Owning your own business can offer some of the greatest satisfactions in your career, but risk of disappointment or failure is part of the package.
If you’re the kind of person who prefers the safety of a regular steady paycheck rather than the roller coaster of the highs and lows of running your own show, stick with what you know.
Like most people, you may not be sure, and maybe you would be a great business owner. After all, you have unflagging energy and are really organized. Plus, you can take steps to manage risk.
6 Things To Ask Yourself Before Starting A Business
To figure out if you have what it takes and whether the rewards outweigh the potential headaches of running your own business, ask yourself these six easy questions. If you answer no to more than two, you probably aren’t yet ready to strike out on your own.
Do you have your family’s support?
No question is more important. Your family should understand the lifestyle changes that may be necessary with your new business and that there may be a period where you have a reduced income as you get your new business of the ground.
Are you prepared to do the research?
This time-intensive approach is an essential component of your ability to manage risk. You not only want to figure out whether this business has a good track record but whether you are fully equipped to succeed with this business model.
Do you have sufficient capitalization?
As you may have heard, most business failures are due to insufficient capitalization. Your research should tell you how much money it will take to get your business to profitability. Make sure you have enough capital available. Don’t be overly optimistic and risk running out of cash.
Are you willing to put in the necessary hours?
Your research should also tell you how many hours you will need to work in a given business. If the business demands that the owner work a long schedule, be realistic about your willingness to take on those hours. If you are not prepared to work as many hours as the business will need, then you should find a different, less demanding business.
Can you tolerate risk?
Putting your hard-earned money into a new venture has inherent risk. Again, rely on what your research tells you. If a business seems to have more risk than you are willing to accept, it is the wrong business for you. You should go back to the beginning, and find a different business with a more acceptable level of risk.
Are you fully dedicated to the success of your business?
At least at the onset, this may mean little time for social life or hobbies as you put 110 percent of your brain power and time into this new business. You have to know that eventually the business should hum along without requiring so much of your time. And the satisfaction you will gain from seeing your vision realized supersedes all else.
A good business consultant can help you fine-tune your search and help you acquire the tools you need to succeed.
Another way to manage risk is to consider a franchise, which comes with a support system tailor-made for people who have little or no experience in that particular business. But the same questions apply. You need the drive, tenacity and vision to succeed.
About the author
Ready to make your dream of becoming an entrepreneur come true? Get your free evaluation today! Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a business coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484) 278-5489.
Disclosure: This post is sponsored by a CAREEREALISM-approved expert. You can learn more about expert posts here.
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