There are three traits I consider mandatory for anyone considering starting a small business with little or no capital. They are:
- Motivation
- Frugal
- Persistence
A one person business is front loaded. Meaning that it takes a lot of work up front that you will not get paid for in the short run. But you will be paid back later when the business is all set up and running like clockwork. Then you’ll be rewarded many times over for your early efforts.
Motivation
To succeed at starting a one person business you have to have a reason. It’s a long and hard road and without the proper motivation chances are you will quit at the first or second obstacle.
What your actual motivation is isn’t important. But it has to be a deep seated motivation that will stay with you for months, or even years until the business starts giving back more than you put into it.
I didn’t find the necessary motivation until I was in my late thirties. That’s when I decided it was time to make something of myself. Any one of my earlier business ventures could have been equally successful but I didn’t stick with them.
But when the time came that I was sufficiently motivated I was making $50,000 per year within 5 years, and retired with a six figure income in 15 years.
The only difference between all my earlier businesses was that I finally got serious about the last one.
Frugal
It doesn’t make any difference how much money you make. If you can’t control your expenses you will fail. Not only in your business life but also in your personal life.
It takes time and money to start a business. And if you don’t have both then you will be like everyone else and have to get a real job. If you have high personal expenses you’ll not be able to take the risk with your time or money to start a business.
The more bills you have to pay, the less personal freedom you have with how you spend your time and money. If you need money now you will have to get a job. If you can manage with less you can spend some or all of your extra time and money on your new business venture.
You might have to spend some time cutting your bills down before you can go out on your own because the cash flow from your new business will be delayed.
Also if you have lots of personal overhead you will be pressured into having to make money fast and that can be very discouraging.
You also have to control your business expenses and not be tempted to start throwing money around when it starts coming in. You need to save to give yourself a personal cushion and save for future business expansion.
New tools and equipment in the business are more important to your future than a fancy car or a vacation. They are an investment in your future. But if you spend it all on unnecessary items then those important investments will be delayed.
Persistence
The less money and skill you have the longer your business will take to become profitable and the more obstacles and failures you will experience. The only way to succeed is to keep moving ahead in spite of them.
Starting a business is hard work. And without persistence it’s easy to give up and get discouraged. And you will get discouraged. But what’s more important is how you handle each situation. You have to forge ahead in spite of your difficulties.
This is the persistence you will need. The willingness to do what ever it takes. When you get this attitude firmly in your mind you will see any obstacle or delay as an inconvenience but not critical.
Of all the traits I feel that having the proper motivation is the single biggest factor in becoming successfully self employed. If you are sufficiently motivated then being frugal and persistent are easy to achieve.