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Are You Suited to Entrepreneurship

9 Answers You Need About Yourself Before Starting Your Own Business

If you think starting a business is only about financing a good idea, you have a lot to learn the hard way.

Ryan McMunn

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When considering starting your own company, there are a lot of financial, legal and business questions you need to ask yourself. “How am I going to raise money? Who are my competitors? Are there patents on similar products?” I’m not going to focus on those types of questions here. I’m going to focus on the intangibles.

Here are nine questions that you need to ask yourself about your own capabilities and personality as an aspiring leader.

1How much responsibility can I take on?

You will be responsible for not only yourself and your business but everyone that has a vested interest in it. This includes employees and their families, investors, business partners, clients and the community in which you run your business.

It’s one thing to put your own fortune and reputation on the line; it’s another when you get other people and their livelihoods involved.

I am responsible every day to the BRIC Language Systems team in NYC, China, Brazil and Mexico – as well as every one of our language learners, interns and business partners. Being your own boss sounds nice, but you’ll realise quickly just how much weight your shoulders can hold. Make sure you know you can handle it, for your own sake and theirs.

Related: Start A Small Business, Become Self–Employed

2What am I willing to sacrifice in order to make this work?

There are tremendous sacrifices involved in starting up a business. Those sacrifices will include sleep, hobbies, exercise, relationships, vacations and your own personal freedom. A lot of these sacrifices are the result of realising who you’re responsible to (see above).

Be ready to sacrifice a lot in order to succeed and ask yourself if those sacrifices are worth the potential reward? More importantly, and more realistically, ask yourself if it would still be worth it if all of that sacrifice results in failure?

I lived in China for eight years. I sacrificed going to best friends weddings, the births of their children, my health, college football Saturdays and so much more. So far, it is well worth it, not only because BRIC is doing well, but even more so because of the experiences and friendships that developed out of my time there. If BRIC blew up tomorrow – which I don’t expect nor want – I can honestly say that it was worth it.

3Can I remain calm amid constant chaos?

calm-amongst-chaos

Batton down the hatches! You’ll be dealing with a storm of confused emotions and organisational chaos. How you relieve stress is incredibly important. Make sure that you have the mental fortitude to deal with an incredibly stressful environment and that you know how to decompress. Whether it’s exercise, meditation, yoga or whatever else – make sure that you know how to relieve stress.

During my time in Shanghai I took kungfu classes at Longwu Kungfu, tried Taichi, and ran the Bund in the mornings. This helped me get through an otherworldly amount of stress and chaos that only expats living in Shanghai will understand. No matter where you are, stress relief is one sacrifice you can’t afford to make.

Related: 5 Tips To Help Structure Your Entrepreneurial Lifestyle

4Can I make a decision under pressure?

When you start a company, you will be dealing with issues that you could have never imagined. You’re involved in every decision and every detail. This means everything from legal to hiring, accounting, marketing, sales, IT and design.

You need to be able to calmly, rationally and quickly assess a situation and act. You’ll need to be decisive.

As Brian Tracy says “decisiveness is a characteristic of high-performing men and women. Almost any decision is better than no decision at all”. Be able to make the decision, move on, and deal with the results. We all make bad decisions at some point, I know I’ve made a lot of them in getting BRIC up and running.

5Am I able to back down when I realise I’m wrong?

Leadership is as much about being able to accept when you’re wrong and listening to your team, as it is about being right. No one likes a boss who can’t admit when their wrong. If you’re leading the team in the wrong direction and people are pointing it out to you, as a leader you need to accept that fact and change course.

Being able to listen to your team and heed their advice is a hallmark of a good leader. I’ve been lucky in every leadership situation that I’ve been in to have either had a good team handed down to me or built a good team from the ground up. Those teams are why I’m where I’m at today.

6What are my own weaknesses?

Being self-aware isn’t a prerequisite for being a good leader, but it should be. You need to know how what you think, say and do are perceived by others. This is far different from being self-conscious.

