Seven things to ask yourself before beginning your own business

Many people dream of starting their own business, at least, this idea can visit you from time to time. All the advantages of owning your own company on the face – no bosses for you, you work for yourself, the schedule is convenient.

frontal Home office desk

But let’s be honest. Despite all the advantages, own business is a very ambitious task, and according to statistics, most of the new companies are closed in the first year of existence.

We have chosen 7 simple questions, answering which, you will be able to understand whether you should risk your money and time and open your business, or better throw this idea out of your head and build a normal career in a foreign company.

1. How well do you work without the help of others?

Do you need the motivation to work from strangers? Can you set your own goals and monitor their performance? How effective do you spend your time, if the boss does not set you a clear deadline?

Many people believe that is the only one responsible for something makes life much easier, but often it is not. In fact, the most difficult thing is to start when there are no clearly defined goals and deadlines. The most successful entrepreneurs by their nature are independent and can work productively regardless of whether they have a boss or not.

2. Are you an inventor or an entrepreneur?

Many successful start-ups start with a cool idea, but the idea of a product or service is necessary, but not sufficient for a successful business. Too often, the “inventors” focus only on the product, the prototype, the patent, etc., while ignoring other aspects of business development. Having a good product does not guarantee you the instant arrival of customers. And “entrepreneurs” know this.

Of course, if you consider yourself more an “inventor” than an “entrepreneur”, this does not mean that you need to abandon the idea of your own business. However, most likely, you will need a partner with entrepreneurial qualities that will help you transfer your idea to a new level.

3. Does your idea represent any value to potential customers?

You probably already heard the popular statement “Love what you do and everything will turn out, and the money will come.” In theory this, of course, everything is fine, but in real life, it rarely works that way. I have no doubt that passion for your favorite thing is an important element of future success, but to create a profitable company you must offer something for which others will be willing to pay. After all, the market does not care about the fact that you embody your dream. People spend money on products and services that satisfy their needs and desires.

4. What distinguishes your business from everyone else?

Your idea is similar to the ideas of existing businesses, or is there something unique? How competitive will the chosen niche in the market be? These aspects are important to take into account (however this does not mean that the key to success is necessarily completely empty market segment). A more significant role is played by how you will position your company and its place in the market. The same Starbucks can hardly be called the first company selling coffee, and for sure they will not be the last.

Briefly, the idea for your business does not necessarily always have to be completely new. You should carefully study the industry, try to find segments that are not yet occupied, understand how to better take them and start working.

5. Do you want to work as a “man orchestra”?

When you work for someone else’s company, there are always specially trained people who can fix the printer, negotiate the delivery of water for the cooler to the office, prepare reports for the tax and so on. And if you decide to start a business, it is better to prepare yourself immediately for the idea that all these things at first, most likely, you will be engaged.

Starting a new company usually involves many roles. Now you can perform the functions of a technical support person or a salesperson, and in an hour you are already an accountant. So before trying to open your company, answer yourself honestly to the question of whether you will be comfortable playing several roles with many different functions (including not the most honorable ones).

6. Do you have a financial cushion to start your own business?

If it is vitally important for you to know when the next advance payment comes to the salary card, it will be hard to work for yourself. Small companies and freelancers often face fluctuations in income, and when you start your start-up, your company may not be profitable for several more years after the foundation.

It is very important to clearly understand, at the expense of what financial sources you plan to maintain your existence and develop your business. In many cases, the best time to prepare for starting your own business is the period of work in a foreign company.

7. How will you accept that fact if something does not work out?

When there is already a lot of energy, time and money spent on what you are doing, it’s hard not to take rejections and frustrations somehow differently than not as a personal failure. However, entrepreneurs should be prepared for a lot of negative news – from investors, sellers, users in the global network. Do not spend a lot of time to “digest” the insult, better draw a conclusion from the current situation and move on.

And a few more thoughts

Asking yourself uncomfortable questions in advance, you will help yourself to indicate the boundary between success and failure. However, if one or two questions made you think, do not let it give up the dream of starting your own company. Becoming a successful entrepreneur is more than possible, you just need a few extra steps to achieve your goal.

The author is an expert on occupational training and a prolific writer who writes extensively on Business, technology, and education. He can be contacted for professional advice in matters related with occupation and training on his blog Communal Business and Your Business Magazine.