July 13, 2010

Are you compatible with Entrepreneurship? Part 3 of 3

Business Rule# 3- Define Your Purpose
Now that you have figured out what it takes to become an entrepreneur and your compatibility with entrepreneurship, now it’s time to figure out the reason you want to start your own business. The cause for many entrepreneurs’ to enter small business varies but a lot of the reason is motivated from some sort of frustration with their current employer. Which is a perfectly fine motivation to begin entrepreneurship but believing that all your problems will be lifted once you go into business for yourself is going into entrepreneurship blindly. 

By understanding why you want to start your own business it will help you figure out if starting your own business is a good idea or not. According to Rhonda Abrams in Six Week Start Up, she summons the reason for most entrepreneurs in what she calls the Four C's; Creativity, Control, Challenge and Cash (1). The motivation for the start of many small business can be easily identified in one of the Four C's and being able to identify where you fall into this category will bring you closer to understanding if entrepreneurship is for you. The list below is a guideline based of Abrams Four C's that can help you define what your business goals are.

Most Common Business Goals:
  •     To have creative control
  •     For management control
  •     For the experience
  •     To achieve financial success or security.

Defining your business goals will help you understand why you we want to start your own business. Once you have identified and defined your business goals it’s now time to think about if you are going into business for the right reasons.  Are you holding on to ill feelings from your previous employer and is that anger your business foundation? Are your business goals in sync with the character traits identified earlier?

SBS Business Start-up Rules
#1 Know Thy Self
#2 Be Informed
#3 Define Your Purpose

Over the past three days we have discussed simple business rules that will help limit risk and confusion regarding if you should start your own business. Combining all three parts of the business rules into your decision making process encourages a deep reflection and better understanding of how to decide if entrepreneurship is for you.

Are you compatible with Entrepreneurship?

For further study
Work Cited:
(1) Abrams, Rhonda M. Six-week Start-up: a Step-by-step Program for Starting Your Business, Making Money, and Achieving Your Goals. Palo Alto, Calif.: Planning Shop, 2004. Print.

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