Is Entrepreneurship Right for You?

Entrepreneur: "A person who organizes, operates and assumes the risk for a business venture. [French, from Old French, from entreprendre, to undertake.]"

There are many ways to become an entrepreneur, from inheriting a business or buying a franchise to marketing a production or invention you've developed. But no matter how you get there, consider the following three criteria proactively before you make the leap to business owner:

1. Is there a need in the marketplace? 2. Do you have the skills to meet that need? 3. Do you love what you will be doing?

Assessing the Marketplace If you're considering launching a startup, the first question you have to answer is: Do enough people or businesses need what my company will offer to make it worthwhile to start and grow this business?

If you live in a small town with four gas stations, and gas consumption is decreasing because of high prices and increasingly fuel-efficient cars, you're looking at a business with a difficult future no matter how wonderful your customer service is.

However, if there are no child-care facilities within 10 miles that offer quality programs, healthy meals and fun activities for preschoolers, you might have found a market that needs to be served and would be willing to pay the fees you need to grow a solid business.

In addition to simple observation, excellent places to assess the marketplace are the reference area of your library, your local SCORE office and your chamber of commerce. Each will give you a different perspective in your quest to decide whether your concept is viable, and each can point you to additional resources.

Evaluating Your Skills When we're honest with ourselves, we know our strengths and weaknesses both personally and professionally. If you're not sure of your suitability as an entrepreneur, find out where you can take the Myers-Briggs personality test and receive a comprehensive explanation of your results. Once again, talking with a SCORE counselor can be helpful.

Joining a professional association related to your area of interest will introduce you to people already doing what interests you or who are engaged in a similar business. You'll quickly discover whether your skills are similar to those of the successful members around you.You can also set up an informational interview with someone who's successful in your intended field. That will provide you with a wealth of information to help determine whether you're a good fit for the business you're considering.

Sizing Up Your HeartIt may sound strange to talk about love and what your heart tells you when discussing entrepreneurship, but this may well be the most important of the three assessments. Starting and running your own business is not a 9-to-5 proposition. The early stages of a business--which can last a good, long while--can easily consume nearly all your waking hours, challenge established relationships and change many life patterns.

If the product or service you are bringing to market is one you feel deeply about, you'll be more willing to make the necessary sacrifices. The commitment of energy and finances can be enormous. If you know you might not be willing to make this commitment, it's best to be honest with yourself at the outset and consider another path.

Starting and leading the growth of a business is one of the most rewarding endeavors we can undertake. We vastly increase the likelihood of overcoming the inevitable challenges if we've assessed the marketplace, our skills and our heart.

Suggested reading:

What Color is Your Parachute?By Richard Nelson Bolles