Should you start your own business? You have had that one great idea that you think will be a successful business. But should you actually do it? There are many reasons you should turn your idea into a business, but there are also many things to consider before actually getting started.
Reasons You Should Start Your Business
- You can be your own boss – Being your own boss definitely has its benefits. You can choose when you work, where you work, and who you work with. Being your own boss also means you have job security.
- Gain equity -When working for someone else, you are trading your time for money. But when working for yourself, you are trading time for money and equity.
- Do things your own way – Everyone at one time or another has formed ideas and opinions of how they think the business should be run or how projects or tasks could be completed more efficiently. When working for another company it is not easy to persuade management to change a system that already seems to be “working.” Starting your own business gives you the opportunity to test your ideas and run the business the way you think it should operate.
- You can do what interests you – There is nothing better than doing what you love and getting paid for it. If you enjoy your work, then you will (metaphorically) never work a day in your life.
Questions You Should Answer Before You Start
- Does your product or service have a place in the market? Research your market and potential competitors to see what products or services already exist that are closely related to yours. Know what problem your product or service solves for consumers and determine their likelihood to purchase.
- Are you willing to put in the time? Starting a business is time-consuming in the first few years. You will probably have to work around 80 hours a week while your business is getting up and running, so it’s important to first talk with your family so they understand how demanding and important your time is to the success of your business.
- How much money do I need to live on? There are many hidden or unexpected expenses when starting a business that may cause you to have to dip into your bank account to cover the costs. It’s a good idea to know your costs of living and understand that you still need to pay your mortgage, taxes, insurance, and food.
- Do you have a Business Plan? – A business plan defines the goals of your business, why you believe the goals can be met, and covers your plan for reaching them. A business plan is necessary for anyone thinking about starting a business. Your business plan defines your company and is useful when trying to acquire financial backing.
- Do you have the stamina? It can take a long time to get a business off the ground and can take an even longer time to see a return on your investment. Many startups have failed because the owners didn’t see a quick return on financial investments and simply gave up. You have to be willing to push yourself both mentally and physically to ensure the success of your business.
How You Know You’re Ready
- You’ve tested your idea
- You’ve done your research
- You’ve written a formal business plan
- You know the market
- You own the Intellectual property
- You understand the costs associated with your business
- You have a source of capital
- You’re ready to commit your time
- You have your personal finances in order
- You believe your business will be a success
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