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September 06, 2021

Do you have what it takes to be an entrepreneur?

Although not everyone buys the idea, studies show that successful entrepreneurs share a number of common personality traits that are the predominant indicators of success, outweighing education, family ties, skill, and experience.

Could you be one of them?

There’s obviously no foolproof aptitude test that can tell you if you’re suited to entrepreneurship but you'd be wise to think about 'who you are' as you contemplate what you'd like to become. 

Which means, if you’re considering turning your hobby into a business, it’s worth asking yourself a few questions to determine if you have what it takes, says Barry Moltz, author of “You Need to Be A Little Crazy: The Truth about Starting and Growing Your Business.”

1. Are you resilient?  All entrepreneurs need to be able to ride the rollercoaster of good and bad times on a daily basis.

2. Can you ask for help? You don’t know everything. You need to be able to listen and evaluate the advice of the people around you.

3. Can you get people to follow you?  Loners need not apply since entrepreneurship is not a solo sport. In order to build a business, you need to lead and delegate.

4. Do you like to network and meet people?  Business is ultimately about people. You grow your business through the people you build a trustful relationship.

5.  Do you like to sell?  If you don’t have customers, you don’t have a business. For awhile, you will be the chief sales officer.

6. Do you do well in ever-changing chaos?  Everyday is different. Some days are very different. Get used to it.

7. Can you live on a variable monthly compensation?  You don’t collect a paycheck every month like at a job. You pay your employees and vendors first. Some months, there may not be anything left for you.

8. Do you have a good personal support structure?  You will need it. When you have a bad day, you will need someone to pick you up. When you have a good day, you will want to celebrate a lot with the people you love.

9.  Are you flexible with your goal setting?  As an entrepreneur, you will need to set patient interim goals and change your target as you succeed and fail.

10. Can you hold a real job and work for someone else?  If you can, do it.  Having a job is probably an easier career especially in the short term.

Have you made the switch to self employment? Are things working out? What would you do differently next time out?

By Gordon Powers, MSN Money

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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...