Starting your own business can be scary. Especially if doing so means that you have to walk away from a steady paycheck, putting you and your family at risk.
Admittedly, not everyone should be a business owner. So, how do you know if you are? By asking yourself a few very important questions.
Am I Willing to Accept the Negatives of Business Ownership?
Some people want to start their own businesses because of all of the advantages associated with working for yourself, such as having more control over your schedule, unlimited income potential, and choosing your own clients. But there are also some aspects of business ownership that aren’t quite so positive.
For instance, if you want to take time off you can, but it will likely affect how much money you bring in…especially if you’re a one-person business. Also, most business owners wear multiple hats, which means learning a lot about all aspects of business ownership.
Certainly, you can outsource some of your duties or hire an employee to take care of them for you, but that leads us to the next question…
Do I Have Access to the Capital Necessary to Create My Company?
If you don’t have the money to cover your startup expenses, you’re sunk before you even start.
This means taking an in depth look at your checking, savings, and investment accounts to see how much cash you have on hand, as well as considering access you have to loans, investors, or other types of financial backing. This will determine if you’ve got enough cash to get started.
When answering this question, consider your real estate needs, any equipment you must purchase up front, necessary office supplies, and more. Don’t forget to include costs associated with setting up your website, marketing costs, and staffing and outsourcing expenses.
Am I Prepared to Work Harder Than I Ever Have in My Life?
There’s a common misconception that business owners have the benefit of a fairly open schedule that they can fill any way they see fit. Yet, this couldn’t be any further from the truth.
The reality is that owning your own business typically means that you’ll be working when the rest of your family and friends have off. It involves getting up early and working late while also giving up free time on nights, weekends, and holidays.
Not that you have to keep this schedule forever, but it’s not uncommon to work some grueling hours the first few years, at least. If you’re so committed to your dream that this is okay with you, great.
If not, or if you have other time obligations that will limit your ability to put in the work, now may not be the best time for you to begin a new company. Alternatively, it may be something you decide to do part-time until you’re in a better position to handle your business’s needs on a full time basis.
Answer these three questions honestly and you’ll know whether you should start your own business. The rest is up to you.
