As of 2016, there were 2.17 million actively trading businesses in Australia, but in June 2016, there was an exit rate of 12.3%.
The rate has lowered from previous years, but many business owners see the need to close up shop each year. How can you stop yourself from becoming a part of that statistic? How can you know that you’re suited to owning a business?
There are a lot of resources needed to own and successfully run a business, money, time and manpower included.
However, much of what is needed to own a business lies within your personality and skills.
Are you a natural-born leader?
Leadership skills can be taught, so there’s no need to worry if you haven’t had the experience of being a leader just yet but those with leaderships skills are often the most successful when it comes to owning a business.
Within your business, there will come times when decisions need to be made – often difficult and impossible decisions – and as the leader and owner of the business, it will fall to you to have the final call.
Businesses need a decision maker at the helm, so if you’re likely to shy away from hard choices, it might not be wise to own a business.
One of the biggest perks of owning your own business is getting to decide your own hours, rules, deadlines and the direction of the business.
This requires a large amount of discipline.
A business owner should have discipline and should be willing and able to delegate to others when they can, in order to put the needs of the business first.
Do you like a challenge?
Business ownership comes with a lot of advantages as well as a unique set of challenges.
As the owner, you won’t always be able to sit at a distance and more often than not, you will find yourself in the thick of things.
Be willing to get your hands dirty, everyday.
Ownership can be hectic and chaotic at times, but the great thing about the hands-on nature of owning a business is that you can really take pride in the work that you do and the services your business provides.
Do you like getting involved?
Business owners are in a unique position where they often find themselves at liberty to get to know their clients on a personal level.
As an owner, you also have the opportunity to decide how involved your business is with the local community.
Whether you’re interested in increasing your profitability or simply just giving back to the community that supports you, getting involved with the local community has endless benefits and as a business owner you are in a fantastic position to get involved with the community and it’s an opportunity that shouldn’t be ignored.
Do you want to be excited to go to work?
Most business owners have made a conscious decision to step into this position and have a genuine passion for the services the business provides.
This passion means that it is easy to come to work and get the day started.
Excitement like this translates easily to any employees you may have on your team and it will become obvious to your clients that you all really believe in what you are doing.
A great attitude is essential for business owners and without one; the business may not flourish in the way that you had hoped.
Business ownership is not something to be entered into lightly; at the end of the day, a lot of what will decide the fate of your business will be the amount of effort you put in.
If you’re not willing to go the extra mile or really put work into the business, it may just become one of the 12.3% who find it difficult to survive each year.
Once you’re convinced that business ownership is the right path for you, it’s time to consider what kind of business you would like to be in charge of.
Remember, passion is key – so find out more about how you can choose the industry right for you.