Each year more than half a million new businesses start but with 50% of those failing the first year and many more not making it past the first 5 years. Starting your own business is, undoubtely, a challenge, but in many cases it can be very much worth it. Don’t leave your job to start your new business without considering the following.
Maybe You Should Reconsider If…
If you are launching a business venture but can find yourself reflected on too many of the following statements, waiting or rethinking your tactics may be a better idea.
- You have altogether no experience managing a business.
- You believe your idea will work, but haven’t had time to sit down and do numbers.
- You just resigned and want to prove to your family that you can be successful by yourself.
- You like working with others, with a strict schedule and lots of planning
- The idea of promoting is something you’d prefer to avoid.
- You like knowing exactly how much your income will be each month.
- You don’t have reserves and are unsure about getting money to finance your business idea.
Starting Up Your Own business Is Worth It If
Starting up your own freelancing business is worth the risk if you can easily see yourself reflected on the following questions:
- You have researched your business idea even if it’s just informally
- Your business idea is clear on your mind
- You have realistically estimated your competition
- You have calculated an estimated audience
- You can live with little money for the next 3 to 6 months
- You have alternative ideas to make money in case you have to supplement your income until your first invoices are paid.
- You are aware of your strengths and shortcomings and how will they affect your new venture
- You are independent and can organize your own schedule
- The lack of economical stability doesn’t stress you out too much.
Starting a business is a challenge. The first weeks will be definitely a trial, both of your personal character and your skills as a businessman. Careful planning and a smart business plan can be helpful, but in the end you may even be required to quit or adjust your tactics if your business idea is not giving the expected results.
If you are still unconvinced about the challenges of creating a SME being worth it, the best you can do is to prevent those risks whenever possible. Design a business plan and assess your potential revenues and self employed expenses for the next two years, find individuals who can aid you with things such as sales if you are not strong at them and nurture a support network to assist you in making your business a great success.
You may possibly also have a look at joining up with somebody more experienced. This can help you learn the ropes and avoid costly mistakes due to inexperience. Another alternative is requesting guidance as well as mentoring from your local chamber of commerce or business support group. Being prepared will minimize the risks you may encounter to start-up, and also will help you answer them much better.