Starting your own business could be one of the greatest and most important decisions you ever make. But, there is a difference between a great idea and a great startup.
But, you’re no doubt aware that starting your own business can be challenging and it’s not without risks.
So, before you invest a massive chunk of your time and life savings into your business idea, it’s important to understand whether you’re ready to become a business owner.
To help you on your journey, here are some points to consider before making the jump from employee to entrepreneur.
Weigh up the pros and cons of being your own boss
Most decisions involve the weighing of pros and cons, and this one should be no different. You need to be able to identify whether the benefits of starting your own business will outweigh the disadvantages.
While the pros are fairly obvious here, we’re going to outline them anyway.
Starting your own business will give you the opportunity to make a living doing what you love. You will determine who you work with, where and when. This could also be the solution to a better work/life balance for you.
Now it’s time for you to consider the flip side.
You might have to navigate possible cash flow problems with an uncertain wage. You will most likely be a one-man band for a while and have to manage everything on your own including managing finances, marketing and organising your administrative processes.
Have you got a good idea?
You may have all the characteristics of a great entrepreneur and the tenacity needed for a startup, but you still need a good idea and people who will be willing to spend money for it.
It’s not that your idea needs to be mind-blowing, just good enough to centre a business around. Toss your idea around with family and friends, because at this stage it’s less about whether you think it’s a good idea and more about whether other people do.
Is there a market?
It’s often cited as the million-dollar question – will people pay for it? Who and where are your potential customers? Try using a few market research tools like Google Insights, Google KeyWord Tool and Google Search. These could help identify trends related to your idea and also highlight the competition and how saturated the market may be.
In starting your own business, you are likely to have many ups and downs, so you need to make sure you surround yourself with a good support group. Remember to think about what you’re passionate about and what you would like to wake up to doing every day. Just make sure to do proper and thorough research, establish your target market and have a sustainable and viable business idea. Your idea can become a reality, or you can remain in the limbo of ‘what if?’
We hope you find this information helpful when it comes to starting you own business. If you’d like some specialised advice, contact the team at MWM Advisory. We’re good listeners and we’re here to help!