Is Starting Your Own Business A Good Idea? 8 Questions To Ask!
Answer this. How often have the idea of starting your own business and earning profits crossed your mind? Maybe, quite often, right? Chances are you feel frustrated with your 9-5 job and a nagging boss. Or you might be feeling annoyed with negligible increments even after your hard work over the years. All these and some more reasons might have pushed you into starting your own business. And while the idea seems exciting and a perfect way to achieve all your life dreams, running a business is no walk in the park. You will have to experience many challenges and setbacks along the way. So before you start your business journey, make sure to ask yourself the following questions to determine whether you are fit for your venture:
DO I HAVE THE NECESSARY SKILLS TO MAKE MY BUSINESS SUCCESSFUL?
You must have in-depth knowledge and essential skills to run the business operations smoothly. Unfortunately, not everyone is capable of becoming a successful business owner. Most startups fail because they lack the necessary time and money management skills. So ask yourself whether you can tackle the day-to-day operations and challenges? IF not, no need to worry. Plenty of online courses and seminars can train you. For instance, you can gain comprehensive knowledge of finance, management, accounting, human resources, and more by enrolling in a master’s degree program. Just click here to learn more about different MBA programs to help you move up in your career. The master’s program also equips you with essential business skills.
WHAT IS THE REAL REASON BEHIND STARTING YOUR VENTURE?
Ask yourself the most straightforward and fundamental question. Why? The answer to this question will be your motivation to continue and grow. Are you starting your business because everyone around you is doing so, and you want to jump on the bandwagon? Or your friend suggested it, and you find it adventurous? Reasons like these won’t get you far. After all, you need to have a deep love and passion for what you do.
WHO ARE MY COMPETITORS?
Once you have a clear picture of why you are investing your time and energy to start your business, here comes the next question. Who will be your rivals in the industry? Chances are, the venture you are planning to start exists already. Moreover, your competitors are likely to have a strong foothold in the market with loyal customers who may not give up their favorite for a new company like yours. If that is the case, you need to conduct competitive research to devise your strategies accordingly.
DO I HAVE THE FUNDS TO START AND GROW MY BUSINESS?
Starting up your business requires money. You need to have sufficient money for every business activity, including registration, paying employees, purchasing equipment, marketing, and overhead costs. You can choose how to fund your business depending on your needs. For instance, you can self-fund, take a business loan, or pitch to investors.
WHO IS MY IDEAL TARGET AUDIENCE?
Let’s admit it; no company can reach every person in the world, nor does any company launch their product or service to target the entire human population. This is why identifying your target market is crucial. Learning your target audience and their needs, demands, and preferences can help you market your brand exclusively to them, making advertising cost-effective. Make sure to go deeper with your research. For example, learn their personalities, pain points, and certain behaviors during different seasons or at the end or the start of the month.
WHO WILL BE MY EMPLOYEES?
Sure, entrepreneurship is a solo venture. Yet, you can’t operate and expand your business alone. Every company conducts various operations such as manufacturing products or services, advertisements, managing finance, and much more. For this reason, you need to have a team of well-qualified and expert professionals that share the same vision as you to help your business succeed. Be mindful; quality over quantity matters when building a strong team.
DO I KNOW WHAT TYPE OF TAXES I NEED TO PAY?
One of the most critical questions is what legal requirements you need to fulfill. When starting your business, you need to determine a legal structure depending on your tax choices. Four common legal structures include sole proprietorship, partnership, corporation, or Limited Liability Company (LLC). Your company’s legal structure will define what taxes you need to pay.
DO YOU HAVE A BACKUP PLAN?
No wonder you have positive intentions when starting your business, and you want it to be successful. However, at times things don’t go as you planned. So have you prepared yourself for the worst situation? Having a backup plan can help you when things don’t go your way on the first try. And while no one can predict what the future holds, preparing yourself for all possibilities is crucial.
FINAL THOUGHTS
Starting your business from scratch is exhilarating yet nerve-wracking. Moreover, starting own business and growing it is not everyone’s cup of tea. Many people like the idea of starting their business, but they don’t have the potential. So before coming to a final decision, make sure to consider these questions, because the answer will clear your mind and give you the confidence you need to move ahead with your goal. However, don’t feel upset if you currently can’t answer some of these questions. On the contrary, take it as a sign to put more thought into your business planning, so nothing goes wrong when you finally start.
