A lot of people daydream about owning their own business and being their own boss, but for most the dream stays a dream. For the select few who take the leap and go into business for themselves, they are gambling with their savings and future. Becoming an entrepreneur requires a passion like no other and pure dedication to your mission. Passion, while essential, is not everything; it cannot make you successful all on its own.
There are numerous factors you must consider if your business is going to be successful. Of course, you can become an entrepreneur without considering any of the factors, and you may still be successful, but your chances are slimmer. For example, the people who struggle the most with their new business are the ones who open it purely because they hate their current job or boss. Making a significant life change because of unhappiness is a recipe for disaster. Think of the all the people who make drastic changes or expensive purchases during a mid-life crisis. How often does it work in their favor? If this situation applies to you, consider merely changing jobs or careers before going into business for yourself.
The most successful entrepreneurs are people who don’t hate their career, job or boss, but instead determine they have a different calling in life, which is where passion comes into play. They are also the people who have dreamt about their business for a long time, potentially years. It’s never a snap decision. If you fall into this category, it may be time to move forward.
You should also consider your experience and expertise. If you wish to sell a product or service in a market or industry, you know little about, you probably aren’t ready to be in business for yourself. Experience and expertise give you confidence not only in your product or service but in your dealings with customers and most importantly, with yourself. You need to believe in your product or service, and you need to believe in yourself. If you have the right credentials for the business you want to open and you believe in what you’re doing, confidence will be abundant.
Success also requires proper planning. Research everything about the market you want to enter. Is it a lush market? Are there enough customers in the market to allow another company? What is the history of the market? If there is a history of bankruptcies in your ideal market, your chances of success grow smaller. You need to determine your target market and audience, and if the market is already inundated with businesses, you need a niche. Find what makes your product or service unique amongst the other offerings on the market, and then find the audience that not only wants your product/service but needs your product/service, which creates repeat customers. If you have completed this research and planning, you are a step closer to being ready.
And, of course, success requires money. Whether it’s from a large savings account, cash out of your 401(K), investors or a small business loan, you need money. To be ready to go into business for yourself, you need access to large sums of cash. There are some ventures that can open with smaller amounts, but on average new ventures are expensive.
Want more information? Read our Blog Signs You’re Ready to be your own Boss.