You may be asking yourself if starting your own business is the right career decision for you. Taking that step from being an employee to being your own boss is a big one and can involve a lot of tough decisions. However, starting your own business can also be such a rewarding experience.
You get to make your own decisions, work your own hours and chase your dreams and goals. This doesn’t make it any less of a tough decision, though. If you’re trying to decide whether or not you want to start your own business, take a look at our top 7 strategies to help you make your decision.
1) Do you have the ability to handle stress?
There’s no doubt that being a business owner, especially a new business owner, is stressful. You will spend the first few years learning about how to run a business properly, as well as handling a lot of situations you never expected to deal with. You should honestly assess how you handle stress before deciding to run your own business, as your reaction to stress will determine how you handle unexpected challenges.
2) Are you motivated by more than just money?
It takes a great amount of time, energy and motivation to get a company up and running. And that’s only the beginning. Even when you put your blood, sweat and tears into your growing business, there is no guarantee that you will begin turning a profit immediately.
You will need to have a deeper sense of purpose than purely financial gain. Anything less than love and passion for what you’re doing and building will not see you through the tough times to get your business to the point of it being profitable. If you’re prepared for the fact that you may not see financial gain straight away, you could be ready to start your business.
3) Assess your strengths and weaknesses
Knowing what your strengths and weaknesses are before you start your business is essential. Successful business owners know themselves and how they operate. Running a successful business requires motivation, tenacity and commitment. Take note of your strengths and weaknesses and then be honest with yourself. If you know, for example, that you are not a self-starter or that you lack motivation, this may be your answer as to whether you’re ready for the responsibility of being a business owner.
4) Are you adaptable?
It’s best to be prepared for anything, as you are likely to be surprised with many unexpected challenges throughout your business owning career. You will also have to consider the fact that no matter what market you are trading in, there are going to be market evolutions that you will need to stay on top of to keep trading successfully. Your ability to adapt to these market changes and unexpected challenges will play a huge factor in how your business rides the waves. Your ability to be adaptable can help you decide if you do want to start a business.
5) Evaluate your business idea
Having a good business idea is the key to get off the ground running. Ask yourself a few questions about your potential business plan. Is there a market for your service, product or knowledge? How long will it take you to create a product? Is there no competition or is the market already flooded? If so, why? How long could it potentially take you before you see a profit? Creating a dedicated business plan and carrying out research will help you ascertain whether or not your business idea is a good one. Having a solid business plan can be a determining factor in deciding if you want to start a business.
6) Do you have adequate resources and finances?
This is something that tends to hold back many would-be business owners. Reviewing your financial position before you start a business can help you avoid some sticky situations down the track. You need to ensure that you have adequate funding or capital to cover the start-up costs and at least the first year of business expenses. Usually, businesses don’t make a profit in their first year of business. If you’re running your business full time, how are you going to cover your expenses?
Create a budget and calculate how much capital you are going to need to get your business off the ground and then figure out how you are going to get that money. Do you have savings that you are going to contribute or could you apply for a business loan?
7) What will I do if my business doesn’t work out?
This can be a tough concern to think about for many people, as no one wants to plan for the possibility that their business is going to fail. Most business owners put countless hours and an incredible amount of effort into their business succeeding. Unfortunately, though, it doesn’t always work out the way we wish, no matter how much effort and time we put into it. If the worst were to happen and your business fails, what will you do afterwards? What is your backup plan to ensure you can get back on your feet?
It can be difficult to plan for the potential failure of your business, but it can help you avoid a lot of uncomfortable uncertainties. Knowing how you will get back on your feet and having an action plan handy if you need it will not only provide you with a Plan B, but it can also help you feel like you don’t have to worry so much, as you have all angles covered. If you know that even if your business doesn’t work out you’ll be able to pick yourself up and move on, you may be ready to start a business.
Deciding when to take the plunge and start your own business isn’t easy. There are so many factors and concerns that can affect your decision that it’s not uncommon to be a little confused. Take the time to consider the questions and strategies we suggested to ascertain whether or not you want to start a business.
If you need more tips to help with your business or are after further information about new businesses and start-ups, take a look at other articles in our blog here.