A monthly cash flow analysis reveals cash inflows and outflows of your business. This will help you to make informed decisions on whether or not to acquire funds to make up for cash shortages.

A good business plan is a summary of the company’s vision and a blueprint for success. It should be written by entrepreneurs themselves. Writing a business plan serves as an opportunity for entrepreneurs to develop specific plans and to review areas that may have been overlooked in the past.

The lean startup method, which involves developing and validating a business model, is recommended over writing a complete business plan from the start. In particular, businesses in the early stage should have a solid and feasible plan to follow.

Peter Drucker described the entrepreneur as one who “always searches for change, responds to it, and exploits it as an opportunity.” That is, entrepreneurship begins from identifying business opportunities and exerting efforts to exploit them. The commonly accepted definition of entrepreneurship is: “① a set of attitudes and behaviors, ② including the ability to identify and pursue opportunities, ③ without being constrained by current resources or capabilities.”

Below are five areas that you should be competent in to start your own business.

1) Determination to sacrifice personal life for your company

2) Ability to build strong interpersonal ties with business-related persons

3) Leadership to lead the company

4) Optimism even in the face of adversity

5) Creativity and fast adaptation (ability to propose alternatives)

Successful entrepreneurs have many outstanding qualities. Among them, the characteristics listed below have been associated with entrepreneurial success.

1) Ability to overcome adversity [perseverance and resilience]  

2) Desire to take charge of a company

3) Good judgement

4) Ability to conceptualize one’s business

5) Passion and long-term commitment towards a company

6) Professionalism in one’s business

7) Ability to identify business opportunities, and an earnest desire to realize one’s vision

Among the many questions that entrepreneurs should ask themselves before starting a business, the seven questions below are the most important. Before starting a business, you must be able to answer the following questions.

1) Are you capable of developing groundbreaking technology for the proposed solution?

2) Is it an adequate time to start your own business?

3) Are you starting in a small market? Can you emerge as the market leader?

4) Do you have a reliable team, or a specific plan to recruit team members?

5) How will you sell your product?

6) Will your product, or follow-up product, survive in the market 10 to 20 years down the road? 

7) Have you identified a business opportunity that others are unaware of or find difficult?