Planning to start your own business can be an exhilarating time.
Crossing the threshold as a captain of industry, there’s no better feeling than going it alone and embarking on your own personal career venture.
But there are some pretty huge roadblocks that should be considered before you dive in head first without taking a long hard look in the mirror.
These are 10 questions you should definitely ask yourself before starting your own business.
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How Am I Going to Fund This?
Asking for help from the bank of mom and dad is fine…for a little while. But can you actually keep your new company afloat when you hit the first few bumps in the road? If not, there are lots of options to help you finance your company, like Angel Investors and government initiatives. Make sure you have this before you start though, as things will quickly get complicated once you take the plunge.
How Long Will It Take Before I Turn a Profit?
Some businesses take years to turn a profit – even really successful ones (Twitter, we’re looking at you). Which is fine, so long as you’re prepared for it. Look at the data and map out your one-year, two-year and five-year plans for the business, so you know what to expect. Imagine you’re about to go on Shark Tank and get grilled by the judges – then step it up about 10x. That’s the level of ‘finances in order’ we’re talking about.
Has Anyone Else Tried This Before?
If you find yourself wondering why no one has ever tried to do this before, there’s a good chance they actually have. Your amazing idea may be inspired, but perhaps there’s a reason why nobody has ever been able to get it off the ground. Do your homework before you invest a lot of time and money in a venture that has already been attempted (unsuccessfully) before you and learn everything you can about why it failed.
Who is My Competition?
You can’t be offering a truly unique selling point until you know exactly what your competitors are rolling out. You must be different, better and more compelling than your business rivals if you’re going to succeed. Gather as much intel as you possibly can and try to find out the holes in their line of business so you can capitalise and gain customers who are looking for other alternatives.
Do You Know the Business Inside Out?
It’s a dog eat dog world out there, coupled with a shaky economy. So even if you know you have a great business model that doesn’t mean everyone else does. Bank managers, potential clients and even friends and family will all want to know how you plan on making this work and precisely what it entails. So make sure you don’t come up short because for a long time you may very well be the one and only face of the company – no turning to colleagues for help.
Am I ready to work harder than ever before?
Rome wasn’t build in a day. It was built on the weekend, early in the morning, and it probably didn’t take much vacation time off during construction. Be prepared to work your ass off, especially during the first couple of years while you’re getting established. And if you’re not completely ready, put it off until you are. Go hard or go home as they say – even though you’ll probably only be able to afford working from home as it is.
Will You Miss the Perks of Your Current Job?
It’s easy to think of all the bonuses of working for yourself. But spare a minute to mull over all the things you might mourn should you decide to go it alone. Paid vacation time, not having to work weekends, and social events that are put on and paid for by your company shouldn’t be sniffed at. It’ll take some adjusting but just make sure you’re not giving up something you’d miss too much.
Is Your Skill-Set Well Rounded Enough?
You may have to play the role of saleswoman and numbers guy, so make sure you can handle all components before you set out on this journey. It’s safe to say you’ll be wearing a lot of hats when you start your own business, so if you need to take a course or go to some seminars to learn how to give a great presentation or speech, get that under your belt sooner rather than later.
Are You Risk Averse?
Until now you probably haven’t been involved in making too many decisions that affect your company as a whole. But when you’re the owner of a business, you suddenly have the power to completely change the direction of the entire operation. They say that the risk-takers of the world are often the most successful – but it’s a whole different ballgame when it’s your baby we’re talking about. Consider potential exit strategies and know that you may have to make some tough calls along the way.
Can You Be the Not-So-Nice Guy?
It’s easy to say you can when the going is good. But having to let people go, break promises, and occasionally feeling like a total d-bag may be par for the course when you decide to go it alone. Be prepared to make difficult decisions that will help the business in the long run – even though it may feel pretty crappy in the moment. Unfortunately, nice guys often finish last for good reason.
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