the impression that going into business for yourself will mean a reduction in your workload, you are wrong. New business owners work extremely long hours with little compensation. Being responsible for every aspect of a business, from marketing to financial concerns and the actual work done by your business, can be overwhelming. Make sure that you are fully ready for the commitment that is required by a new business owner before you start.
2. Financial Stability
Before you start your own business, it is helpful to be on a secure financial footing. New businesses often do not make money right away, and it is necessary to have funding for any emergencies that may occur. If you have a spouse with a well-paying job, it is best to let that spouse stay in the job as long as possible. Ideally, you should have six months’ worth of living expenses saved before you start a business. That way, you will be prepared in case the worst outcome happens with your business.
3. Solid Planning
When you are putting a business plan together, make sure that you have considered every eventuality. You will need to plan for funding, space, inventory, and employing other people. Lenders need a strong business plan in order to provide funding for your business. They will not lend money to an operation with shaky foundations.
4. Financial Savvy
You need to be capable of handling your own books and taxes. If this is not the case, you need to hire a trusted accountant. Business taxes are far more complex than individual filings, and there are many pitfalls for the unwary. If your new business does not handle its finances properly, you could be in significant legal jeopardy.
5. Hire Wisely
Dr. Donald Littlejohn believes that when you are planning a new business, be sure that your first employees are dedicated to your mission. You will need to hire people who are responsible and who do not need an excessive amount of handholding to get their jobs done. It is best to make sure that your entire business is not staffed by friends and family members. These people may take advantage of you, and they may cause your business to lose momentum.Hiring too many family members can also disrupt the flow of work at your company. Family members need to understand that if they work for you, they are employees and not co-managers. This can cause serious hurt feelings in many families. It may be best to avoid the situation altogether.
6. Promotion and Marketing
When you have a new business, you will be responsible for handling the promotion and marketing. If you have a medical practice, try to work within your existing networks of patients and fellow providers to get the word out about your new business venture.If you are starting another type of business, you will need to explore the use of advertising, local networks like the Chamber of Commerce, and social media. You may need to hire a dedicated marketing firm to get the job done correctly. When you are starting a new business, it is likely that you will not have enough time to devote to marketing.
Making Your Idea Work
If you have all of these skills, you may be ready to go into business for yourself. You will have to devote far more time to your new business than you did to your previous job. Remember that business creation is a risky endeavor and be ready for any eventuality. Be sure that you handle your finances wisely to avoid costly audits.
Dr. Donald Littlejohn encourages new business owners to educate themselves about the realities of doing business. When you have a good idea for a business, a significant amount of work will go into starting a successful company.
