Are You Ready To Start Your Own Business? The 4 Key Questions You Must Ask
It's a tough decision to make, and even tougher when you don't have all the facts. Starting your own business is an enormous undertaking that has the potential to change your life in unimaginable ways. It will be hard, frustrating and at times feel downright impossible.
"Starting your own business is an enormous undertaking that has the potential to change your life in unimaginable ways."
But it can also be educational, fulfilling and ultimately, rewarding. That's why we put together this little guide, so you can make an informed decision about whether or not starting a business is right for you.
If you're still having trouble making up your mind, don't worry – we're doing our best to help you along with some tough questions that need answers before you start:
#1: Do You Know What Business You Want To Start?
First things first – you need to have a decent idea of what kind of business it is that will truly fulfill your passions and ambitions. While it's easy to fantasize about owning a mega-corporation with thousands of employees and a fancy office, the odds that you'll get there are so slim that it's not even worth thinking about.
This is why you need to figure out exactly what kind of business will make you happy. For instance, if you want to own a boutique clothing store, you'll need to figure out if the products you want to sell are worth investing in and how much money it will cost you to set up your store. This information can be found in any number of business books or online resources – resources focused specifically on starting a retail or market-based business like yours.
You'll also need help figuring out your management skills. To determine where your talents lie, take a business personality test and review the results carefully. They will show you whether you are best suited for working individually, or if you'd be better off taking on a partner to help shoulder the load.
#2: Do You Have What It Takes To Make It Happen?
Once you know what business it is that you want to start, it's time to figure out whether or not you're capable of pulling it off. This is where your knowledge of the industry and competition comes in handy.
Remember, there is a huge difference between having a good idea and executing your plan successfully. If you don't know what the company you want to start looks like on the inside, then it's difficult to figure out how to turn it into a profitable enterprise.
Find out what other companies in your industry charge per hour, how they market and sell their products, and what they have to offer customers (both in quality and price). This can be done by reading brochures that are available at local businesses or by surfing the net for any information you can find.
You can also use business checklists , which will show you exactly how much time and money each step of your new business will take.
Once you know how competitive the industry is and what your competitors are charging, you can determine how much money you'll need to start. First, figure out how much capital will be needed (in terms of start-up capital and business investment). Then, add in an hourly wage for yourself and buy a business plan that's proven to work.
Finally, set a goal for the amount of revenue you want your business to generate in the first year – this will act as a target for your fundraising efforts. If you don't have enough money, there are companies that will offer interest-free loans and grants, but they come with strict terms that prohibit a certain number of times they can be used.
#3: Who Will You Work With?
When starting your own business, you'll need to find a few teams that can help you get started.
First, you'll need a small team of experts who will work with you to create a rough draft of your business plan and help with the nitty gritty details. A good business plan will be customized to your specific needs and unique personality.
How To Start A Successful Small Business (Video) : ChanL YouTube channel . [Online] Available at: http://www.youtube.com/watch?v=biTd8WEV7D4 . [Last Accessed 15th April 2014].
#4: Will You Have Enough Money To Get Started?
While some entrepreneurs will use their own investments to get a business going, it's best to set up a separate bank account that people can contribute money too. That way, you won't be tempted to spend it on something else and you won't feel guilty about accepting help – after all, you'll be giving your investors an interest rate on their investment.
In addition to savings and investments, you may also want to take out a business loan. While these interest rates vary depending on your credit history and the size of the loan, they are generally lower than personal loans and don't come with high fees.
You may also want to consider applying for grants . These government or corporate grants can help you get ahead financially, and can be especially useful if you have trouble coming up with the cash on your own.
#5: What Will You Sell?
Once you have a business plan and a team that can work with you, it's time to figure out what product or service will make all of this possible. This is where some creative thinking is required.
To come up with the perfect product, consider how your customers may want to use it and why they'll be interested in buying the merchandise. There are a variety of different ways to select the right products for your business.
For example, you may be able to identify trends in a market, find out what new technologies will be popular next year (or even this month), or identify products that are currently in demand and have low inventory.
#6: How Long Will It Take To Make Money?
A business plan is only as good as its prediction of how much money you'll make in the first six months. If, for example, you're planning on selling cosmetics or furniture online, then it's important to consider how many sales will occur each day and figure out the price per unit of that merchandise.
In order to make more money, you'll also need to think about your costs. Estimate the expenses related to hosting and storing your online store, as well as the cost of inventory and shipping supplies. You can also take into account some of the other expenses related to running a business:
#7: What Will Be Your Competition?
You'll want to figure out how much competition there is in your industry – this will help you determine whether or not you'll have any unique selling points that will make you stand out from your competitors. Luckily, there are a variety of ways to find out what it's like on the inside of an industry before starting a business in that field.
Conclusion
Whether you have a great product or service to sell, strong business skills and a lot of capital, starting your own small business is all about identifying when you're going to be successful. That's why it's important to make all the right decisions for your new business as quickly as you can.
When it comes to setting up your own small business, the more time and money you invest, the more likely it is that your business will flourish – so don't be afraid to get online and start asking around for advice about what type of home-based business might work best for you.
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