- After all, the market doesn’t care that you’re fulfilling your lifelong dream. People spend money on products or services that fulfilled a need or desire, if there is no customer need, the business will fail.
- Calling the shots, setting your own hours, and making things happen, can be more fulfilling than anything else. However it’s not a easy feat, and many would-be entrepreneurs quickly become unsettled by the hard work and uncertainty of the lifestyle.
Has an Entrepreneur asking yourself some tough question ahead of time could mean the difference between success and failure. In your next startup, or if you have already start you can also take time to reflect on them. You maybe tired of your 9-5 or you just want to be your own boss. After all, starting your business is sexy, glamorous lifestyle that present the ultimate freedom when it comes to choice of profession. Television portrays entrepreneurship as the road to riches. You choose the hours you work and when you don’t have to.
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But if it was so sexy as they may all put it. Were comes this staggering Statistics of small business failure.
Before prematurely jumping into entrepreneurship, though you need to ask yourself the right questions to ensure that being an Entrepreneur is the right choice of lifestyle for you.
1. Does my business Idea offer value to customer?
Value is what people buy. So a business worth investing time and energy into must by any miss makes it customer life better?
If you are following your passion, will it add value to someones life. “Love what you do and the money will follow.” While this sounds nice in theory, it doesn’t always work that way on real life. There’s no doubt that passion is an important key to success, but in order to build a profitable business, you need to offer something that others are looking for. After all, no one buys what you love, people only buys what they want.
2. Why did I want a business?
Understanding your motives for starting a business will help you strategizes your business and increase your rate of success.
Did you just want to escape your regular 9-5? Or everybody is doing it, so you have to do it?
But there is a definition of success I love most, by eale Nightingale, he define success as “the realization of a worthy ideal” when you don’t have a purpose starting a business you round up amount to mysterious percentage of failed startup. Your purpose gives you direction.
Starting a business should be because of a void in the market place you want to fill.
3.where does my partner stand financially?
If you’ll be going into Partnership , you have to remember that you are not partnering with a set of skills, or a personality you like and feel comfortable working with. Instead, you are partnering with all the personal stuff the potential partner bring on the table. This means the debts, loans, investments of the personal or business nature?
This may sounds like a standard and prudent business question, but it’s not. It’s a very personal question that will reveal a lot about what the Person you want to partner with. If you need your partner present and focused to help you run a business, you need to know what kind of financial implications could steal that partner away.
4. Do I have the stamina and energy to run a business long term?
When entrepreneurs start their own business, they are full of excitement and posses an unearthly amount of energy. Many new business owner are eager to finally have a product/services and the store front they can call their own. They will do anything to see their business succeed yet, after a couple of months when the honeymoon period of entrepreneurship ends, the energy that once filled the business owner begins to ware.
Rome wasn’t built in a day and neither were the most successful small business. Creating a business with staying power that lasts until you are able to retire or sell is no easy feet and is a process that take years.
Long hours of juggling countless responsibilities begin to take their toll and the true test of a business, owners grit commerce’s. If the entrepreneur can maintain their vigor and weather the Rocky storm that is business ownership. After several years they will likely be rewarded by a stable business that produces dividends.
5. How did you see risk?
When asked for advice of becoming an entrepreneur, the Richard Branson’s and Jeff bezoz of this word all emphasize that failures are path of building a business.
Starting a business takes guts, no matter how well thought out a business plan is, entrepreneurs always take on a certain level of risk. And the perceive risk associated with entrepreneurship is the number one reason people seek security over the freedom of being an entrepreneur.
When encountering potential risks, business owners should perform a cost-benefit analysis to make well-informed decisions on whether or not to pursue an action.
6. Am I really willing for this business to take time?
Are you willing to spend as much time as it takes to get your business off the ground? Sure you are. But what if that meant working 16hours days for two years while watching money slowly drain from your bank account? With no quarantee of success at the end?
If this is your first business, it’s easy to shrug of the warning about how long it will take for your business to catch on. But seasoned entrepreneurs warn newcomers about this for a reason most successful have to survive a lengthy period of well, not being successful.
7. What will I actually not be given up, and what will I be giving up to make this business a reality?
Before you launch a business take inventory of your current resources and how you spend your time. Then, make some thoughtful decisions about what part of your life you are willing to give up while you build your business.
8. Do you have a team in place to help you:
You are going to need help with your new business, at a minimum. You’ll need a bookkeeper and a lawyer, but what about other team members you’ll need your first employee employee will likely be a virtual assistant to help with administrative tasks, or a marketing person to help get the word out about your new business. Then you’ll need sales support it will also be good to get assistant from other complimentary businesses who might be willing to make referrals for a modest fee going to network events or your industry association will likely bring you the relationship you need.
9. How much Money will I need to get started?
There is a business law that this called to mind. “Never run out of money” money is one of the most important factor for all businesses. The amount of money your business is able to generate determines the growth and longevity of your business. This is why you must determine the amount you will have to invest into your business to get it up and running.
And Loans are one medium which small business owners use to finance there startup. But though majority use there personal savings or use family and friends financing.
Try to seek investment from family or friends before seeking a loan. A loan will be harder to secure and you will need to it up personal assets as collateral since your new business has no asset itself. If a loan is required, only get as much as needed, and be sure you have a strategy developed that work towards paying back in full within the stated time period.
10. What taxes did I need to pay?
You definitely do not want to have a lien placed on your business because of unpaid taxes.
The taxes you pay will be based on the legal structure that you choose. Where your business is located, and the profit and expenses incurred during the year. It is important that you keep a record of all business transaction.
If you cannot afford an accountant starting out, invest in accounting software, you want to cover yourself from any possibility of being accused of tax fraud. As your operations grow and becomes more complex definitely need to hire a accountant.