19 June, 2007

No more nagging boss, no more middle-management games; you're free to take fridays off for a long weekend away... It sounds great doesn't it? But running your own business is hard work, stressful and often requires even more time than you'd spend at the office as an employee. It takes a certain mentality and determination to succeed in self-employment, but if you can pull it off the personal satisfaction and financial rewards make it all worthwhile. But before taking the plunge, consider whether you've really got what it takes - you'll need most of the following things in order to have a chance of success:

Self confidence

You have to know your strengths and weaknesses and have a good feel for your chance of success - but be strong enough to endure the inevitable setbacks.

Motivation and determination

There are many ups and downs when running a business. Strong motivation is essential if you are to stay on track.

Good financial management

Know your numbers, even if you hire an accountant. If your financial management skills are lacking, then do an extramural university course to get up to speed before you quit your day job.

Some financial security before you start

You'll need money for startup costs and a few months worth of savings to live on while things get going. Caution! Many start-up businesses fail so you'll also need to have something set aside to live on while you look for a new job if things don't work out.

High stress tolerance

You have to make things work - there's no blaming failures on your junior colleagues anymore. Maybe the biggest stress is the perpetual possibility of losing big money if the business takes a wrong turn.

Self-control

Set schedules, don't overspend, don't rush into things.

Good judgement

Know which contracts have a good chance of success and know when to call it a day if your plans aren't working out.

Strong communication skills

You can't run a business in a vacuum. Communication is an essential component of business and even a home-based internet business will require regular communication with banks, customers, consultants and the likes.

Professionalism

You'll need to build strong ongoing relationships to succeed in business. Clients and suppliers expect to be treated with respect.

Patience

It takes time to make things happen.

Stable personal life

There's some room to move here, but make sure your family and friends will understand and accept the stresses and demands of your new life

If you still think you've got what it takes to work for yourself, check out the articles at NZTE's Business information zone.