5 Signs It’s Time to Start Your Own Business
You have a brilliant idea and you want to put it into action. You dream about starting a business. But, perhaps, you don’t know if you’re ready to be an entrepreneur.
To start your own business isn’t easy. Anyone with an idea and some money can learn
How to know if you’re an entrepreneur
Here are five ways to tell if you’re ready to be an entrepreneur.
#1. You have passion
Passion is probably the most important thing you need to be an entrepreneur.
Something must give you passion in business. You might be passionate about a product, or you might be passionate about running a business like I was. No matter what you are passionate about, it’s that passion that will constantly move you forward. Passion will help you develop your business and push you toward success.
I don’t think you have to be passionate about the product or service you want to offer. It is possible that you can actually develop a passion for what you’re selling as you go. I did.
When I started my first business, I was passionate about being my own boss. I wanted to be a successful business owner. I wasn’t exactly passionate about what I was creating. But, what I sold helped me follow my passions.
I’m sure there are plenty of things in business you aren’t passionate about. You might dislike marketing, accounting, face-to-face networking, or something else. Your passion for the things you initially dislike will grow over time as you learn how they help you achieve your goals. For example, I originally hated to do public speaking, but I needed to overcome that fear if I wanted to become successful. So I overcame that fear, and actually learned to like doing it.
#2. You want to be your own boss
You sit at work and dream about owning your own business. You don’t want to be told what to do or when to do it. You want to create your own tasks and set your own schedule. You want to be your own boss. You don’t want to answer to anyone but yourself.
You’ll know when you’re ready to be your own boss. Your job will start to feel unfulfilling. You’ll think of better ways to do things, even if you aren’t able to implement them. Working on someone else’s timeline will make you frustrated. You’ll crave new tasks and want to learn new things. You’ll become restless in your current position.
Being your own boss means you have to be your own leader. You won’t have anyone telling you what to do anymore. You have to figure out what needs to be done and then do it yourself. If you hire new employees in the future, you will have to delegate tasks and make sure all the assignments are completed.
If you’re ready to take orders from yourself and blaze your own path, you might be ready to start your own business.
#3. You’ve done your research
You shouldn’t blindly start a business. You need to know that there’s a market for your idea. Conducting a market analysis tells you if there are customers for your business. You can find out where customers are and what they’re willing to pay. You can also learn about competitors and how difficult it might be to enter the market.
Before I started the business that would later become Top Echelon, I did a lot of research. I went through the phonebook to find potential markets to sell to. I called businesses and talked to owners about their needs. I went to the library and researched industries. By doing all that research, I found out that creating software for recruiters would have the most potential for me.
Not only should you do market research, but you should also learn what things you must do to start a business. What licenses or permits do you need? How do you register your business? What taxes must you pay? What are your overhead expenses?
You should consider opening a business only after you’ve done research first. You need to understand the practical parts of running a business. Starting a business comes with costs and risks. Knowing what they are before can help you reduce them.
#4. You have support
You can start a business on your own, but it’s a lot easier if you have support. Your family and friends should ideally approve and back your decision to become an entrepreneur. They should be there to encourage you.
Then, get help starting your business by finding small business advisers. There are all sorts of advisers: accountants, lawyers, bankers, marketing consultants, etc. You will have to pay for their services unless you are fortunate enough to know someone who will give you basic advice for free, but the cost is worth it.
You’ll probably try to do everything yourself to save money. But, sometimes you need to spend a little. Expert advisers can help you prevent extra costs caused by mistakes. And, advisors can set your business on a path for success. You can gain much-needed advice from these people. If you have a group of people who are willing to help you, you are in a good situation to start a business.
#5. You can make sacrifices
If you’re going to start a business, you must be willing to make personal sacrifices. Entrepreneurship can be difficult, especially at the beginning, and you might need to give up a lot.
You need to give up money. Starting a business can cost a lot, and that money must come from somewhere. Odds are, you’ll finance your business with your personal savings. And, you probably won’t get paid for a while. The first year I was in business, my partner and I made $12,000 each. The second year we didn’t take any money home.
You’ll have to live on minimal money if you plan on bootstrapping your business. You’ll have to cut back on entertainment, shopping, and food options.
Being a business owner also takes a lot of time. You have to put in long hours. You’ll probably work at night and on the weekends. When you’re running a business, there isn’t really any time you are away from work.
As an entrepreneur, you’ll have to give up time with your friends and family. You’ll go to fewer events, and you’ll probably miss out on things that are important to you.
You’ll give up a lot to run a business, but if you’re willing to make sacrifices, it’s worth it. You get to build a business and make it grow.
Mike Kappel is the president of Patriot Software, LLC., which develops online accounting and payroll software for small business owners. He has also founded four other successful small businesses, and he is passionate about helping other entrepreneurs find their way to successRead Full Bio