Requirements For Success

 

Deciding to start your own business is unlike applying for a job in one very important respect. While selection for a job usually depends on filling in an application form and attending for interview, no-one else chooses you for self-employment – you must decide for yourself whether you are suitable. Just as it is important to look at your reasons for starting a business, therefore, it is important to examine the qualities and skills you possess personally. These are not simply the specific product- or service-related skills needed for the business you intend to start (essential though these of course are). Rather, they are the general skills and qualities everyone starting in business must have.

So what are the personal qualities you need to succeed in business? Here are the answers some businessmen and women gave themselves.

 

By far the biggest quality is determination. If things don’t go right at first, you have to keep on. Everyone’s allowed to make a few mistakes. The main thing is not to be put off when you hit snags.

Eric Lunn, Director, Hinges & Things

 

Always remember that failure is merely a stepping stone to success. When things go wrong (and they will!), pick yourself up, dust yourself down, and start again. You’ve learned what doesn’t work. Now try it a different way. Don’t resist failure: it’s essential to being brilliant in business. He who never fails, never wins!

Karl Moore, Managing Director, White Cliff Computing Ltd www.karlmoore.com

 

You have to commit yourself to it. If you see an opportunity, however small, you must pursue it relentlessly. If you go into business half- heartedly or with your fingers crossed behind your back, then you’re likely to fail.

Mr F.M. Dawson, Proprietor, Framada Materials Handling

 

You have to be dedicated, maybe even a bit obsessed! Bags of energy and enthusiasm to get you through the difficult times, which there will be. And, in my line anyway, if helps if you like people and get on with them.

Frances Look, freelance photographer

 

You need determination, to work long hours – especially at the start, and never give up. Don’t let disappointments deter you or affect your morale. But the rewards make all the effort worth it.

Anthony Todd, Managing Director, East Cheshire Printers

 

A need to provide a high level of service and to understand customer requirements and explore ways of serving their needs in a most cost effective manner.

Mary Lees, Director, Sawyers Packaging

 

As these quotes reveal, everyone has different views on which qualities are the most important for success in business, but there are certain requirements that come up time and time again.

 

(1) Determination

Many people talk about starting a business, but only a small proportion do anything about it. Starting a business is a major decision that will change your life and that of your family. It is important that you are committed to your new career before making such a move; and that once you have started the business you are determined to see it through to success.

 

(2) Willingness to Work

We all think we are willing to work hard, but if you start a business you will soon find out what this means in practice! In the early days at least you are likely to have to work longer hours than the average employee. Although as your business becomes established some of the pressure may ease, you must still expect to work longer and harder than most people in paid employment.

 

(3) Persistence and Perseverance

Successful business people let nothing get in the way of achieving their goals. If they encounter problems, they try to find ways to overcome them. If their first attempt does not succeed, they try a different approach; and, if this doesn’t work, another. They are not put off by pitfalls, or discouraged – other than temporarily – by failure. They persevere in their efforts until, eventually, they do succeed.

 

(4) Stamina

In view of the hours you are likely to have to put in, stamina and at least reasonably good health are important. People running businesses have to avoid taking time off for sickness if at all possible. As a self-employed sole trader in particular, if you are not working you are not generating any income. And if you let down a customer, next time he is likely to go elsewhere.

(5) Self-discipline

If you are in a paid job the chances are you will have a manager or supervisor, part of whose duty is to ensure that you fulfil your obligations to your employer. Your reasons for wishing to start a business may include escaping from such individuals! However, while as a business owner you will have no-one standing watch over you, you will still have obligations to customers, suppliers, employees, officials, and so on. If your business is to go on running successfully, it is important that you have the self-discipline to fulfil all your responsibilities and see a job through to the end.

 

(6) Willingness to Take Risks

All business people have to take calculated risks. Whereas in a job you have the relative security of a regular wage or salary, as a self-employed person there is no guarantee what your income will be from one month to the next. You will constantly find yourself having to make decisions about where and how to advertise, which areas to specialise in, when to invest in new equipment, and so on. Although this constant decision-making can be stressful, it can also be satisfying and enjoyable. Solving problems and making decisions can give you a sense of power and confidence.

 

(7) Ability to Cope with Stress

Starting and running a business inevitably imposes a range of stresses, both on the businessman himself and on his family. In the beginning at least, long hours, hard work and disruption to family life can cause tension. To be successful in business you need to be able to cope with, and even thrive on, this kind of pressure.

 

(8) Enthusiasm

Enthusiasm is an essential ingredient of every businessman. If you are half- hearted about your new venture you may have difficulty summoning sufficient determination to overcome problems when they arise. If you are enthusiastic, on the other hand, you will relish the challenges your business presents. What’s more, your enthusiasm will rub off onto customers, employees (if you have them) and other people you have to deal with. Most of us would far rather work with or buy from someone who is enthusiastic and enjoys his work, rather than someone who is permanently depressed about it.

 

(9) Ambition

Most business people have a driving ambition to achieve the best they can for themselves and their loved ones: as well as money, this may include financial security and a better way of life. With such ambitions they can cope with any setbacks along the way, because in their mind they have a goal or vision that drives them on. Ambition and determination together can overcome many obstacles. In business, as in most others aspects of life, if you know what you want and are determined to achieve it, the chances are excellent that you will succeed.

