Motivation
Being aware of your own motivations for becoming an entrepreneur and starting a business is critical to your journey. It is what drives you when the going gets tough and will often determine your priorities and the decisions you make both for yourself and your business.
Common types of motivation include:
- desire for control and independence
- more freedom and time
- increasing your earning potential
- not able to get a job
- doing something you are interested in or passionate about
Mindset & Attitude
Adopting the right mindset will help you greatly with your transition into entrepreneurship. Many entrepreneurs have succeeded because they have the right attitude towards the challenges and problems they face.
- I will have to deal with challenges on a daily basis
- I will not be afraid to make mistakes
- Failure is just part of the process – what can I learn from this?
- I will be adaptable and flexible because change is the only constant
- I will be realistic, especially when it comes to my financials
- I will be prepared to get out of my comfort zone and do what does not come naturally, like networking, giving presentations in front of hundreds of strangers, or cold-calling
Do you believe that these are true? If not, you might want to start thinking about incorporating these mantras into your belief system.
Personal Characteristics
Starting, running and sustaining a successful business will require a fair amount of blood, sweat and tears. Do you have what it takes? Are you aware of your strengths and weaknesses?
There is no such thing as the “perfect” entrepreneurial profile, but there are some characteristics that many successful entrepreneurs have in common, such as:
- passion
- discipline
- stamina
- persistence
- courage
- determination
- drive
- Vision
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- appetite for risk
- “can-do” attitude
- initiative
- creativity
- good instincts
- willingness to work hard
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Skillset
Having competent technical skills in your chosen trade is often a given. In addition to that, it will help greatly if you have:
- leadership skills
- good people skills
- financial knowledge
- sales and marketing knowledge and experience
Support
Do you have support from all your key relationships, like your spouse, family and friends? Starting a business will be one of the most stressful things you will do in your life and you will need as much support as you can get.
They need to understand the hard work needed, and support you when you have to work long hours or miss that family event. Communicate needs and expectations regularly.
Financial
Taking care of the financial aspects of both your personal and professional life will be the key to the success or failure of your business venture. Are you financially prepared?
- Do you have at least 6 - 12 months of savings to tide you till you are able to draw a salary or turn a profit?
- Do you have heavy financial commitments like a mortgage, car loans, children’s education needs, medical expenses? If so, do you have a financial plan in place to handle these?
- Are you prepared to cut down on your expenses and be more frugal?
- Is your personal credit history in shape? This will be important if you need to access credit facilities or borrow money.
Common Mistakes
Beware of common mistakes:
- unrealistic business and revenue plan
- spending too much on set-up cost and inventory
- not controlling cash-flow
- under-pricing or over-pricing
- not seeking advice from experts like lawyers, accountants
- not understanding your legal and tax obligations
Use our Self-Assessment Checklist (EXCEL) to assess and evaluate your potential as an entrepreneur. In the process, you might just get to know yourself better, and better prepare yourself for the journey of entrepreneurship.
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enterpriseone@spring.gov.sg