Are You The Right Kind Of Person To Start a Business?

Starting A Business

If someone told me that they wanted to start their own business then I would say go for it. I am the type of person who will always tell someone to follow their dreams. I believe it would be a horrible feeling having regrets later in life wondering what you could have done if you had followed your dreams.

However, people also need to be realistic about it before they start up. Here is a short checklist to determine whether you are the right type of person to start a business.

Do you need money right now?

If you are looking to start your own business to make money quickly, you are making a big mistake. In most cases you will be making less money for the first few years than you would have working for “the man”. To those people who are working as employees for someone else, the idea of earning $70 an hour is quite attractive to them. However, they don’t understand that they don’t get to pocket all of that money. That money needs to be put towards advertising, petrol, rent, accountants, tax and other business related expenses. You never really earn $70 an hour.

Can you manage money?

If you are constantly finding yourself low on money when you need it, it is not a good idea for you to go into business. Managing your money isn’t “just one of those things” you do in business, it is what business is all about. For every week that you earn money, you need to put a large part of it away for advertising and expenses including keeping a decent amount of money as usable funds so you can buy stock for the next week. If you cant stop yourself from treating yourself to that brand new 60 inch plasma screen with these funds because “you deserve it”, just stop now.

Is working on computer all you want to do?

A common mistake that beginners make is starting their businesses expecting that they can work on computers all day without all the office politics and meetings they had with their 9-5 jobs. These people need to keep in mind that being self employed often means less time doing computer work because now you have to do tasks that would have usually been done by the secretary, the marketing department or the accounting department at your last job.

Do you have a entitlement mentality?

One of the big differences between employees working for someone else and self employed business people is the “entitlement mentality”. Employees have the mentality that they are entitled to sick pay, holiday pay, overtime pay and even getting a raise if they deserve it. Their boss will look after all of it for you and put money away for their superannuation and maybe even cover some sort of health care plan which they are entitled to later in life.

When you are self employed, its all you. You are not entitled to anything. If you have to work late chances are you are probably not going to get paid any more. The self employed business owners also need to put money away during their good days so they have something to live off if they fall sick or go on holidays. No one else is going to do that for you. Getting out of this “I deserve” mentality will give you a great advantage in business.

Do you think you are the right kind of person to start a business? Do you know of anyone who has fallen into these traps?

Bryce Whitty

About the Author

Bryce Whitty
More articles by me...
Bryce is an Australian computer technician and the founder of Technibble. He started his computer repair business when he was 17 years old and is still running it 9 years later. He is an avid traveller and spends at least a month of the year in another country.

Comments (13)

  • InterNet Age says:

    Hi Bryce

    If anyone wants to start a business then they must do it as you will only learn once you do it. Over the years I have had many partners of which most know for companies. Owning a business has its pros and cons, we work 8-8, we never stop working. All that I would say to someone who wants to own their own business is, is this what you “love” as it will become your life. I love what I do and it makes it a whole lot easier.

    Try it out and see what happens, and you can start it part time.

  • gunslinger says:

    I agree, you have to love what you do. Sometimes I’ll work for 20 hours , or forget to eat for a day or two.

  • Anton says:

    Not long ago I wanted to start my own online business but after I read this post I have doubts about this.

  • Phishie says:

    This is very true but I think you should have also added that you must love whatever it is you plan on doing for a business because it will consume your life.

    You are the guy doing the work. You are the guy designing and placing ads. You are the guy managing the money. You are the guy keeping track of expenses and income. You are the guy keeping addresses and marketing yourself to your customers. You are the guy going to the business meetings to increase and improve your network. You are the guy. Are you ready to be the guy?

  • Phoenix says:

    You are very right! We have to dig deeper to see if we have what it takes to put up a business and the list mentioned above just go longer and longer as we proceed. Putting up a business is no joke and when it comes to making money, serious is the name of the game.

  • Beth says:

    Starting your own business definitely isn’t something to leap into. You’ve got to really think about it and be realistic about whether you can succeed or not. I heard something on TV this morning about how being laid off gives some people the push they need to finally start their own business. And hopefully it works out for those who are already down on luck!

  • I had a dream to open cyber cafe. But some forum that I had join discuss about the negative of business. So I need to do more research about it.

  • Abby says:

    I prefer to start a business which does not need big capital as lending money from bank has some risk. Selling skill business, such as writing needs less capital.

  • Wii says:

    My day job involves helping people through the crisis of failed businesses. I may be best placed to see the pitfalls but am happy to stick to being employed!

  • Phil Benwell says:

    I’m not great on the personal finance side of things but think I could change that around when it came to my business. A few more skills and I might just make the jump.

  • Greg H says:

    Few things run through my mind regarding your own business.

    1) No one knows your skills better than you.
    2) You don’t know, if you don’t try.
    3) You may be sacrificing in the beginning making ends meet, but if you build a relationship with your clients, you are trustworthy, get the job done and give your clients piece of mind, success is just around the corner.

    I’ll be putting my plan a try starting sometime in March 2009 (once the remodeling of the place is complete.)

    If your looking for piece of mind, in the area of computing, I provide computer consulting, free software, piece of mind and security.

    Visit Hamen Network for more information.

  • JK says:

    I started my computer repair business in my home which cut down on business expenses greatly. I also decided to find other ways of advertising by striking up relationships with local business owners by fixing their computers in exchange for advertising in their stores. I might not have a fancy store but i can offer repairs for less than half the price, that brings more costumers than you may think. Just remember you dont have to follow the textbook in order to have a successful business. I believe the main thing is offering something your competitors do not. Finances should not be that big of deal if you cant use peachtree than you probably should not start a business.

  • Vincent says:

    Greg H,
    I visited your site..

    There is NOTHING there that would entice me to send clients your way.

    You even have incorrect/misleading information on your 101 computer rules page.