If one of your New Year resolutions include starting a business this is for you. One question you should be able to answer is what it takes to start a new business. If you’re about to go for it, have you really considered what will be required of you and whether your business has a fighting chance? These are a few questions you should think of as a reality check before pushing forward.
HAVE YOU MADE A RESEARCH ON YOUR MARKET?
Your business will stand or fall depending on the number of number of buyers available. If there aren't enough buyers out there, your venture is doomed from the word go.
Some basic market research will tell you whether you’re in with a shot. Look into the number of buyers you can reach and the prices they are prepared to pay and try to know many rivals are trying to do the same thing. In an ideal world, you’ll sign up your first few customers before the business goes live.
HOW WILL YOU GET YOUR FINANCE?
There are some businesses that it may be some time before they make profit. For businesses like that, ask yourself this question, ‘in the meantime, how will you support yourself and your family? You may have a partner whose income you can survive on, or you could cut your spending. Now whether your business has an immediate or later profit, try to have a contingency plan that reflects the worst-case scenario.
DO YOU HAVE A BUSINESS PLAN?
All start-ups should spend time putting together a business plan, setting out expectations for how sales and costs will evolve with evidence for your forecasts. Without a clear vision for your business’s development, you are likely to fail. These plans can be changed, based on the circumstances within.
CAN YOU BEAR THE BURDEN?
Most times, people feel less burdened about working for themselves than for employers, but they forget that there is more work when working for them. One thing you should know about starting your own business is that you may have to work long hours to get the business off the ground, Are you willing to sacrifice your whole time for this, ignoring your personal life in the process. If you’re not sure you can make the commitment required, think carefully about whether the venture makes sense.
ARE YOU A RISK TAKER?
Starting your own business is risky, even with careful planning, and there will be ups and downs. If you don’t have sufficient self-belief, you’ll be held back by anxiety and floored by setbacks. If this sounds like you, tread carefully. Many of the most successful entrepreneurs didn't get it right first time, but with confidence they scaled through and were successful.