How to know if you’re ready to start a new business

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You’re sick of working for ‘the man,’ and you think it’s about time you branched out on your own and set up a business. You don’t want to have to listen to your boss dish out unfair criticism, and you’re pretty sure you could do a better job yourself anyway. Many people have the same thought but does that mean it’s time to start a new business?

Passion

The first thing you’ll need to ask yourself before you venture out on your own is whether you are passionate about the project. If you are only doing it because you know how the industry works, it is probably not the time for you to start this business. You’ll need the drive and desire to get up out of bed in the morning and if that’s not going to happen then your business will likely struggle to survive. That passion will help you to keep going when times are tough, and you’ll need plenty of enthusiasm to convince investors to spend their money with you.

Know the market

Maybe you want to open a cake shop. That’s great, who doesn’t love cake? Make sure that people are willing to pay for the product you are offering though, thinking of making only fruitcakes? That’s not likely to be a huge market, so you’ll have to find a way to tap into the customers that are interested plus diversifying what you sell to make a success. The customer is always right as they say, which means you need to be providing something that people are actually willing to pay for.

Start with a plan

Don’t just quit your job, make sure you sit down and come up with a solid plan. Some basic numbers are essential, you’ll have to make an informed decision about whether it’s financially viable to start up this new business. Think about branding, it will be important when you schedule a meeting with investors or the bank as they will have a better understanding of what it is you are trying to create.

Accept fear

You want to start your new business but are scared of the consequences of failure. That is perfectly natural, but it is at this time that you’ll have to ask yourself whether you honestly believe you can make a success of it. If you don’t truly think you can keep the business going, then it is not the time for you to start it up. You will need to have one hundred percent confidence and faith that you can make this project work.

Is this a midlife crisis?

You’ll need to be honest with yourself. Are you just freaking out because you’ve realized you aren’t getting any younger and you can’t see any progress in your current role? That doesn’t mean that you should start your own business! Perhaps all you need is a new job, instead of putting your entire home, savings and family’s security at risk, really ask yourself if this is something you want to do.

Can you manage yourself?

You will need to be disciplined. You have to look after the business accounts, so you need to have a good grasp of the numbers. You will have to come to work everyday, you can’t just hide under your blanket because things get hard. You need to understand that it can be a huge risk owning a business. Lots of money goes into getting them up and running, and that will likely mean lots of your own money too.

Owning your own business can be one of the most rewarding things you’ll ever do. You know at the end of each night that you have done some honest work, and you’re happy that you are making it all happen. It isn’t right for everyone though, so make sure you are aware of the risks and fully believe you can make it work.

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