There's no shame if you are happier as an employee, as some people don't have an entrepreneurial mindset.
Being your boss may sound like heaven on earth, but what you have to remember is that it’s still a lot of hard work. Believe me, I know. Running a company can be an amazing adventure, and it can even give you more security than a regular day job but how do you know if you are ready to start a business or a non-profit organization.
Many individuals come to me seeking advice on starting a business through BSF Designs. My first reply to that person is always in the form of a question - "Are you ready to do what it takes to start a business? It is so important to have a clear understanding of what it takes emotionally, physically, as well as financially.
It’s easy to feel ready much earlier than you are, and it’s equally easy to let fear hold you back long after you should have jumped. Here are seven(7) signs that show you might be ready to start your own business:
1. Do You Have The Passion?
Passion can be distorted but it is essential. Make sure you have something you’re excited about starting, rather than just frustration with your current job. Before you indulge your fantasy of believing that you will earn millions of dollars in your first year of business, STOP! You will need to be realistic about what it means to be a business owner. Taking into account that 67% of small businesses fail within their first year. You’ll need to be a true believer in your idea, as well as face a lot of closed doors and “NO”s as you start your new venture. You will also need to have a tenacious belief and passion in your product or service to give you the ability to weather the storm.
Passion is what drives you to succeed because you are completely dedicated to making your business work no matter how hard the process may be. Many aspiring entrepreneurs do not have a passion for their businesses. They just like the idea of success. Without having some sort of passion driving you, you will not survive as an entrepreneur because the grind of building a business will take a toll on you emotionally, mentally, and physically. When you have passion, positive thoughts are second-nature to you. The fear of failure, while always a threat, will only drive you to work harder to realize your dreams. The root of passion is belief, and belief has always trumped fear.
It is so important to have a clear understanding of the emotional, physical, as well as financial aspect when starting a business or a non-profit.
2. Do you have a product or service with a good market?
A great business exists where what you love meets what other people will pay for. Before you leave your day job to start a new company, be sure that your product or service has a market. Be realistic. As a consultant, I have to cut right to the chase and ask clients these very objectives, bottom-line questions about the product:
Is there a real demand for the product at the price you'll have to charge?
Is the demand large enough for you to make a profit?
Is the demand concentrated enough so you can advertise, sell and deliver the product at a reasonable expense?
Dig even deeper into the potential success of your product or service by determining the answer to the following critical questions:
Is there a real need for the product or service in today's market?
Is your new product or service better than anything else currently available?
What are the three ways that your product is superior to your competition?
Is your product lower-priced or of better quality than anything else that is available?
Do you think you could become the number-one supplier in the market for this product or service?
3. Do you have a plan?
I encourage anyone if you're starting a business or Non-profit, that you market test and then create a business plan. Even if you have already started your business, you can still create a plan that will give you a roadmap for how to achieve your goals and stick with your vision and mission. Cashing out your 401(k) and expecting a new venture to suddenly appear is not a great idea. Before you leave your day job, make sure you have a plan for your new business -- whether that involves a full business plan or a back-of-the-napkin outline.
It forces you to think through all aspects of your startup, highlights potential problems, and helps you explain all of your business concepts.
4. Do you understand the risk of success?
Risk-taking is a necessary element in business, and some failures are not just part of life, they are essential to our success. What will your life look like should your business take off? It might seem strange, but many people need to consider this. Especially individuals with family members who depend on them. If a business is booming, but you never have time to see your family, are you truly living the life you want to live?
Be honest with yourself about what your boundaries are and set expectations with your business partners and loved ones before you start your own business.
5. Do you understand the risk of failure?
The higher the risk, the higher the importance of understanding the cost of failure and how failure can be mitigated. Anyone starting a business or non-profit should assess their propensity for taking risks and recovering from failure. If they are taught how to deal with risk by de-risking their decisions, they will have a higher propensity for taking risks. According to an article under Fundera, 80 percent of businesses will make it through their first year, and about 50 percent make it to their fifth year. That's a pretty huge drop-off. Only around 30 percent of businesses make it to their tenth year. The percentage is even lower for non-profits. So count the cost.
6. Do you have a teachable spirit or willingness to learn?
Are you’re ready to learn? Well, when starting a non-profit or business the knowledge you gain through the process is priceless. Having the right background and education is an awesome start, and understanding of the market and your product/services is great, However, no matter how many degrees you have or years of work experience you’ve put in, challenges will always arise when starting a business. If you love the idea of learning something new every day, entrepreneurship is probably a good fit for you. Having a teachable spirit is so important when starting a business. Ben Herbster said, “The greatest waste in the world is the difference between what we are and what we can become.” If you do not have a teachable spirit you will never fulfill your God-given capabilities, or enjoy your God-given gifts.
7. Are you good with people?
A non-profit is an organization, so the face of that non-profit is the Board of Directors. When anyone is thinking of starting a business you’ll likely be the face of your own business. Is this the kind of attention you want? Many business owners are introverts. They excel in using their hard skills in solitude, but they have fewer people skills than others in the workplace. This makes it harder for them to rise above others who have better people skills. Being your boss does not mean you don’t have to be a people person, but managing a business is a social sport — you’ll have to work with your employees, vendors, clients, customers, and more. You will also have to network for resources, possibilities for advancement, and opportunities for business improvement. You must have or be willing to develop people skills.
Check out our new Arrivals just in time for the holidays. Since you spend so much time considering the best gifts for every family member and friend, you should take a look at BSF Designs store. Get some great ECO friendly gift ideas that will can help you with your shopping.
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