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I. Starting Out

A question I am often asked by my friends and associates generally concerns whether they or a friend should consider striking out on their own in business. Unfortunately, these conversations are often brought up as a result of an action that has been taken by an employer to right-size, down-size or refocus on their core businesses or whatever jargon some consultant gave them. These are most often more senior people that would otherwise never consider taking the plunge into ownership. Of course, these facts do not preclude that person from being successful. However, it is often a greater personal struggle for them because they were successful in what they were doing and may have loved and believed in what they were already doing. To leave behind the negative feelings they have and to take the positive talent and skill they have and focus on going their own way takes a great deal of courage. To these people and others, I urge you to clear the deck and revisit the dream of owning you own business.

I do not believe that there is one person who can honestly say that they have not thought about what it would be like to be in business for themselves. Many people dream about being masters of their own destinies and captains of their own ship. However, far fewer of us take this Sunday afternoon wishful thinking beyond just that; wishful thinking. This is probably a good thing given the high failure rate of start-up businesses. Not everyone was meant to be President of the United States nor president of their own company. Is there a way to test yourself to see if you have what it takes to be an entrepreneur before you totally commit to a specific venture? How do you know that you have the right stuff? Just as important as your personal qualifications, do you have the right form of organization, operations capabilities, product or service that will work and the financial capital to get you there? finally, is this the right time, location and economy to launch you new enterprise?

In this article, I will attempt to respond to the first question that I have raised to assist you in your initial evaluation of whether a start-up business is the right strategy for you. Do you have the right stuff?

II. The Right Stuff

Do you have the right stuff to succeed at owning your own business? this is where your entrepreneurship evaluation must begin. this is true whether you are considering a sole proprietorship, corporation, limited liability company, or limited or general partnership with a large number of individuals. In fact, it becomes far more complex a question when you plan to introduce other owner/operators.

Beginning a business with other operation corporate owners, members or partners may allow you to complement you own talents and skills. However, you also need to recognize that making a collection of personalities able to work together smoothly requires the evaluation of additional sets of personalities, skills and legal agreements that you must evaluate in the same manner that you are evaluation yourself. Truly passive owners or limited partners, however, require far less scrutiny.

I am not discouraging you from going into business with other owners. I am urging you not to skip the step of evaluating whether you and your owner/operators to be have the right stuff. If it turns out that you discover later that you discover later that you or any or any of your partners falls short of expectations that are not reflected in the legal agreements prepared at the time you start-up, then you may find that you traded a few complementary skills for much aggravation and lost income.

How do you evaluate if you have the right stuff to succeed? As you know, there are a variety of books that will assist you to self-inventory you personality as well as your skills. In addition, there are industrial psychologists that will test you as to personality traits and interests suitable for various occupations. However, none of these are a guarantee of success.

I would like to share with you certain personal characteristics I look for in would be entrepreneurs that you may want to evaluate before spending time and money filling out detail questionnaires and undertaking professional interviews. These characteristics include:

• Discipline - You have to have the ability to manage yourself before you can lead others. You should not ask anyone working with you to do anything that you would not do yourself.

• High Energy Level - Success requires drive and the capability to concentrate for periods of time.

• Humor - I have noticed that successful people are able to make fun of themselves to maintain their mental equilibrium when under stress from long hours and business challenges. You do not have to be the next 'Roseanne," buy you should not purport to be 'Scrooge' either.

• Integrity - A person who does not treat his customers, employees and partners fairly and honestly will not stay in business very long. It comes down to understanding right from wrong. In short, you are as good as your last transaction.

• Persistence - You must possess the tenacity to overcome defeat and temporary failure. In short, you have to be able to accept rejection, regroup and continue.

• Realistic - You should set goals that are achievable based upon the current circumstances. This does not mean you set your sights too low and rest on laurels. Your laurels may not be as deep as you think. Today's business environment is too competitive not to be continually revising your goals upward and revisiting your strategies.

• Vision - You do not need to be Albert Einstein, but it would be nice to be smart enough to know what you do not know. You also need to possess the strategic vision to know where you are going and how to get there

What do you think? Do you have the right stuff? This is a difficult evaluation for most human beings to make. A trusted outside advisor could be invaluable in this process. I suggest grading each characteristic response from 10 (trait strongly held) to 1 (trait completely absent).

What if you fall a little short? A score below 61 would give me some concern. A score below 51 would likely cause me to consider suggesting another career path.

You have to question yourself. Are you willing to become the person that would likely have the right stuff? Certain of the above characteristics can be learned, but it depends entirely on you. It comes down to how important is it to you that you succeed?

You have stopped at square on the road to business ownership. However, it may be the most important evaluation you ever do. Once you are satisfied that you and any other owner/operators have the right stuff, the business planning process leading to your personal and financial success and independence can start.

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