1. If I have to, I’m willing to lower my standard of living for a while (avoid using mobile phone to call and cut back non essentials like having a coffee break at Starbucks) while trying to get my business off the ground.

True. Being self-employed usually entails a lot of work, especially when you’re just starting out with your business. You may even often feel that what you’re earning isn’t enough for all the effort you put in and stress you get.

It also often comes as a shock to former corporate employees, who quit their job to start a business, just how much it really costs to fund their own insurance, benefits, among other operational expenses.

2. I’m prepared to do a lot of everything, from answering the phones to changing the light bulbs, before I start hiring people to handle these details.

True. A good start-up entrepreneur should know how things work and how to make things work around the office. Being a start-up entrepreneur is not just about putting money into the business. You should be aware of and able to do even the smallest nitty-gritty.

For those who just left a cushioned corporate job, it’s all up to you. There’s no one to call when the plumbing backs up or your computer system crashes. If you’re an energetic jack-of-all-trades type, terrific, but if you have to, line up a reliable local techie who makes house calls, just in case.

3. The main reason I want to start my own company is that I’m unhappy in my current job.

False. ‘Entrepreneurship is not for everybody,” says Socorro Ramos, Founder and General Manager of National Bookstore. Though she admits that entrepreneurship can be learned, Mrs. Ramos said that the person’s outlook is very important to consider. “You may have the skills, but if you don’t have the proper mindset and the willingness to risk your own money along with your regular paycheck, then you will never want to be an entrepreneur. There are many who choose job security and are also successful being professionals. One is not better than the other. There are just different strokes for different folks who take different paths to achieve success,” she added.

Terri Lonier, a longtime American entrepreneur and counselor to the self-employed whose website, workingsolo.com, offers a free monthly e-newsletter for business owners, says that “you really have to be ruthless in assessing your strengths and weaknesses. If you yearn to go out on your own mostly because you’re unhappy in your current position, you’d probably be better off looking for another job instead.”

4. 1 have enough savings stockpiled that I could pay my bills for three full years, even if my business doesn’t show any profit during that time.

True. Most start-up businesses take three years to break even (if you’re competitive to last that long), so you would need a lot of cash on hand. It would also be good to secure an income-generating activity, even if part-time, so you could be cushioned from emergency financial needs. Of course, it’s possible to finance your start-up by taking out a second or third mortgage and maxing out the credit cards, but wouldn’t you rather be able to sleep at night than worry of all the interests you have to pay?

5. Successful entrepreneurs aren’t necessarily good salespeople.

False. If you can’t even talk your parents into buying your idea or product, then you’re already in trouble. Many experts say the most-overlooked cause of new-business failure is that fledgling entrepreneurs are reluctant to get out there and sell what they’ve got especially those who come from a structured corporate environment where sales was always someone else’s job.

An entrepreneur should be always perceptive of opportunities and never shy or slow in grabbing them. Talking to different kinds of people will already be part of an entrepreneur’s 24/7 job, so if you can’t handle a good conversation with a stranger, you may want to think twice or at least hone your interpersonal skills first before plunging into a business.

6. I tend to bounce back quickly when things don’t go as smoothly as I expected.

True. Surprises are a staple of an entrepreneur’s daily life. Most especially when you’re starting up, a lot of things might shock you and often times, what you really want never happen that way. A good entrepreneur has tolerance and patience virtues.

In fact, many successful business-owners describe getting a new company up and running as usually matter of three steps forward and two steps back. If you have trouble dealing with unpleasant surprises, your first year or two as an entrepreneur may send you running back to the corporate fold, if not bankrupt you yet.

7. Business owners don’t need do as much networking as corporate employees do.

False. Having good public relations is valuable in any job, but for small-business owners it can spell the difference between thriving and starving. Especially for a newbie, an entrepreneur should always be ready to get acquainted.

In most corporate jobs, a wealth of connections, with customers, potential employees, vendors, suppliers, and financial backers, is already in place when you walk in the door. But when running your own show, you have to that complex web of relationships. If you can, it would be good to always have a card ready for giving out. Consider calling cards as one of your most important currencies.

8. Starting a business is my own decision, so I don’t have to discuss it in any great detail wigh my spouse or family.

False. Over and over again, entrepreneurs and the folks advises that opposition from your spouse, kids or sometimes your parents, who resent the fact that you’re never home anymore, can strain a new business to the breaking point.

You’d realize how hard it is to pursue a business with your close family relatives not supporting or, worse, discouraging you. You may have the will power to survive like them, but why would you risk going to a point where your personal life suffers?

Reconciling opposition to what you’re doing is always positive and explaining your idea, your business to people close to you and who oppose you is one step towards success.

9. It’s a good idea to hire an accountant with a lot of experience in handling the special tax issues that small businesses face.

True. Starting out your business as a registered firm, you will have to deal with complicated papers from government agencies like BIR, SSS and even your own local government. You will face a barrage of strictures and requirements, and trying to figure them out on your own can lead to some pretty expensive mistakes.

Get references from current business owners, your dentist, your dry cleaner, or someone else your trust and hire an accountant who can guide you through everything from writing off office equipment to the correct tax treatment of bad debts. Paying off an accountant is much, much cheaper than paying a fine and being penalized for doing something wrong or not doing anything at all.

10. Start-ups in general are risky, but my business plan is so brilliant that I’m sure I’ll be wealthy within a few years.

False. As Lorenzo Yatco, the Entrepreneur board game inventor, says “a business plan is very different from an applied business plan.” You may be able to defend your plan to anyone in any ‘if scenario, but putting it in action will be a lot different. It’s already a touch-move game when you put your money in.

Tom Culley, a former McKinsey consultant who has been involved in dozens of start-ups in Brazil and the U.S., has also seen countless of would-be tycoons giving up in frustration when they don’t achieve instant riches. “Ninety-nine times out of a hundred, it takes many years of grueling, gritty, sweaty work to create a profitable company,” says Culley. “My rule is, survival first, then success.

source: Go Negosyo Magazine, www.gonegosyo.net.