December 24, 2013 at 10:54Seven questions to ask yourself before starting your own business
Many people dream of starting their own business, at least such an idea may visit you from time to time. All the advantages of owning your own company in person - no bosses for you, you work for yourself, the schedule is convenient.
However, let's be honest. Despite all the advantages, owning a business is a very ambitious task, and according to statistics, most of the new companies are closed in their first year of existence.
We have chosen 7 simple questions, by answering which you can understand whether you should risk your money and time and open your own business, or it is better to throw this idea out of your head and build a normal career in a foreign company.
20 main reasons for the failure of the ToWave startups
1. How well do you work without the help of others?
Do you need motivation to work from strangers? Can you set yourself the tasks and monitor their implementation? How effectively do you spend time if the boss does not set clear deadlines for you?
Many people believe that being the only one responsible for something makes life a lot 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 are independent in nature and can work productively regardless of whether they have a boss or not.
2. Are you an inventor or entrepreneur?
Many successful startups start with a cool idea, but the idea of a product or service is a necessary but not sufficient condition for a successful business . Too often, “inventors” focus only on the product, on the prototype, on the patent, etc., while ignoring other aspects of business development. Having a good product does not guarantee you instant customer appearance. And the "entrepreneurs" know this.
Of course, if you consider yourself more of 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 who will help you take your idea to a new level.
3. Does your idea have any value for potential customers?
You've probably already heard the widespread statement, “Love what you do, and everything will work out, and the money will come.” In theory, of course, this is all wonderful, but in real life it rarely works that way. I have no doubt that passion for what you love is an important element of future success, but to create a profitable company you must offer something that others will be willing to pay for. After all, the market does not care about the fact that you are realizing your dream. People spend money on products and services that satisfy their needs and desires.
4. What makes your business different from everyone else?
Is your idea similar to the ideas of existing businesses, or is there something unique? How competitive will the selected niche in the market be? These aspects are important to consider (however, this does not mean that the key to success is necessarily a 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.
In short, the idea for your business does not always have to be completely new. You should carefully study the industry, try to find segments that are not already occupied, understand how to better take them and start working.
5. Do you want to work as a "person orchestra"?
When you work for someone else’s company, there are always specially trained people who can fix the printer, arrange delivery of water for the cooler to the office, prepare tax reports and so on. And if you decide to start your own business, it’s better to immediately prepare yourself for the idea that, at first, all of these things will most likely be your business.
Starting a new company usually involves many roles. Now you can perform the functions of a technical support employee or seller, and after an hour - already an accountant. So before you try to open your company, answer honestly the question - will it be comfortable for you to play several roles at once with a large number of various functions (including not the most honorable ones).
6. Do you have a financial pillow to start your own business?
If it is vital for you to know when the next advance will come to your payroll card next time, it will be hard to work for yourself. Small companies and freelancers often experience fluctuations in revenue, and when you launch your startup, your company may not be profitable for several more years after its founding.
It is very important to clearly understand what financial sources you plan to support your existence and the development of your business from. In many cases, the best time to prepare to start your own business is the period of work in a foreign company.
7. How do you accept the fact that if something fails?
When a lot of effort, time and money has already been spent on what you do, it is difficult not to perceive the refusals and disappointments in a different way than not as a personal failure. However, entrepreneurs must be prepared for a lot of negative news - from investors, sellers, users on the global network. Do not spend a lot of time to "digest" the insult, it is better to draw a conclusion from the current situation and move on.
And a few more thoughts
By asking yourself uncomfortable questions in advance, you will help yourself identify the line between success and failure. However, if one or two questions made you think, do not let this give up the dream of opening your own company. Becoming a successful entrepreneur is more than possible; you just need a few additional steps to achieve your goal.