Being self-aware allows you to understand others and effectively motivate, discipline and lead them. It’s recognising not only where you’re strong but also where you’re weak – and using that to build a team that compliments those weaknesses with strength.

Related: Do You Speak Start-up?

7Can I manage a diverse group of people?

diverse-working-environment

You are going to be responsible for putting a team together that will inevitably have different political, social and economic backgrounds. They will have different attitudes, personalities and viewpoints. These differences are to be celebrated, but they will also need to be managed and lead towards a common goal.

Can you, as a leader, bring your team together when they don’t see eye-to-eye and are at each other’s throats? It will happen, you need to be able to help them forward as a team. Sometimes these differences are impossible to overcome and change needs to happen.

8Can I let someone go, including someone close to me?

A lot of startups involve friends. Those friends may come from the neighbourhood, university or a previous job. Sometimes those friendships get in the way of good business judgement. If anyone, including a friend, is dragging down the business despite repeated attempts to motivate them and having given them a fair chance, they need to go. This is part of your responsibility to everyone on the team who is executing, as well as all of the others mentioned in no. 1 above.

I’ve had to let people go in all kinds of circumstances. Some of them were close to me. I’ve had people break down in tears, and I’ve broken down in tears myself, but we were able to have the conversation and get through it. It’s not easy, so ask yourself whether or not you can handle that type of situation?

9What are my reasons for starting this company?

Is it to make money, change the world, disrupt an industry, work for yourself, passion, pride? There are a lot of reasons people start companies. Make sure you know why you’re starting your company and that the reason is sound.

Be realistic if you’re setting out to change the world. Change doesn’t come easy. Make sure that change is wanted or necessary when trying to disrupt an industry.

Be self-motivated if you want to work for yourself, and make sure that passion and pride are both in check.

Once you’ve answered these nine questions, get ready for a whirlwind. You’ll feel extremes of every emotion from exhilaration to sorrow, success to failure, anxiety to serenity, doubt to certainty and anger to pleasure. You’ll feel many of those conflicting emotions at the same time and sometimes for the same reason. It’s a wild ride, and if you’re ready for it take the gloves off and come out swinging for the fences, it’s totally worth it.

Lastly, don’t overthink it. If you ask yourself too many questions, you’ll never get them answered and wind up never starting anything at all.

This article was originally posted here on Entrepreneur.com.

Ryan McMunn has 11 years of experience doing business in China. He is the founder and CEO at BRIC Language Systems, a leading online language-training firm. McMunn has been interviewed by Fox Business, CCTV-America and several other publications as well as spoken at conferences in Europe and across the U.S. on global entrepreneurship.

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Are You Suited to Entrepreneurship

(Podcast) Being An Entrepreneur Is Painful

There is a pain attached to running your own business. It’s time to discuss how tough it is – address the reality and you might just be one of the successful few.

Nicholas Haralambous

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Entrepreneurship is fun. But on the whole, running a business is hard. Far fewer business owners succeed than fail. Statistically your business is going to fail. Those are the hard numbers.

There is a pain attached to running your own business. It’s time to discuss how tough it is – address the reality and you might just be one of the successful few.

Listening time: 5 minutes

Related: (Podcast) Playing To An Audience Of One

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Are You Suited to Entrepreneurship

3 Dangerous Entrepreneurial Myths You Need To Ignore

This terrible advice won’t actually get you anywhere.

Entrepreneur

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Entrepreneurial Myths

We’ve all heard the numbers about how hard it is to build a long-lasting business. While there are many factors at play to get there, without effective marketing and sales a business cannot survive.

Unfortunately, there is a multitude of dangerous and destructive marketing advice swirling around the heads of vulnerable entrepreneurs. Like vultures seeking their next meal, “gurus” pontificate nonsense that these hard-working business owners follow, only to discover that what they tried doesn’t work.

