Things to consider before starting a business
Being your own boss is a dream that many of us hold dear. The freedom it promises is undeniable, but we rarely consider the responsibility it entails. Starting your own business comes with significant risk and investment. Before making the jump, do your research to make sure you are both financially and mentally prepared for this adventure.
Does your product have a market?
Although you may be certain that your brilliant new product or service will be a hit, what you need or want in your life may not translate to the masses. It is important to do market research to verify this. Although it is difficult to justify investing in market research to confirm your belief, hiring a company to conduct this research is far less expensive than creating a product that doesn’t have a market.
Do you have a rainy day account?
Starting your own small business is unavoidably turbulent, filled with highs and lows. And for the first few months, probably more lows than highs. It is vital to have a rain day account to allow for flexibility during trying times. Having a large enough rainy day account will help you to avoid making massive layoffs and other cost cutting measures during times of difficult business. American Express recommends having enough funds to cover 6 months of operations in your rainy day fund.
Are you willing to work long hours?
When starting a small business, there aren’t a lot of hands on deck. You and you along will have to do the brunt of the work (unless you have some very kind friends or family members willing to help). Being the founder of a small business isn’t a weekday, 9:00 to 5:00 job. Be prepared to work odd hours on odd days. Elon must worked around 100 hours a week during the early PayPal days. Now, none of us are Elon Musk, but it is an excellent example of how driven one has to be to make a successful business. The amount of work you put into your company is directly proportional the probability that your company will succeed.
Image: EsteBuilders
Sources: Entrepreneur, American Express
