Many people like the idea of running their own business. This might be because they think that they will be able to make a lot more money, they like the idea of being their own boss or they have some innovative ideas that they want to try out. Although all of these are good reasons, many small businesses fail quite quickly, they can be a lot of hard work and pay is not always that good. It can be easy to see some entrepreneurs making successful businesses and thinking you can do the same, but the reality is that only a few people manage this. Therefore, you need to consider your own personal situation to decide whether this is the right decision for you. It is worth considering a few things:
– How will I manage financially? – it is so important to start by addressing your finances. Whether you live with parents, own a house, rent one for you and your family or whatever, we all have financial commitments. Some will have much more responsibility than others, depending on whether they have a family to support, loans to repay, rent and utilities to pay or whatever. It is so important to make sure that you are aware of what you need to be able to pay for and whether you will be able to keep up with this if you start a business. A new business will have no guarantee of any income and in fact you may have to pay into it to start with. This means that you will need to think about how you will manage that. If you have savings you can fall back on that could help in the short term. If you have an alternative income from investments or something like that it could help. If other family members are contributing to the household that will help as well. It is worth actually sitting down and looking at the figures so that you can calculate how you would actually manage. It is worth assuming that you will get no income to start with as then you can plan for the worst possible scenario. It isn’t to be negative when starting a business but you also need to be absolutely sure that you can manage financially as you will not be able to top up your income with benefits if your business is not doing well.
– Can I commit the time? – a business takes a lot of time to start up. You will need to commit to working lots of hours and probably not getting paid for it. You will need to do lots of different things and so you will need to be prepared to put in the hours. This could mean working evenings and weekends as well as days. If you are still doing a job to bring in a guaranteed income then you may need to spend all of your other spare time working towards the business. If you have other commitments then these may get in the way.
– Do I have the skills? – It is worth thinking hard about whether you have the right skills to run a business. You need to think about all of the things that you will need to do. Not only will you need to help in the day to day running whether that is producing goods or services, but you will also need to think about marketing, accounts, management, law and all manner of other things that come hand in hand with running a business. There will be a lot to master and a lot to do. It is worth thinking hard about whether you have the skills for this and if you do not then you may want to do a lot of learning before you start the business as this will be better than learning on the job when mistakes you make could be expensive.
– Is it likely to be successful? – it can be easy to convince yourself that your business will be successful and think that you will be able to make lots of money. However, it is worth thinking realistically about it. Consider whether there is any competition for what you are doing and how well they are doing. Think about where your customers will come from and whether they will be willing to pay for what you are providing. You will also need to decide whether your prices will be enough to make you a profit without being too expensive for your potential customers to be able to afford. There is a lot to think about and it is worth discussing with lots of people before making your decision as others may see flaws in your plans and possible problems that you may not notice because of your enthusiasm for your idea. Try to take their points of view on board.