Many people dream of starting their own businesses, but not everyone is cut out for this line of work. Being employed by someone else offers a slew of advantages, from health insurance and matching retirement contributions to a regular schedule and the company of coworkers.
Entrepreneurs: Nature or Nurture?
Are good leaders made or are they born? No one knows for sure, but successful entrepreneurs tend to share these traits:
Discipline
To be successfully self-employed, you'll need to have the discipline to set work hours, meet deadlines, pursue new clients and avoid tempting distractions like your TV.
Frugality
To prevent yourself from going broke when your business is new or times are slow, you must be willing to cut back - sometimes way back - on your spending. Remaining self-employed has to be a top priority above buying new clothes or other niceties. It's a good idea to be frugal not just in slow months but in the good ones as well to give yourself a well-padded savings account that can tide you over when your business isn't generating income. (For tips on cutting back, read Save Money The Scottish Way.)
Self-Confidence
In order to successfully sell yourself to others, you have to be your own biggest fan. If you don't believe you're one of the best at what you do, no one else will either. Business will rarely just fall into your lap, so you'll need to be willing to promote yourself and ask for work whenever and wherever possible.
Good Communication Skills
Clients won't always make their expectations crystal clear. Rather than guessing what they want, you must not be afraid to ask lots of questions. It's also a good idea to ask for feedback during and after assignments to make sure you're meeting your clients' expectations.
Humility
Few clients will expect you to be perfect, but if you can't fess up and apologize when you make a mistake, you'll get crossed off their lists. (This trait applies to investors too. Read Seven Common Investor Mistakes to learn more.)
Honesty and Integrity
When you're self employed, your reputation is crucial. You don't have the image of a company to fall back on or make up for the occasional bad employee. You are the company and you are the employee; as such, everything you do needs to reflect well on your business.
Superb Record-keeping Skills
It's very important to know when you sent out invoices, when you were paid, who still owes you money, how much money your business has, how much you have made and how much you need to make. Detailed, accurate records are critical to the financial health of your business and are indispensable for tax purposes. (To learn more, read Six Steps To A Better Business Budget.)
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