Before spending time, money and energy starting a new business, you should ask yourself: Do I have what it takes to own a business or, am I better suited to being an employee?
Here are seven questions that might help determine if you have a business owner’s mindset:
1. Can you start and finish tasks independently?
Employee Mindset: The boss or manager gives you a task to be completed within a certain time period and you’re expected to complete the assigned task.
Business Owner Mindset: Business owners know how to, and even like to, work independently. They are willing to take full responsibility for creating and completing their own work schedules. To take this one step farther, if you are thinking about starting a home-based business, you must also consider that there will be times when you’ll be spending hours working alone, without the company and support of others.
2. Can you set and achieve short and long term goals?
Employee Mindset: As an employee, you are working to achieve someone else’s goals.
Business Owner Mindset: A business owner takes on the responsibility for planning, marketing and overseeing the success of their business. Running a successful business means taking the time to formulate and implement a well thought out business plan. You will need to write a concise mission statement, an innovative vision for your company, short and long-term financial goals and a feasible and effective plan of action.
3. Do you have the self-discipline and self-motivation to work for yourself?
Employee Mindset: A boss or manager sets and oversees your tasks and hours.
Business Owner Mindset: Successful entrepreneurs are masters of time management and multi-tasking. Self-discipline is a vital factor to growing a successful business. A business owner must be consistently self-directed and self-motivated to do those things that will keep his/her business moving forward. Self-discipline is about doing what you say you’re going to do when you say you’re going to do it.
4. Can you manage money wisely?
Employee Mindset: Someone else takes all the financial risks for building a successful and profitable business.
Business Owner Mindset: If you decide to start a business, how do you intend to finance your business? A key factor to starting a business is being prepared to handle the financial ups and downs of opening and growing a new business. Are you willing to take business classes, learn new money management skills and even hire professionals who can help handle your finances?
5. Do you know how to measure success?
Employee Mindset: Your boss sets the standard by which they measure and reward your successes – pay raises, awards, recognition, etc.
Business Owner Mindset: A successful business owner knows, almost instinctively, how to set his or her own internal and external “barometers of success.” As an entrepreneur you are responsible for setting your own standard of excellence. It is important, even before beginning your business, to be fully aware and understand your “barometers of success” and how you professionally measure success. Do you measure success by money earned, recognition received, etc.?
6. Are you comfortable creating your own paycheck?
Employee Mindset: Your employer is responsible for your paycheck, benefits and other job related expenses. You can plan on getting paid regularly.
Business Owners Mindset: Business owners are responsible for creating their own paycheck, retirement plan, taxes, insurance, vacation pay, etc. There will probably be times when you won’t receive a regular paycheck. Being your own boss means taking risks and living with the financial uncertainty that often comes with owning a business. Are you willing to take financial and professional risks? Are you willing to live with the stress that often accompanies an uncertain paycheck?
7. Do you know your professional worth?
Employee Mindset: An employer tells and shows you how much you are worth by the amount they are willing to pay you.
Business Owners Mindset: As an entrepreneur, you determine your own worth!