No single factor is a clear indicator of whether you are suitable or not. Being suitable for self-employment requires consideration of numerous aspects.
One of the most indicative qualities is whether you have an internal locus of control as opposed to an external locus of control. In other words, Are you in charge of your destiny? Are the outcomes within your control – determined by your hard work or dedication?
Don Hofstrand has noted some pertinent qualities which enable the success of entrepreneurs. These include:
- They can identify business opportunities better than others. They also focus on solutions and not problems and use failure as something to learn from.
- They are action-orientated with a sense of urgency and a high need for achievement.
- They have detailed knowledge of factors needed for success and the physical stamina to put their lives into their work.
- They easily seek outside help to supplement their skills, knowledge, and ability whether it be investors, partners, creditors, or employees.
Don goes further and notes these specific characteristics of high achieving entrepreneurs:
Risk Takers
It is commonly believed that entrepreneurs are risk-takers. However, the evidence suggests that they are risk-averse just like you and me. Successful entrepreneurs attempt to minimize their risk exposure whenever appropriate, by carefully assessing the risk/reward relationship of their actions. Risk is assumed only when the opportunity for reward is sufficiently large enough to warrant the risk.
Sense of Limits
At a very early age, from our parents, friends, and teachers, we begin developing a sense of limits. These are limits of what we can and cannot do and what we can and cannot accomplish. It is manifest in many ways such as “we’re not good enough, not smart enough, or not capable enough”. This sense of limits is based on emotions rather than logic.
Entrepreneurs either don’t have this sense of limits or fight against it. All things are possible. Removing the sense of limits unleashes the creativity and innovative juices that are needed for successful entrepreneurship.
Entrepreneurs are much more comfortable by operating in the real of non-convention rather than the conventional.
Locus of Control
Entrepreneurs tend to have a strong internal locus of control. Locus of control is a concept defining whether a person believes he/she is in control of his/her future or someone else is in control of it. For example, we all know people who believe they have no control over their lives. They believe that what happens to them is dictated by outside forces. People who feel they are victims of outside forces have an external locus of control – “it’s not my fault this happened to me.” By contrast, entrepreneurs have a very strong internal locus of control. They believe their future is determined by the choices they make.
Control of their Future
Entrepreneurs want to be self-directed. They want to be in control of their activities. This is linked to the “locus of control” discussion above. Entrepreneurs often don’t fit well in traditional employment positions. They don’t want to be told what to do. Entrepreneurs know what they want to do and how to do it.
Creators
Entrepreneurs like to create things. A business entrepreneur likes to create businesses and organizations. Often the more unique the business the better entrepreneurs like it. They like the challenge of coming up with new solutions.
Entrepreneurs may not be the best managers. After the organization is built they may lose interest or not have the skills needed to manage the business. Just because they are good at creating a business doesn’t mean they will be good at running a business.
Don goes further by providing a summary of “The Ten D’s of an Entrepreneur “ as initially noted by Hoffer and Sanberg as well as Graves and Williams.
Below are ten D’s that help define an entrepreneur. If you want to be an entrepreneur, you will need to possess many of these behaviors. As you read over the list, compare yourself to these behaviors. How do you stack up? What do you need to change?
- Dream -Entrepreneurs have a vision of what the future could be like for them and their businesses. And, more importantly, they can implement their dreams.
- Decisiveness – They don’t procrastinate. They make decisions swiftly. Their swiftness is a key factor in their success.
- Doers – Once they decide on a course of action, they implement it as quickly as possible.
- Determination – They implement their ventures with total commitment. They seldom give up, even when confronted by obstacles that seem insurmountable.
- Dedication – They are dedicated to their business, sometimes at considerable cost to their relationships with their friends and families. They work tirelessly. Twelve-hour days and seven-day workweeks are not uncommon when an entrepreneur is striving to get a business off the ground.
- Devotion – Entrepreneurs love what they do. It is that love that sustains them when the going gets tough. And it is the love of their product or service that makes them so effective at selling it.
- Details – It is said that the devil resides in the details. That is never more true than in starting and growing a business. The entrepreneur must be on top of the critical details.
- Destiny – They want to be in charge of their destiny rather than dependent on an employer.
- Dollars – Getting rich is not the prime motivator of entrepreneurs. Money is more a measure of their success. They assume that if they are successful they will be rewarded.
- Distribute – Entrepreneurs distribute the ownership of their business with key employees who are critical to the success of the business.
Some key elements to consider when you are contemplating Self-employment includes:
- total commitment;
- willingness to work for long hours;
- physical and mental strength; and
- help from your family.
Besides these skills and support you also need to have:
- identified a market opportunity, best be performed by following the pathfinder or navigator solutions provided by Nomad.cloud;
- practical skills to do the job (for example computer programming, building, plumbing);
- some business skills to enable you to run a business.
Some benefits of being self-employed:
- You are the boss – but do remember this is more often than not more difficult than working for a boss;
- You can work whatever hours you wish – being either an early riser or later sleeper can now be accommodated;
- You can go on holiday whenever you want – …well only when you can work on your business instead of in your business and that takes some doing!;
- You will learn more about business in your first year than you have ever learned before – trial and tribulations will be part of this ongoing journey; and
- You will deal with different people and situations continuously – emotional intelligence will be paramount.
Some downside of being self-employed:
- If you are not working, you are not earning – unless you can create duplicatable products or services and can implement a team to assist you.
- Taking holidays will directly impact your sales and turnover – unless you can find reliable staff and delegate some of your responsibilities.
- You will make mistakes, but you need to learn from them – remember FAIL stands for “First Action In Learning”.
