Anybody can start a business, but being a small business owner is not for everybody. Each year more than half a million new businesses are created. But the risk of failure is high, with a big number of those closing during the first 12 months and many more not making it past the first 5 years. Starting a business is, without a doubt, a risk, but in many cases it can be very much worth it. Is it worth it for you?
Can You Answer Yes To This?
Starting up a home based business is a good idea if you can sincerely answer yes to the next sentences:
You have conducted a feasibility study without letting your enthusiasm cloud your senses
Your business idea is clear on your mind
You have done market research
You are able to get your probable market share
You can live with little money for the next while your business is not profitable
You have planned other ways to boost your income until your first clients pay, or have enough saved up to pay the bills
You know your skills and shortcomings and how will they affect your new venture
You are independent and like organising your own work
The lack of financial stability doesn’t stress you out too much.
Does The Following Ring True
If you are establishing a business but can find yourself reflected on too many of the immediately following statements, reconsidering your plans may be a better idea.
You have absolutely no experience managing a business
You think your idea will be successful, but don’t have a solid business plan to prove it
You just left your job and want to prove to your family that you can be successful by yourself
You like busy office environments, under strong management
The idea of promoting yourself makes you uneasy.
You like knowing exactly how much money will be on your paycheck every month.
You really don’t have saved money and are not sure about how to finance your idea.
Starting a business is challenging. The first months will be unquestionably a bit of a test, both of your personality and your capabilities as a businessman. Sensible planning and a good business plan can be useful, but all things considered you may even need to be willing to quit or modify your strategy if your project is not giving the expected results.
If you are unconvinced about the negative aspects of establishing your company being rewarding enough, the best you can do is to control those risks as much as possible. Write a well thought business plan and try to estimate your company sales and costs for at least the next couple of years, search for people who can assist you with things such as sales if you aren’t good at them and put together a support network to aid you in making your business a great success even while you are learning.
You may possibly also consider partnering with somebody who has already been there. This could well help you avoid costly mistakes. Another option is requiring advice together with mentoring at your local chamber of commerce or business chamber. Being prepared for them is the best way of dealing with the risks involved in setting up a new business, and will give you peace of mind and tools to solve any problem that may come your way.