Why do I want to start a business?1
I’m not talking about the particular business you want to start. I’m talking about any business. What are your motives to start something new? If you want to do this just to earn more money, think again! Because you won’t be making a lot of money for the first few years. Working less than 40 hours and going to vacation anytime you want are also not good reasons to start a new business. If you want your business to be successful, you need to work much more than 40 hours a week. If your motives for starting a new business are creating something new, solving a problem, creating a difference in your community, or to do something you love, then, you’re on the right track for becoming an entrepreneur.
Am I Truly Passionate About This Idea?1
If you want to be successful, your business idea must be your own. It can’t be a great idea that someone else told you that you should do. It needs to be your brainchild, something you are wholeheartedly excited about and in love with. Because, believe me, you’re going to need that passion on those long and hard days when you feel like giving up.
Can I Afford the Start-Up Costs?1
If you don’t have the money needed for the start-up costs, I suggest that you either go back to the drawing board and downsize your idea, or that you save aggressively for six months or more in order to have the cash necessary to cover all of the start-up costs. Ideally, you’ll want to be able to cover the first three to six months’ worth of costs with your savings, without even making a dime of profit. Not only will this cushion relieve a lot of stress that is often involved with starting a business, it will also allow you to invest some or all of your initial profits back into the business. This will give you an even stronger foundation for your business.
How am I going to pay the bills?1
You’ll spend from your savings at the start and for this reason, you need a sound business and financial plan. Also, keep in mind that unexpected costs will incur along the way, and you’ll run out of your savings more quickly than you think. Therefore, you need to figure out very well when you’ll be profitable or where you’ll find the money to continue your living.
Have I Done Enough Research?1
Most people are so eager to jump ahead and start the business that they don’t take enough time to really do their research. I recommend that you read at least 10-20 business-related books, before you start a business. These will help you shape your business from the get-go and will also cause you to analyze your plan and preparations to make sure things are solid. I also recommend that you talk to every person you know who has started a business or who works in the field or industry you’re wanting to go into. Tell them about your business idea, ask them for input, and pick their brain on the lessons they’ve learned along the way. This counsel could prove invaluable. Truly, every great idea I’ve ever come up with has been initially sparked by something I read or someone I talked to.
Am I good at making the right decisions?1
When you’re running your own business, you have to make the decisions yourself. You can get advice from friends and family, but no one knows your business better than you. Hence, you must be confident enough to make the right decisions. It’s OK to make the wrong decisions and fail sometimes, but you need to learn from these mistakes and not repeat them. Also, if you constantly make the wrong decisions, your business fails, and you start looking for a job again.
Am I willing to wear multiple hats at the same time?1
In corporate jobs, every employee specializes on a special skill because there are many employees doing many different jobs such as marketing, accounting, sales, IT, etc. However, when you start a new business, you’ll be the sales person, the marketer, the bookkeeper, and many more at the same time especially if you’re a solo entrepreneur. Therefore, you need to consider carefully if you can manage all of these responsibilities.