Do You Have What It Takes To Become An Entrepreneur?

Do You Have What It Takes To Become An Entrepreneur?


Do you have what it takes to become an entrepreneur? Even though it is considered the definitive American dream, it is also true that not each and every individual is cut out for this line of work. Furthermore, if you do choose to bid a fond farewell to your corporate boss and the trusted third party paycheck that arrives like clockwork every couple of weeks in an amount you have grown accustomed to, here are thoughts to consider prior to handing in that final resignation and throwing open your doors for business.

1. Remember that you are the business and the business is you. Since these two entities are virtually inseparable in the eyes of the consumer, your business shortfalls are automatically transferred to your person. In other words, if in the course of doing business you make a mistake, lose track of an order, or conduct yourself in a manner that a customer finds objectionable – it is immaterial if the problem truly was your fault or if it is more in the mind and perception of the consumer – this feeling and reputation will follow you around personally. Are you able to weather this kind of burden?

2. Your business’ bills become your bills. If you fail to pay for your business phone service, it will be shut off, but in some cases the bill may become attached to your personal phone line’s billing. Do you have the financial wherewithal to cope with the reality of doing business while keeping your personal finances afloat as well?

3. Do you have a plan to incorporate your business? This is a protective step any would be small home based business owner needs to take to protect her or himself from the financial ramifications of lawsuits, judgments, and other legal liabilities.

4. Do you have a plan to continue saving for your retirement? Although you may get lucky and build a multi billion dollar empire, the odds are good that your business will not provide you with this kind of nest egg for your golden years. Since the company matched 401(k) is no longer a comfortable cushion to fall back on, you will be wise to set up your own SEP IRA and faithfully contribute to it in an effort to ensure that your future is taken care of.

5. Make sure to “render unto Cesar” that which Uncle Sam demands. Failure to understand the tax laws as they pertain to your new venture and then to make you tax payments in a timely manner has caused more than just one business to finally close down in an effort to liquidate assets and pay off the Internal Revenue Service. Educating yourself ahead of time may save you years of grief!

Even as these steps sound daunting, they do not have to be. Instead, they serve to find out if you have what it takes to go into business and then successfully remain there! By finding out the answer ahead of time you will be well prepared for the road that lies ahead.

Tod Campbell

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