How to use your excitement to build momentum

Episode 5

Excitement and momentum on the path to business ownership

The excitement of owning a business needs to turn into momentum if you want to decide if owning a business is for you. To turn your excitement into momentum you add some targeted personal preparation.

Our Should I Own A Business equation is

EXCITEMENT + PREPARATION = MOMENTUM. 

It’s essential to positively use your excitement at this stage, as it’s giving you plenty of enthusiasm and energy. Your excitement is likely to decline in time. So please make the most of it while it’s strong before other things push it down your to-do list.

How excited are you about owning a business?

Have you noticed that excitement abounds when you think about starting a business? Buying a business, a franchise or starting a business can be a very exciting time in your life. The prospect of owning a successful business can mean great things such as-

  • Having no boss to answer to.
  • Taking holidays, a couple of times a year to somewhere overseas.
  • Have flexible working time around my lifestyle.
  • Use tax benefits to buy a new car.
  • Get people to work for me and earn me money.
  • Becoming much more affluent
  • Being happy
  • You think this “could well be the best thing I ever did”.

Unless you harness this excitement and turn it into momentum, these things may be a pipedream. But, on the other hand, you should be excited and enthusiastic about your idea. There’s nothing wrong with that at all. 

If you are not excited at this point, then potentially, it’s not right for you. However, this is probably a special time where you experience very high degrees of excitement about the future as a business owner.

What do we mean by your excitement and momentum?

You can harness that excitement and positive energy into momentum that will help you decide whether owning a business is right for you.

If you don’t get some momentum, you may well get excited and find out that nothing much else happens. Until you get your next business idea, and then you get all excited again. But, unfortunately, the entrepreneur inside keeps nagging at you to get out, and another year drifts by.

So what is momentum, and what we mean by it? 

Momentum is the force or speed of an object in motion. 

Now, let’s think about taking your excitement about a business idea and push that idea along. So that you can decide if owning a business is right for you and perhaps whether this particular idea is as good as you think it is. 

How can we get this moving along?

Your personal preparation is a key to making a decision.

Let’s point out why we say YOU and your preparation is so important. In smaller businesses, you are an integral part of the business and its very difficult to separate yourself from it. You need to understand what business ownership is like and if you have what it takes to succeed. Your business is not likely to succeed if you are not happy owning it as business ownership is full-on.

We have met plenty of owners who, given their time again, would not start their business.

We believe that too much emphasis is on the business idea. Not enough attention is on the life as an owner and whether they have enough knowledge, skills, and the disposition needed.

This is why we emphasise YOU and Your Preparation.

What is the purpose of my personal preparation?

Preparation is about equipping yourself with enough knowledge, too:

There are no guarantees in business, and this is the first thing you have to understand. 

Some risks are simply out of your control, and therefore, they can be tough to predict or mitigate. 

So, the “smart money” is knowing the risks you can control and preparing to handle them. Many new entrepreneurs are not aware of the hidden risks of business failure and therefore have significant issues-some of them catastrophic. 

Starting any business is a risk, and the more you can understand those risks and balance them against the opportunity you see, the stronger the position you are in.

When we use the term “new entrepreneur”, we mean someone new to business ownership, whether they buy an existing business, a franchise or start a business from scratch.

To avoid becoming another failure statistic, you need to turn positive energy and thinking into reality.

Do you have a business owner mindset?

Probably the most critical self-preparation is around your mindset so that you can look at owning a business in a balanced and objective way. It would be best if you spent time understanding the things that will enhance your chances of success and those traits that might work against you.

Heres a great episode about the difference between a business owner and employee mindset.

You also need to comfortable with the fact that you will be a Leader and that you will be responsible for everything that your business does-good and bad.

Being a Leader can be challenging even in small business. Part of your preparation is to understand what is expected of you and whether or not you like it.

Many books written on management thinking are focused on large businesses.

SMB’s are not corporations, and their success depends upon capable Owner-Leaders who are also effective General Managers.

You need to understand that developing your knowledge is vital as it will enable you to make better decisions.

Here’s five preparation areas to focus your excitement to get momentum

1 Build a Personal Resilience Plan

The one characteristic that stands out about successful business owners is their resilience.

They can absorb stress, setbacks, defeats and challenges and keep bouncing back.

We suggest that you start with planning how you will build and maximise your resilience.

Running a business can be very demanding, physically and mentally. Unless you look after yourself, it can take its toll on you. Therefore, your resilience plan needs to include both physical and mental preparation. The purpose of getting into business is to improve your life in some way and to become ill, rather defeats the object.

You also need to be at your best performance to make right, timely decisions and exhibit a calm, consistent leadership style. If you are suffering physically or mentally, then your performance will suffer.

Staying healthy and your wellbeing are not nice to have; they are essential.

2 Build your business knowledge

New entrepreneurs often lack business knowledge and learn through trial and error, which is time-consuming and costly. Some fail before they work it out. Don’t be one of them.

Look out for what will make you and your business successful. But please be very careful where you access your advice and knowledge. Never before has it been so easy to obtain information from the internet. But, unfortunately, a lot of it is BS designed to enrich the presenter.  

Perhaps find a mentor with business knowledge and experience that is willing to help you. 

Talk to business owners and ask about their challenges. 

Research your business idea, the market size, competitors, prices etc. Then, become an expert so that your expectations are realistic and see where the opportunities are in the market.

