If you are thinking about taking the plunge to become an entrepreneur, you need to be incredibly aware of the reality that you will be living. Yes, millions of Americans have one time or another fantasized about becoming their own boss. But for those who are willing to take the risk, make sure you are one hundred percent committed to your mission of your business. This type of reflecting is absolutely necessary, especially when making the leap into entrepreneurship.
Below, you will find FIVE main questions you should answer, reflect, and internalize. These answers will allow you to come to a formal and logical sound decision of whether or not you are ready to start your own business. If you are, that is great! Create a plan and start making your dreams into a reality. If not, that is okay. It is better to know your mistakes now so that you are fully prepared in the future. Use these questions to create action steps of how you can get back on trap so that you can open your dream business.
1. Why are you deciding to start a business?
This is probably one of the most important questions you will be asking yourself. For any big decision, you do not want to make the mistake and rush into it. Know your reasons of what got you interested in that specific field or product. Understand why it is important to you. And last but not least, conceptualize how you can see it in your future. The response that you come up with will truly represent whether or not you are ready to start your business. If your answer is filled with uncertainty and doubt, then maybe entrepreneurship isn’t for you. But if it is purposeful, passionate, and well detailed, then you are off to a great start.
2. What type of financial capital do you have access to?
One of the biggest hurdles many businesses face is finding the financial capital to start, manage, and operate your business. Like it or not, money does play a large portion in whether your business can get off to a great start. Like the old adage saying, “it takes money to make money.” This is especially true for new businesses. Start off by evaluating the overall cost and expenses you will be enduring within a year span. Afterwards, create a plan of how you will attain the money. Will it from your own personal savings? Will it come from various crowdsourcing sites like Kickstarter? Or will you obtain the funds through a bank loan? Whatever the case, make sure you are able to attain that capital. It is that type of capital and amount that will dictate both the opportunities and success your business will have within a year span.
3. Is your product marketable?
Whether it is a service or a product itself, make sure what you are offering is marketable and needed to the public. Remember, you cannot have a business with out customers. Start off by testing your idea out to a small population. If you find that it is performing well in numbers, then retest it again to a bigger population or different location. If you find that the idea is just not capturing the attention of the consumers, go back to the drawing board and contemplate how to either improve your product or come up with a new one. Some of the best products and services are those that solve every day problems. If you have an unsolvable problem, solve it and sell it!
4. What professional skills can you transfer to your business?
When running and building a business, you will find that you will be wearing a variety of hats in every department of a business. From managing people to making tough decisions to tracking your finances, a majority of these responsibilities will rely solely on you. That being said, you want to have an honest conversation with yourself about your personal and professional capabilities and shortcomings. While some skills can be developed through time, others will demand your attention almost immediately when you start your company. If you find that you are lacking both the managerial and financial attributes to run your business, try seeking other partners. Otherwise, learn to develop them before making your commitment as an entrepreneur.
5. What if you fail?
Elon Musk once said that, “if something is important enough, you should try it even if the probable outcome is failure.” As a person, you need reflect on every hypothetical scenario, especially the extreme ones. If you do fail, what will you do next? Will you keep on try or will you go back to your old job? These types of questions test the character and confidence of a person of who they are as a business leader. No matter who you research, you will always find that their story of success always came with moments of failure. The question is: What will you do when that happens?