Small Business Ownership: Is it for me?

Posted by Tom Monastra on October 2, 2013

You’re married, 45 years old, two children, and a mortgage that seems like it will never end. Your spouse earns a good income but it takes both incomes to ensure a good quality of life. You’ve been at the same job for 10 years and you can’t wait for the weekend. You say to yourself – “I should go out on my own”- but should you?

The scenario presented is probably more common than you would imagine. The Gallup organization has done extensive research on Employee Engagement in America (simply put – are you really engaged and excited by your work) and the results are sad. Many of us go to work, put in our hours, collect a check, and go home with little excitement and enthusiasm. Although that may be the case, is business ownership right for everyone? The answer to that is a resounding no, however for some – it may well be quite literally a lifesaver! If you are thinking about setting up your own small business, be honest with yourself and see if you possess the traits listed below. These traits are required of all small business owners.

You (and your spouse) are OK with Risk. The statistics on business success rates are – well interesting. The percentage of new businesses lasting more than two years is typically around 67% and the percentage lasting more than four years is around 44%. So how are you with risk? Let’s face it, if you and your spouse are looking forward to collecting a pension in your retirement – maybe business ownership is not for you!
You have the ability to “hang tough”- in other words - Perseverance and Endurance. Small business owners are made of tough stuff! I have no doubt that 100% of the people that started a small business hit serious obstacles and roadblocks – 100%. Serious challenges are part of small business and if you do not feel you can tough it out, please do not start a business.
You will need to be Resourceful. You can build a business plan that the top MBA schools would use as an example of the ultimate business plan and the truth is resourcefulness will still be required. Why - it is impossible to account for every eventuality that will come your way. Yes, you will need to think on your feet, change direction, modify your plan all while making payroll on Friday. If you do not possess resourcefulness, maybe business ownership is not for you.
You will need to be Action Oriented. In small business, “kicking the can down the road” just does not work. As a small business owner, you need to make decisions and act on them. You will not have the luxury of study after study and report after report. You will not have the money to pay for them and more importantly, it will not work. There is a saying in small business that you need to avoid “paralysis by analysis. A quote from General George S Patton seems to fit nicely as well; “A good plan violently executed now is better than a perfect plan executed next week.” If you have the need to “dip your toe in the water and weigh every possible option before jumping in” you should rethink starting a small business.
You need to be a Positive Thinker. Let’s get back to that pension mentioned previously. As a business owner, you need to create your own “pension” as there is no one promising you a good life in retirement. Small business people have deferred gratification without a guarantee of any gratification at all. No parachutes to let you down slowly; just your ability and hard work will create your “pension”. If you are unable to be positive and see a great outcome down the road, stay employed.

In the next article, a frank discussion will take place on whether it is better to “go it alone” or join a franchise.

About Tom & Charlene Monastra

Tom is a small business owner that has been self-employed since 1982. He founded Omni Equipment Corp., an office automation business. He ran Omni for eighteen years and sold the company to Toshiba Corporation. He and his wife Charlene joined Great Clips as franchisees, opened, and ran three franchised hair salons. He has also published an advertising magazine for three years. Currently Tom works as a franchise broker helping people get involved with good franchise opportunities. Tom & Charlene have been residents of West Chester since 1985. They have three great kids, a wonderful son-in-law and a grandchild! To research franchise opportunities or learn more about the services Tom provides, go to http://www.franchiseopt.net