Do You Have The Skills To Be A Small Business Owner?
Every day, thousands of hard-working Americans dream of becoming entrepreneurs, and driving their desire is everything from gaining more purpose, to being their own boss, to pursuing their passion. According to recent survey data from Constant Contact, when asked why they run a business, 62 percent cite the opportunity to pursue their passion, 59 percent say the freedom to control their professional life, and 50 percent mention flexibility.[1]
For those that make the leap to owning and running a small business, it can be a hard climb to maintain success. Of all the small businesses started in 2005, 46.5 percent were still running in 2010, according to the Bureau of Labor Statistics, and the 10-year survival rate is 33 percent.[2] However, there are plenty of strategies to employ when you’re starting a business that can set you up for a greater probability for success down the road.
In addition to motivation and the ability to withstand uncertainty, successful entrepreneurs share a handful of the following traits.
Ability to Focus
More than 50 percent of entrepreneurs feel they must focus exclusively on their small business, and lack time for themselves.[3] Know off-the-bat that starting and running a business will take up a good chunk of your time, and be sure to leverage organizational and time-management behaviors to efficiently spend that time.
Ability to Sacrifice
Vacations are spaced few and far between for business owners, as more than 40 percent of entrepreneurs say they don’t take vacations, and have their money invested in their business.
Ability to Deal with Ambiguity
“Things won’t ever be black and white, so a business owner has to have both the willingness and the ability to make tough, unpopular calls,” says Linda Henman, PH.D., and owner of the Henman Performance Group, which helps Fortune 500 companies and small businesses achieve profitable growth. “When you own a company, there are no guarantees. You won’t always have predictability, but others will depend on you to supply it. So, while you can’t be sure of your income next month, your employees will expect a paycheck, whether you made money or not.”
Ability to Multitask
Late nights are not the hardest part of being an entrepreneur. Instead, 43 percent of small business owners say that becoming an expert in many areas including sales, marketing, operations, payroll and HR is the most challenging part of running a business.[4]
Ability to Withstand Pressure
Forty percent of entrepreneurs face more direct competition than they did five years ago, thanks to daily deals and online comparison shopping.[5] This should encourage business owners to consider what makes them different from competitors and which consumers they’re targeting, in order to build stronger ties.
Ability to Be Resilient
It can be rough seas for small business owners. Sixty-five percent of entrepreneurs said they’ve made concessions to economic pressures, including reducing operating budgets and dropping hiring plans.[6]
Owning a business is one of the hardest jobs, but can be the most rewarding. According to the survey, 84 percent of entrepreneurs say they would do it all over again. And, to go a step further, small business accounts for almost half of all U.S. jobs and more than half of all U.S. sales,[7] so do not underestimate the power your small business wields and the positive impact it has on your community.
[1] http://blogs.constantcontact.com/owning-a-small-business/
[2] http://www.bls.gov/bdm/entrepreneurship/bdm_chart3.htm
[3] http://blogs.constantcontact.com/owning-a-small-business/
[4] http://blogs.constantcontact.com/owning-a-small-business/
[5] http://blogs.constantcontact.com/small-business-owners/
[6] http://blogs.constantcontact.com/small-business-data/
[7] http://blogs.constantcontact.com/owning-a-small-business/