Do you have what it takes?

Personal qualities

Running your own enterprise can mean long hours, unpredictable schedules and thinking on your feet with little respite until you start to make a reasonable profit. And reaching that milestone can sometimes take years.

As an entrepreneur you need to:

Be passionate about what you do

Setting up your own business is challenging. If you’re not passionate about what you do, you’ll find it hard to stay motivated when faced with a string of hurdles. Also, if your enterprise is just another idea to make money and not something you’re passionate about, you’ll lack that key ingredient that will make your new venture stand out as more attractive than the established competition.

Make personal/lifestyle sacrifices for your business

You need to put in a lot of hard work to get your business from the drawing board to reality. You’ll probably have to work harder than most of your mates and make a number of sacrifices. It might mean less time with your friends, less time for sport or hobbies, or even less time with your family.

You’ll also probably be taking home less money and might need to sacrifice family holidays or put major household purchases on hold until your business is established. Ask yourself if you’re prepared to make the sacrifices necessary to make it a success – and check that your family is prepared to make these sacrifices too.

Manage risk and uncertainty

When you start your own business, you won’t have the security of regular payments from an employer. Your business might not be in a position to pay you a wage for the first few weeks, months or years. In addition, you might need to draw on your savings or even take out a loan to finance your business operations. There’s an element of risk and uncertainty when you start your own business so you need to be sure your business idea is viable, and that you have enough money to support yourself and your business until you reach your break-even point and start turning a profit.

Be patient but persistent

It’s a rare start-up that has everything run according to plan without any teething problems. You’re likely to encounter your fair share of setbacks and challenges, from financial issues to difficult customers and problem staff. While there’s a fine line between persisting against all odds (when the business is clearly not viable) and giving up when the going gets tough, you’ll need patience and persistence to make your business a success.

Skills

Very few entrepreneurs start out with all the skills they need. The secret is to do a quick inventory of your current skills and identify the gaps in your knowledge base. You can then either get the training you need or employ people with the right skills in those areas.

You need the following skills to run your enterprise.

Market research skills to understand the market you’re entering and stay abreast of market developments, customer preferences, and the actions of your competitors.

Money management skills to forecast when you expect your business to break even, understand your financial position at any point, and asses the financial implications of any business decision you make.

Marketing and sales skills to promote your products or services effectively and reach your break-even target sales as soon as possible.

People skills to help you manage and motivate your staff and deal with customers.

Negotiating skills to ensure you’re able to strike the best deal when dealing with suppliers or other contracts.

Try to develop skills in these areas over the long term. Even if you don’t like figures, for example, it’s vital you at least get a rudimentary understanding of financial statements and what the key metrics for your business mean.

Self-assessment

Answer these questions to see if you’re ready to start your own enterprise.

• Do you have several years’ experience in the industry you’re considering entering?
• Do you thrive on challenges?
• Are you prepared to undergo training to develop the skills you need or to heed input from specialist advisers in areas that aren’t your speciality?
• Do you enjoy making, and being responsible for, your own decisions?
• Are you prepared to work long hours without the security of a steady income?
• Are you prepared to lower your standard of living until your enterprise starts to make a profit?
• Do you have sufficient savings or an alternative income to live off during the start-up period?
• Do you naturally look to streamline processes and methods when approaching a task?
• Do your family understand the impact starting a new venture could have on them and support you unconditionally in your aim?
• Are you prepared to take the risk of losing the money you invest in your enterprise?
• Are you prepared to hire staff and delegate responsibilities to them or use the services of a professional?

If you answered “no” to many of these questions, it might be worth developing your skills further before going into business for yourself or investigating other options.

READ: Before you start a business in Kenya – Is your business idea viable? – Part two

READ: Before you start a business in Kenya – How to examine an idea with a start-up business plan – part three