Opportunities are all around us, but you need enough knowledge to spot them and then work out how your business can use the opportunity.

If you are thinking of buying a franchise, then understand how the franchising industry works. 

Franchising, in general, has its risks and benefits that you need to understanding to evaluate a specific opportunity. It is tempting to believe that buying a franchise is low risk, but this is not the case. Read this blog for an interesting insight into buying a franchise.

If you are thinking of buying a business, then understand the process and who can help you. Have a good knowledge of what you are getting into and how you think you can make it successful.

3 What does Personal Development mean for a new small business owner?

Begin to embrace the transformation from being an employee and into a business owner with a different mindset. 

Being a successful business owner demands certain traits:

  • You will accept responsibility for everything on a 24 x7 basis.
  • You must be resourceful and creative at finding solutions to the challenges you will face.
  • Be prepared to consider risks and opportunities. 
  • Accept your role to lead change and not keep the status quo.
  • Try to be a confident and positive self-motivator.
  • Dedicate some time to your learning and personal development. 
  • Consider how you want the business culture.
  • A stagnant person will have a stagnant business, and therefore, have an open mind and be prepared to change your beliefs.

4 A business owner needs to be 100% committed.

Getting into business is life changing-hopefully for the better. 

Your business will make demands on you, your relationships and your finances.

You cannot walk away from issues as you must find the solutions.

Business owners have to be self-motivators with a “never give up” attitude. 

 So, lukewarm passion doesn’t work.

What will keep you motivated when things aren’t going to plan?

Think about the time and money input you will commit.

There will come the point when evaluating your idea that you will only move forward by putting in the time and money.

What quantum of money are you willing to invest?

How will you get it, and how will you feel if you lose it?

How much time are you willing to commit, and how will you find the time?

Many people have great ideas about new products.

Let’s say your great idea needs patent protection, industrial designers, prototypes, testing and investors. Are you willing to invest $ 10’s of,000 dollars just to get to that stage, or are you dreaming about it and would never risk this amount of money? 

5 What makes business owners uncomfortable?

Business life will challenge you, and new entrepreneurs are sometimes surprised by how uncomfortable this can be.

Your comfort zones will get challenged frequently. For example, you might be uncomfortable meeting people or being your sales ambassador, but you still have to do it and do it well.

Are you more the extrovert or introvert?

Extroverts are comfortable in the sales and marketing areas. They can confidently talk to strangers at networking events or engage with people through cold calls. They deal with rejection like “water off a duck’s back.”

More introverted types find this very uncomfortable and often avoid these situations. Rejection and being in these situations can be very stressful for some people.

If your business will rely on you as the primary person to get sales- how do you feel about rejection?

How well do you deal with confrontation and conflict resolution?

Another common area is confrontation and conflict, which are inevitable. Dealing with employees who take too much time off or regularly make mistakes is not uncommon. Customers who complain-sometimes, quite unfairly and refuse to pay need handling.

How well do you handle conflict?

Procrastination can be a business killer. See our blog “Avoid Procrastination and improve your decision making” for great tips. Making decisions is a daily event and something must feel comfortable doing.

Can you come up with a strategy and the tactics to implement it?

“Big picture” people who can’t do detail or vice versa is another common occurrence. Both aspects are crucial, but one without the other can hamper a business. Living in either extreme won’t help unless you can have some balance in your business. Its Strategy AND Tactics, not Strategy OR Tactics.

Check out our episode covering the Fundamental Four in Business Checklist

Preparing to own a business is about you, not just your idea.

You can see that these five aspects have nothing to do with which business you may own as they are all about the owner.

We suggest that you consider which ones from this list apply to you need to improve and do preparation work while your excitement is intense.

Excitement and momentum create a new business owner reality check

Use some realism to balance your excitement. The vision of having no boss, taking exotic holidays or buying a new car to reduce tax is achievable. Remember, it is also statistically unlikely as most new businesses fail. However, to reach this vision, you will have to overcome several hurdles.

Approach the Should I Own A Business Question in a professional, organised manner. Treat it like a part-time job to which you devote an amount of time regularly. Work on your preparation like a project and aim to create momentum.

Collect your thoughts, notes, questions, information etc., in a journal or electronically. This process can be a test for how you will be in business. If you are too casual, not willing to research and learn or lack a high degree of motivation and stamina, then you probably should not start a business. Business owners must be creative and resourceful but also organised. Disorganisation is not efficient, and it costs money. 

Your attitude to money and success means making sacrifices.

Another aspect of your preparation is to consider how much are you prepared to sacrifice. One of those sacrifices is money and how you use money to grow your business.

Business ownership might look like a cushy number, but it’s not. It is hard work and requires an absolute commitment. 

Being the best technician, “tradie”, cook, chef, lawyer, manager or accountant is not really what matters. Instead, being able to harness your specific skill and make everything work in harmony is what matters. This article explains one of the biggest business mistakes that new owners make.

During this preparation, phase keep asking-“is this me?” Would I enjoy this challenge? What would I do in that situation? Am I comfortable being uncomfortable?

Try our quiz for more tips Entrepreneur Personality Quiz

Disclaimer

The information contained in this podcast is general and does not take into account your situation. The content does not constitute legal or financial advice and should not be used as such. You should consider whether the information is appropriate to your needs, and where applicable, seek professional advice from a financial adviser or lawyer in your jurisdiction. To find out more, please go to www.ShouldIOwnABusiness.com.

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