The lure of entrepreneurship has taken in – and destroyed – many good people. Statistics show that 8 out of 10 new businesses fail, and as such, it’s important to make sure before you start a business that you know what you’re getting into. Before you sacrifice your time, energy and hard-earned cash, consider these 4 tips for those wanting to start a business.
1. Is There a Market for Your Business Idea?
There’s a difference between a great idea and a truly marketable business idea. You know those infomercials you see on TV; the ones that make you cringe? They may once have been someone’s great idea, but some ideas are better left unrealized. Restaurants are a classic example of great ideas that should often be left in the mind and out of the retail market. How many restaurants in your local area went up, and then went down soon after? Before starting your business, do thorough enough research with honest people that will tell you whether or not your business idea has a chance. Be your own Shark Tank judge, and look at your business from a “devil’s advocate” standpoint and ensure there’s truly a market for your idea.
2. How Much Will Your Business Idea Cost?
Many times new business owners get into trouble –even with a great idea – because they neglected to do a thorough research of the business costs before taking the plunge into entrepreneurship. It’s vital before starting a business to think through all potential business costs and make sure that there are funds available to cover those costs – and have a savings cushion – before you sign on the dotted line.
3. Do You Have Enough Knowledge About Your Idea?
You may have a great business idea, but do you have the knowledge to take that idea from “vision” to “success”? Business ownership requires a great deal of knowledge, not just about the product or service you’re considering selling, but about accounting, marketing, business plan writing, tax laws and a host of other areas of business ownership. If you don’t have a thorough knowledge of these areas personally, it’d be a smart idea to make sure you have access to people who do before you start a business.
4. Have You Thought Through the Details?
Sometimes people get so caught up in their great idea and in the fantasy of what it would be like to be their own boss that they neglect to think through the details of business ownership before setting up shop.
When considering starting a business, ask yourself these questions
- How will you reach your target market?
- How will you overcome rejection of your product or service?
- What kind of a cushion do you have for unexpected business expenses?
- What kind of a plan do you have in place for marketing and social media outreach?
Owning your own business can indeed be a wonderful adventure – or it can be your worst nightmare. Before you take the plunge into entrepreneurship, consider the above questions, do your due diligence, and then, if it still makes sense, don’t hesitate to go for your dream.