Often, once the damage is done, it is too late for them to do anything else about it.

If you want to not only survive, but thrive, here is some of the terrible advice you need to start ignoring:

1“You need to be everywhere”

I’m sorry, but how do these people sleep at night without the use of narcotics? “Experts” spew out dribble to make headlines saying you need to get on Snapchat, get on Periscope, do YouTube Live … be everywhere! They’ll say you need to get on this platform or that social media network. Oh, and use LinkedIn Live! And make sure to post on Instagram three times a day and Facebook twice a day. And don’t forget those Facebook Lives. Make sure to do them every day.

Related: The Journey Of Entrepreneurship: How The Tough Get Going

ACK! Just writing that paragraph stressed me out. How the heck are you supposed to be on all of those channels, never mind doing it all effectively, and still run your business? Of course you can’t. And you shouldn’t. (Unless self-torture is your thing, in which case have at it. There are books about that, but I’m not giving any titles because I’d have to Google them and then I’d be retargeted by the ads and that would just be gross.)

It is impossible to spend even half an hour on each major network and still get any work done. Forget about focusing on measurement, profit and return on investment. They don’t mention that on purpose, because then these crazy-pants suggestions would really make no sense. But, then these “experts” would stop making the headlines, so they keep serving up spoiled advice for the poor folk who chow down and then get sick on it.

Don’t allow yourself to fall victim to their plots of deception. Demand strategies that value your time and produce results in a significant and measurable way quickly.

2“It takes money to make money”

cash-flow-management

I didn’t take the easy way out. I am part of a group of scrappy entrepreneurs who have a lot of hustle and heart and little/no/negative funds. I didn’t come from family money, and the big banks certainly weren’t lending to businesses like mine.

The only way I was going to get a big pile of cash was if I won the lottery. And since I’ve only played about four times in the last decade, the chances of that happening were slim. What I had to find was the same thing you most likely want – a solution to predictably bring in customers when there is no marketing budget to play with.

3The Schmo-bags

The worst are who I call the “Ferrari Marketers.” They rent a sportscar for an hour or two, hang out in front of it and then sell us shiny object strategies that they haven’t even used in their own business.

Related: 6 Timeless Strategies That Drive Successful Entrepreneurship

They are abhorrent, hideous and dangerous. Not only are they crooks stealing the money of the people who are seeking a solution from them, but they may prevent really talented people who have a gift/service/product/offer to share that can help someone else from ever reaching them.

Did I mention they suck?

But, once you discover a game-changing system, you are responsible for implementing it. You can’t be distracted by shiny objects any longer.

As Jack Welch says, “Good business leaders create a vision, articulate the vision, passionately own the vision and relentlessly drive it to completion.”

Don’t allow yourself to be enticed or distracted by fads or the “latest and greatest/not greatest” new social media strategy, channel or tactic.

Once you uncover how to truly get results, be strong-willed and stubborn. Repel any idea, strategy or initiative that requires you to keep spending money to make money. If you keep throwing dollars and time at a goal, hoping and wishing that it will work, yet not tracking or measuring the results and scaling accordingly, then you cannot expect results.

Start measuring, tracking and demanding results from your time and money, rising above others and landing in the successful minority that thrives instead of survives.

This article was originally posted here on Entrepreneur.com.

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Are You Suited to Entrepreneurship

5 Mindset Changes You Must Make When Going From Employee To Entrepreneur

As one prominent author wrote, “Entrepreneurs don’t finish when we are tired. We finish when we are done.”

Sujan Patel

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entrepreneurship-mindset

Thousands of people dream of the day they can quit their jobs and escape the 9-to-5 life. In fact, Gallup found that 87 percent of the employees it surveyed worldwide did not see themselves as engaged.

But quitting your job and starting your own business is only half the battle. You need to prepare to be an entrepreneur. Besides getting your finances in order and having a plan in place, you also need to prepare your mind.

