PRINCIPLE 15

Ten Steps to Take Before You Make Your Move into Entrepreneurship

The following ten moves can help you to avoid many of the pitfalls first-time entrepreneurs face. Even better, none will cost you a dime.

All you need is a willingness to flex your mind and do some mental research and development—that is, serious thinking.

1. Examine your motives. Being unhappy with your work or wishing you could make more money is not, in itself, necessarily a good reason to become an entrepreneur.

2. Have entrepreneurial characteristics, and know what they are. (List five, and be specific.)

If the five don’t easily come to mind, even after reviewing the previous fourteen principles, it isn’t fatal. But if you are having trouble picturing yourself as an entrepreneur, recognize that the journey is going to be harder for you than it’ll be for other people.

3. Be able to afford losing your investment. You need to acknowledge, before you begin, that this is a possible outcome. It’s an understatement to say that not every new venture works out. Can you deal with that, and with the fact that you may lose face before your family and friends if your idea fails?

4. Research the market. Exploring your idea from different angles helps avoid the mistake of creating a product or service that people don’t want or won’t pay an adequate price for.

5. Narrow the options. It’s extremely important to select a business that A) satisfies your personal goals, B) involves the kind of work you like to do and are good at, and C) fits your lifestyle.

6. Test the waters. Although having experience in the business you’re starting isn’t essential, your chances of success are improved considerably if you do.

7. Build your reputation and credibility today . . . so you will have access to funding when you need it tomorrow. In other words, nurture potential loan and investment sources now so that you won’t be stalled by a lack of funds later when you’re ready to start.

8. Hone your negotiating skills. Most small businesses survive on the ability of their owners to negotiate with suppliers, salespeople, and the like. One of the best ways to obtain capital is to negotiate and barter for the things you need to get started.

9. Pick the brains of others in the business. You can glean a wealth of practical information on what the business is really like (and whether it’s for you) by talking to entrepreneurs in the field you’re considering.

10. Take a course in entrepreneurship from a professor who has real world experience. Apply yourself in class to the assignments. Think outside the proverbial box and take calculated risks in seeking unique answers to class assignments.

The beauty of these ten steps is that they will better prepare you to achieve success in the future. They do that by saving you expensive trial-and-error costs, shaving losses you might incur due to lack of knowledge, and steering you into personally and financially satisfying business situations.