Starting a business is a popular dream among those who wish to break from the day to day drudgery their current job. If you’ve reached a point in life where you’re interested in taking a chance on your entrepreneurial dreams, there are many factors to consider. Here are some things to think about before you quit your day job.
Ideas are “a Dime a Dozen”
Only 1-in-60 people who dream of starting their own business actually follow through. Many of the other 59 ideas are good but good ideas aren’t the only key to starting a successful business. More important than a good idea is dedication and “follow-through-ability” i.e. persistence. Starting a business is hard work. Do you have the persistence and dedication necessary to get it done… no matter what? Your “million-dollar idea” isn’t worth anything until it actually makes a million dollars. A good idea with mediocre execution won’t get anywhere… BUT a mediocre idea with great execution will still yield a viable business. Execution is everything.
Start Slow
No matter how profitable your business may eventually be, it pays to start slow. Trying to get big too quickly can result in problems. Start small and use that time to work out processes and systems that are scalable. Although early months or years with little cash flow can make things tough, they are a time for learning when the consequences of mistakes are small as well.
A safe route is to start slowly in your spare time. This way you can learn the ropes, build clientele, and you still have your income to fall back on. Once you are earning as much part-time as you are full-time you can easily tell your old boss good-bye.
Be Honest with Yourself
Many people attempt to start a business without carefully considering their strengths and weaknesses. Their friends encourage them but don’t honestly believe in the idea. They tell you “Yeah, I’d buy that but then when the time comes they have nothing but excuses. Like ideas, opinions are worthless unless they are willing to put their money where their mouth is. Get advice from unbiased parties before committing money to the project. That is why programs like Kickstarter and GoFundMe are so valuable. They show how many people are really willing to buy your product because they have committed real money.
Is There a Market?
Before any business can succeed, it must have a niche. When there is too much competition, even great products can get lost in the crowd. Successful entrepreneurs start by identifying an unmet need in the market. This approach can be very effective in avoiding competition. But in addition to just finding a need, you have to be able to meet that need at a price the market can afford. Trying to compete on price in a crowded market is the road to poverty. By finding a niche with little to no competition you will be able to charge enough to make a decent profit.
Nobody Cares About Your Business More Than You
Your business is your baby. Just like a real baby, owning a business takes a lot of time. Often, a business will consume your evenings, weekends, and holidays until you get big enough. Even Microsoft required Bill Gates to sleep under his desk while he got it up and running. Time is part of your starting investment and must be factored in as part of the cost.
Can You Tolerate Risk?
No matter how good your product is or how hard you work, starting a business is a challenge. Many great businesses fail every year, leaving the owners’ dreams in ruins. If you can’t stomach the possibility that your dream won’t come true, you may not be cut out for entrepreneurship. Even if you don’t fear that risk, you still need a backup plan to keep you going if your business shutters.
Starting a business can be a powerful way to make money and assert your independence, but you should examine the opportunity carefully. A careful review of these questions will help you make the right choice.
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