Your habits dictate your success, and if you’re still stuck in that 9-to-5 mindset, your endeavors will fail. You must adopt an entrepreneurial mindset and start thinking the way the world’s top leaders do.

Being an entrepreneur is very different than being an employee, and the way you envision it may be completely off base. Here are five changes you must make to your thinking in order to prepare yourself for the realities of being an entrepreneur.

1Train your mind to think outside the box

Once you leave your office job, you’re no longer confined by corporate life. That means you need to open your mind to new possibilities – possibilities that may not have been an option in your old life.

Related: For Shatty Mashego Success Lies In Maintaining A Positive Mindset

In an article for TIME magazineWarren Buffett, CEO of Berkshire Hathaway, said, “People will always try to stop you doing the right thing if it is unconventional.” In short, others may not see your vision, but you can’t let that stop you. You need to be creative with your business, offer something new and be different to be successful.

2Develop both short-term and long-term vision

Albert Einstein once told the New York Times, “A new type of thinking is essential if mankind is to survive and move toward higher levels.”

That new type of thinking needs to be focused on a strategic goal. You must have a vision for your company – an idea of where you’re going and how you’ll get there.

As an entrepreneur, you are the leader of your company, and your team members are looking to you to show them the path to success.

What’s your plan? You should be able to see the big picture as well as all of the steps it will take to reach your main goal. Then, you must communicate that vision to those on your team and ensure they each understand their individual roles in the plan.

3Let it all fall on your shoulders

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Becoming an entrepreneur can be scary. Your success is now completely dependent on the work that you do. You can no longer fall back on a salary or benefits.

As an employee, if you had a bad day at work, you were still paid your salary, regardless. But as an entrepreneur, if your business isn’t successful, you won’t make any money. Plus, you now have others relying on you for their livelihood.

Ryan Farley is a typical example of corporate employee-turned-entrepreneur, quitting a fast-paced finance job to start lawn care marketplace LawnStarter Lawn Care. “I was used to working extremely long hours in the corporate finance world,” Farley told me. “I thought that would have conditioned me well, but nothing can prepare you for this amount of stress.

“It’s pretty common for founders to have the stress get so bad it affects your physical and mental health,” Farley continued. “But you have to press on, and you’re better off for it.” Prominent entrepreneurs like Brad Feld and Mark Suster, have expressed similar sentiments.

Working for yourself also means you need to be your own motivator. You no longer have a boss hounding you to get your work done. You need to stay organised and focused, and you’re going to have to be comfortable with hard work and long hours.

Related: 8 Mindsets That Will Set You On The Path To Success

4Get ready to be a jack of all trades

As an entrepreneur, you can’t say “That’s not my job.” Every job is your job now. There’s no one else to pick up the slack but you. You need to make sure everything in your business continues to run on track, and that may mean doing work you aren’t used to doing. You may need to be the accounting department, IT, marketing and more in addition to leading your company.

Entrepreneurs wear many different hats and are constantly learning new skills and working hard. If you think becoming an entrepreneur means you get to sit back and kick your feet up, you’d better stick to your day job.

As entrepreneur, author and investor Robert Kiyosaki has written on Twitter, “Entrepreneurs don’t finish when we are tired. We finish when we are done.”

5Be flexible, focused and positive

Attitude is everything in business. You can’t let challenges get in the way of your dream. Entrepreneurs need to be optimistic and stay focused on their goals. Your passion must drive you.

Related: An Entrepreneurial Mindset – Why And How To Develop One

As Steve Jobs once said in an interview with the Smithsonian Institution, “Unless you have a lot of passion about this, you’re not going to survive. You’re going to give it up. So, you’ve got to have an idea, or a problem or a wrong that you want to right that you’re passionate about; otherwise you’re not going to have the perseverance to stick it through. I think that’s half the battle right there.”

This article was originally posted here on Entrepreneur.com.

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