Personal Factors to Consider when Starting a Business

Some people are born natural entrepreneurs while some are contented with being an employee.  Here are some personal factors that you need to assess before starting your own business:

  • Risk Tolerance: Starting your own business entails a higher degree of risk than keeping a comfortable job.  These risks include financial hardship, the prospect of bankruptcy and going out of business, and personal risks like not having enough time for the family.  Before starting your own business, be sure you are prepared to accept these risks. 
  • Family Support: Ask your family whether they are willing to support you in your decision to start a business.  Your chances of succeeding can greatly improve if you have your family's support behind you. Also, a non-supportive family can be very demoralizing and bring you more troubles and headaches.
  • Health Insurance: Quitting your day job could also mean losing access to affordable health insurance.  Be prepared to get your own or share it with your wife's policy.  Having insurance is crucial for your physical and financial well-being.  Simply said, if you are sick, no one will be there to run the business for you.
  • Self-motivation: Being on your own, without having a boss give you orders, means that you have to keep yourself motivated.  Plus, having no other employees or colleagues around can make for a lonely work environment.  You must be prepared to look for that drive within you and not rely from others.  On the other hand, lack of distractions may help you accomplish more in a shorter amount of time.
  • Experience: The more firsthand experience and training you've had in your business field, the better your chances for success.  You might consider working for a company in the the field you've chosen for a while or hire someone who has experience in the field.
  • Weaknesses: You can't be a master of everything.  Everyone has weaknesses.  Learn to solicit the help of others, through skilled employees or personal advisors to complement your skill set. 

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