Do You Have What It Takes to Start a Business?

A dead-end job or a job where the boss doesn’t appreciate your efforts may lead you to look into starting your own business and giving up your current place of employment. However, before you hand in your resignation, it’s important to know whether or not you have what it takes to be your own boss.

Ideas to Paper

Many people have wonderful ideas going on in their head about a possible business. However, transferring them onto paper and actually turning them into a profitable business can be difficult. Before you make a decision, one way or another about starting up a business, you’ll need to do your homework and research the ideas you have. This is a critical first step that can make or break your business before it has a chance to start. For instance, does your business fit into the area, or are there already a few well-established businesses selling the same products or providing the same services.

Passion

Many people go into business because they have the necessary skills, but unfortunately, they don’t have the passion to turn it into a highly profitable venture. Don’t underestimate the power of passion. Even if you don’t have all the skills, having an interest in something will drive you to learn more and excel. For example, you currently work for an accounting firm because you are good with numbers. However, your true passion is fishing, but other than reeling in fish on the weekend you don’t know much about most of the equipment. Here your ability to work with numbers will help with your books and your love of fishing will give you the will to learn everything there is to know about the sport.

The Money

Yes, the ugly truth is that you will need money. However, if you have good credit and ideas for your business mapped out on paper, many banks and other types of lenders such as LendingClub.com will give you a second look. The startup costs you will need to have upfront and depending on the type of business you plan to start the initial costs can range from just a few thousand dollars to upwards of $50,000 or more. Before seeking the actual financing of your business, create a spreadsheet that includes an estimate of your initial startup costs. Make sure to include things like licenses, permits, insurance, and legal fees, as well as the projected expenses for the first year.

Time Invested

New business owners spend most of their days, especially during the first few critical years, focused on their business. If you decide to start a business it’s important that you prepare yourself ahead of time that you will need to invest a lot of your time to get it off the ground and turn a profit. Since you are the owner you are responsible for bringing in customers, keeping track of the books, payroll if you plan to have employees and the upkeep of your inventory.

Promoting Your Business

One of the main goals is to promote your business without spending a ton of money. The good news is that there are several ways that are very inexpensive. Social media platforms reach millions of people daily and, for a small monetary investment, you can acquire new customers. Placing a small ad in the local paper is another way, especially if you have a storefront and a grand opening day planned.

Whether you are a man or a woman, if you have thoughts about opening your own business and a good idea, now may be the perfect time to act on it. Just make sure you weigh the risks and have a good understanding of everything involved with running a business ahead of time.

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