Article Contributed by Avinash Patil
The world needs entrepreneurs more than at any other time in the last century and an online business guru has come up with a way for would-be business owners to test whether they are likely to be a success or failure.
Guy Kingston, a serial entrepreneur who successfully started one of the first private enterprise businesses in post-communist Russia, says the motivation behind starting a business is often the key to success.
Mr Kingston, whose Mind Your Own Business podcast provides free help and advice to business owners said: “Every entrepreneur is driven by their dream of what they want to achieve through business. By asking themselves a few simple questions they can work out what their motivation is and from that you can pretty well work out whether they are likely to be a success or not.
“Many people are really dreamers, who like the idea of running a business but can’t cope with reality. The ones who will succeed are schemers, who will do everything they can to ensure success.”
Mr Kingston, whose website www.myobpod.com features free written, audio and video advice for entrepreneurs with no sponsors attached, sets out the following check-list for would-be entrepreneurs to test out whether they are a dreamer or a schemer.
See which statement applies to your thoughts then see whether this is a dream or a scheme.
“I want to build a business so that I can employ lots of people and be a big boss.”
Guy’s verdict: Dreamer: “if empire building is your main motivation you will probably fail.Costs need to be kept tight in a growing business and the regulatory environment surrounding employing people makes them very expensive. Operate with as few people as possible and the empire will grow.”
“I’m really confident in my idea and my ability to make it work, but there’s more to it than that.”
Guy’s verdict. Schemer: “Positive thinking alone is not enough. Whereas you won’t succeed without it, it is not sufficient alone.”
“Running my own business will mean I will be able to have greater flexibility and time for myself and my family”
Guy’s verdict: Dreamer: “You have more time if you are employed by someone else. Of course you have to get the balance right but don’t see being an entrepreneur as a passport to more spare time.”
“I know I have skills that my employer doesn’t appreciate and I want to sell them direct to people”
Guy’s verdict: Schemer “Often the core of a good business comes from an individual’s talents. Just make sure that it is more than your nearest and dearest who think you are good.”
“I have certain abilities but if my business is really going to take off I’ll need to pick quite a few other people’s brains to bridge the gap.”
Guy’s verdict: Schemer: “The best entrepreneurs beg, steal and borrow ideas from everyone and then adjust them to their own situation. They also recognise early on that they aren’t good at everything.”
“I have inherited some money and I think the best way to use it is to buy a business that I can run.”
Guy’s verdict: dreamer “Buying a business is about a lot more than just having the money. Many successful businesses have disappeared very quickly once under new ownership.”
“My partner / best friend and I get on so well that we would be awesome in business together and we are going to come up with something between us that we can do together”
Guy’s verdict: dreamer “Running a business together puts a great strain on any relationship. Although it works well for many people there has to be more to substantiate going into business together than the fact you are great buddies or soul mates!”
“I want a mentor who’s been round the block a few times.”
Guy’s verdict. Schemer: “Just as you wouldn’t want a brain surgeon who’s never done brain surgery before, you don’t want a business advisor who hasn’t run a business of their own. Experience trumps qualifications and theories any day.”
“Everyone likes the items I produce as part of my hobby so I am going to pack in my job and do it commercially.”
Guy’s verdict. Dreamer: “Hobbies rarely turn into good viable businesses. Before making the leap it is important to check out every aspect of the business model.”
“Business is fairly simple. You just buy things in and then sell them at a cheaper price. That is the basis of my plan for trading”
Guy’s verdict. Dreamer: “This is someone who needs to do a lot more planning on things like stock levels and what the market will stand before venturing into being an entrepreneur.”
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