Do You Have What It Takes to Be an Entrepreneur?

Are you a travel agent who wants to strike out on your own and start your own business? You’ll need to have a particular type of personality, plus a great opportunity, according to business author Carol Roth.

Entrepreneurs are take-charge individuals who are “comfortable with being uncomfortable” when it comes to risk-taking and uncertainty, Roth said. And while passion for an idea is important, perseverance counts more.

A former investment banker, Roth is the author of The Entrepreneur Equation. She spoke with Travel Market Report about the entrepreneur’s personality profile, plus the factors to consider before starting your own business and what it takes to succeed.

What does it take to be an entrepreneur?
Roth: Some people, no matter what happens, are fundamentally not cut out to be entrepreneurs. I liken it to Santa and his elves. If you are an elf and need Santa to tell you what to do, you will be waiting for orders. Elves are incredibly valuable, but they can never be in charge and run a business.

Entrepreneurs also have to be comfortable with being uncomfortable –– comfortable not only with uncertainty but with some level of risk, not a crazy risk, but an educated risk. There are high highs and low lows. If someone doesn’t want the drama they can’t be an entrepreneur.

How do you go about being an entrepreneur?
Roth: The best starting point is the opportunity. Most successful businesses identify a great opportunity and believe they are the best possible entity to fulfill that opportunity. You have to match those two up.

It’s important to think about what you’re trying to accomplish and what you want to get out of it. Doing so gives one the lens to evaluate the risks and rewards.

What do aspiring entrepreneurs do wrong?
Roth: What happens to a lot of aspiring entrepreneurs is they begin to think about an idea and fall into ‘business lust.’ They are very interested in the idea but are not thinking clearly about it.

So many people start businesses based on their passions. Passion gets you started, but it’s perseverance that keeps you going.

What should travel agents consider before starting their own business?
Roth: If you work for someone else in an agency it’s always a temptation to think, ‘Why am I giving this agency a cut of what I bring in when I’m doing all the work?’ Consider that the owner or owners are doing all the things you’re not in terms of running the business.

If you’re opening your own agency it will be your job to run the business. You’ll do the accounting, the public relations, taking care of technology, etc. You will be in charge of all of these things.

Why do start-up businesses fail?
Roth: A lot of entrepreneurs are overly optimistic. You need to temper optimism with realism and find that balance.

People don’t give themselves enough time to succeed; they haven’t gotten the reality about how long it takes for a business to establish itself. Today it can take two to three years for a business to get a foundation under it.

You have to know that you need money not just to start a business but to operate it during this period – also with enough money to live on. The ones that don’t anticipate that are the ones that give up or run out of capital.

Are there certain types of businesses particularly suited to entrepreneurs?
Roth: People who are successful are successful across the board. That’s why we see entrepreneurs who go into so many different industries.

Obviously if you have an interest in a particular industry it helps. But if you work smarter and harder, if you can take on the risks and not completely lose it, and if you can focus on the priorities, then with that mindset you can be successful. Which industry you’re in doesn’t matter as much.