Getting Down to Business: Have You Got What It Takes?

So, you’ve got the itch. Visions of financial independence, being your own boss, and doing something more fulfilling have got you thinking about going into business for yourself.

You’re not alone.

In 2012, nearly 61,000 Minnesotans launched startups, a stunning increase of 18 percent from the prior year and the second-highest number of new business filings in state history, according to the Minnesota Secretary of State’s office.

While last year’s upswing is remarkable (and can be explained in part by a tight job market), it is consistent with an overall trend toward entrepreneurship. Startups, mostly small businesses, have been rising steadily for the past two decades in Minnesota. In any given year, tens of thousands of people dive headlong into business for themselves.

Before You Leap …

But should you take the plunge? Some things to think about before you do:

The first step is to decide whether you really have the right stuff to be a successful entrepreneur. We’re talking the right skills, the right training and the necessary commitment.

The U.S. Small Business Administration has identified some basic characteristics commonly shared by successful small business owners. See how you stack up.

You may be ready to be an entrepreneur and start your own busininess if …

• You like a challenge and are comfortable taking risks. There are no guarantees in business. The financial risks are considerable and the shadow of failure can loom large for the first few years.  Does that uncertainty terrify you? Thrill you? Your ability to endure and manage through the uncertainties of business is crucial.
• You can make tough decisions with confidence. Do you trust your own instincts? You have to be willing to think and act independently.
• You’ve got lots of good ideas. You have an eye for spotting and capitalizing on new opportunities or solving old problems in a new way.
• You’re outgoing and persuasive.  Convincing customers to use your products or services is important, but it’s just the beginning. Are you comfortable selling yourself to lenders and potential partners? Can you motivate employees?
• You dig the art of the deal. Negotiation is a way of life for small business owners. Leases. Credit with suppliers. Contract terms. Interest rates.  Salaries. You’re going to have to tackle them all with an eye on protecting the bottom line.

Get The Right Guidance

Having ready access to business expertise and sound advice is essential as you’re making crucial decisions about whether or how to start your own business. Every year thousands of people launch startups with little or no expert guidance. And many face serious – and needless – setbacks and failure because of it.

Fortunately, there’s no need to share their fate. There are many excellent resources available for people starting a business in Minnesota. Many consulting services are free of charge or are offered extraordinarily low cost.

The Small Business Assistance Office at DEED is the best place to start. And our network of Small Business Development Centers has experts located in nine main regional offices and several satellite centers statewide. SCORE provides volunteer mentors (who are seasoned business executives) and other services at seven offices throughout Minnesota.

For a comprehensive look at everything you should consider before you dive in, our Guide to Starting a Business in Minnesota is a must read. Available for download in PDF, formatted for e-readers, or available in print or on CD (all free of charge), the book covers the major issues, questions and concerns about business startups.

Business to Business

Patricia Caldwell, owner of Patricia’s Alterations and Tailoring in St. Paul, talks about why she started her own business and offers her advice to would-be entrepreneurs on what it takes to be successful.