Is Entrepreneurship Right for You?

Pointing out that starting a business is in some ways like becoming a parent, an article in today's Wall Street Journal poses five questions that an individual should ask before starting a business.

The article, "How to Decide If Entrepreneurship is Right for You," by Colleen Debaise, points to the following five questions:

Am I passionate about my product or service? Because your enthusiasm for you product or service typically makes the difference in making the sale and building the business, "it's unwise to start down the path of entrepreneurship unless you've got a zeal that will get you through the rough patches and keep you interested long after the initial enthusiasm has faded."

What is my tolerance for risk? "Nothing about starting a business is for the faint of heart," the article states."...There's no guarantee of success or even a steady paycheck. If you're risk-averse, entrepreneurship probably isn't the right path for you."

Am I good at making decisions? "No one else is going to make them for you when you own your own business...Decision-making only gets more complicated as time goes on, once you have employees or clients depending on you...The choices you make can lead to success or downfall, so you must feel confident in your ability to make the right call."

Am I willing to take on numerous responsibilities? "Solo entrepreneurs in particular must be versatile and play a number of roles...If juggling many roles doesn't suit you, entrepreneurship probably won't either."

Will I be able to avoid burnout? "Working seven days a week, losing touch with friends, abandoning old hobbies and interests, and not making time for loved ones can quickly lead to burnout in the midst of starting up--and ultimately to business failure." The article gives a specific example of total burnout. With this particular entrepreneur working on his second startup, he has embarked on a better work/life balance, including not working on Sundays, making time for hobbies, and building close ties with other business owners through a faith-based support network.

"Take some time to mull over these questions, do some soul-searching, and then if you think you have what it takes, go for it," the article advises.

Good advice!

This article was adapted from a forthcoming book, "The Wall Street Journal Complete Small Business Guidebook," (Three Rivers Press, scheduled for publication December 29, 2009).