Business..Business….Business. Not everyone is built for the 8-6 or 9-5 life. Not everyone wants to suit up or have to report to someone. Some excel at it though. For those of you that could not adjust to that life and chose to branch out and “do your thing”, this one’s for you. How do you know that business is ready to take off? Before you relax and say “yeah, I’m ready”, you must know these things:
- Consider the kind of business you’re starting: Once you have decided to start your own business, whatever it may be, try to choose a business that involves something about which you are very knowledgeable. If you know little or nothing about surfing, don’t try to open a surf shop. If you know little or nothing about party planning and food services, don’t try to start a catering business. If you want to start a business involving something you know little about, then first educate yourself about every aspect of that business before you even think about trying to start your own.
- Start small and start with passion: The first rule about starting small is to spend only what you absolutely need and only when you truly need it. Need here refers to things that you cannot possibly run your business without – The necessities. Remember, what defines an entrepreneur is to go beyond thinking about it, ignore the calculated risks and do it. Be passionate about yourself, be passionate about your business.
- Know your players: This is similar to having a plan. Careful financial planning is critical right up front. All emerging businesses need capital to grow. Understanding those capital needs and how to achieve them is important going into it, as opposed to trying to figure it out as you go along. If you already know who you want on your team and you have their agreement, you could be ready to launch. On the other hand, if your intention is to start as a solopreneur, you can jump in at any time.
- Market Research: Test and learn. Try things on a small scale. Begin with friends and family and get their input on what they think of your product or service. From there you can go on to larger control tests where you will identify measurable quantitative results and actionable changes you might make in your product offering.
- Understand the risks of owning a business: Business owners understand that they’re taking a risk. It’s possible that you’ll never make a profit, and it’s possible that you’ll grow so quickly you’ll be overwhelmed. Being ready to understand and manage those risks is a sure sign you’re ready to launch.
Certainly, this isn’t a comprehensive list, there’s so much we haven’t covered. Share with us in our comment section. Watch out for more tips on Friday.