 

(10) Honesty and Willingness to Give Good Service

Every business depends for its continuing survival on a circle of satisfied customers. If people are pleased with the service they have received from you, they are likely to recommend you to others as well as keep coming back themselves. By contrast, if you give poor service then, even if they do not complain at the time, they will not return; and rather than recommend you to others, they will warn them about you. If you have a good reputation this will ensure that more people keep coming to you. For this reason, successful business people go to great lengths to obtain and keep a good name for themselves.

 

EXERCISE

To help assess whether you have the necessary personal qualities for starting and running your own business, complete the checklist below. Circle or underline the description which best describes you.

 

 

Now score your responses, giving four points for an answer in column (1), three points for an answer in column (2), two points for an answer in column (3) and one point for an answer in column (4).

If your total is 70 or more, you appear to have the required personal qualities to make a success of starting and running your own business.

If you scored 60–70, you have most of the qualities, but may need to work on certain aspects of your temperament and personality.

If you scored 45–60, you should be able to make a success of starting and running a business, but some areas will definitely need attention.

If you scored 45 or less, you may need to think hard about whether you have the right personal qualities for self-employment.

 

This exercise should give you some idea as to how well suited you are personally to self-employment. However, people are not always as honest as they could be in assessing their strengths and weaknesses, and sometimes they have an unrealistic view of themselves. It is therefore not a bad idea to copy the above questionnaire and ask your partner, close friend or a relative who knows you well to complete it on your behalf. Compare the answers they provide for you with the answers you gave yourself. Where there are differences, or you disagree with the answer they have given, ask them (in a non-confrontational manner) why they responded that way. Explain that you are not criticising them or the way they completed the task, but simply want to understand your own strengths and weaknesses better.

On the other hand, if the total score given by your partner, friend or relative comes out significantly higher than the score you gave yourself, you may be under-estimating yourself. This may be an encouraging sign that you should have more confidence in your abilities and aptitude for starting and running a business. But do check with the person concerned that they gave honest answers and were not simply trying to please or flatter you!

 

Friends and Family

Just as it is important to have the right personal qualities yourself, you will also need a supportive family and friends. If you decide to start your business from home, this will inevitably cause changes and disruption in the family routine. Even if you use separate business premises, your friends and family will still have to come to terms with your working long hours and having less time and energy for leisure activities. If you are married or living together, it is especially important that your partner understands the implications of your setting up in business, and supports what you are trying to do.

There is also a positive side, of course. Your family may be a valuable source of help in all sorts of areas, from answering the phone and writing letters, to book-keeping and assisting customers. Having others closely involved with the business can assist when problems arise, as they will bring different ideas and perspectives to the situation. Although it is not absolutely essential to have a supportive family, there is no doubt that you are much more likely to succeed if you have discussed your plans with them and have their wholehearted support.

 

Checklist

Complete this simple checklist, underlining the answer which applies.

 

 

The more of the above you can answer ‘yes’ to, the better your chances of success are likely to be.

 

Your Skills

To run your business successfully, as well as the right personal qualities and a supportive family and friends, you will need a range of skills. These are described in general terms below. If you lack any of these it does not necessarily mean that you should not set up in business. However, if you feel any of these areas is going to present serious problems, you may need to consider taking on a partner or employee to handle that aspect of the business, or using a specialist adviser or consultant. You might also consider taking other courses to acquire the skills you need.

 

(1) Technical Skills

These are the skills that you need to actually make the products or deliver the service you are offering. For some types of business you will need to have relevant experience (probably gained as an employee) and perhaps some professional qualifications. For instance, no-one today would set up as a car mechanic without at least some relevant training and experience. On the other hand, for other types of business, for example commission selling or odd-jobbing, specific qualifications and experience may not be essential. Whatever your business, however, if you expect people to pay you for your work, you will need to have the necessary technical skills to deliver a good quality product or service.

 

(2) Financial

To run a business successfully you will need a range of financial skills. These include skills in such matters as book-keeping, negotiating credit terms with suppliers, invoicing, credit control, estimating, drawing up budgets and controlling cash flow (the flow of money into and out of the business).

 

(3) Marketing

Marketing is the process by which you identify potential customers and persuade them to buy your products or services. It includes selling skills, and also such matters as pricing, advertising, sales promotions, public relations, and market research.

 

(4) Management

If you are going to employ others, you will need a variety of management skills in such areas as recruitment, motivating staff and team building. You will need a knowledge of employment law and health and safety requirements. You will also need to be able to fulfil legal requirements in matters such as deducting tax from employees’ pay.

 

(5) Organisation

Whether or not you intend to employ others, you will need organisational skills to ensure that every aspect of your business runs smoothly. This includes setting up systems for dealing with orders and enquiries, keeping customer records, and so on. It also includes time management, i.e. ensuring that your time is used as efficiently as possible.

 

(6) Planning

Every businessman also needs planning skills. Good financial planning is crucial to the success of a business. Planning skills are also needed to take best advantage of new opportunities that may present themselves, and to avoid any problems due to changing market conditions. Good planning can avert many problems before they happen.

Many of these skills can be acquired through taking courses, reading books (including this one!), talking to professional advisers, and so on. They will also develop naturally with practice and experience once your business is up and running. However, if you are to succeed in running a business of your own, the above are the most important skills you will need to master.