Find out what are the 10 top-most signs that you are ready to start your own business and some tips to prepare you for the jump.
As you probably already know.
Starting a new business can be both scary and exhilarating.
There are a million possibilities available.
From tremendous success (did somebody say Google?).
To colossal failures (kinda like Myspace, oh wait, they failed too).
These two possible extremes leave many would-be entrepreneurs in the valley of decision.
And keep them from taking the final step to becoming an entrepreneur.
In this article, we’ll look at 10 signs that prove you are ready to launch out and start your own business.
Even if you don’t see all these ten signs in yourself.
It’s time to pay attention to them.
Table of contents:
10 Signs You’re Ready To Start Your Own Business
- You’re In Love With A Problem – Not A Solution
- You Have Clear Goals For The Future
- You Don’t Have Any Debts
- You Have Other Financial Resources
- You Feel The Need For New Challenges
- You’re Well Educated About Entrepreneurship
- You Have A Good Support System
- You’ve Made A Proper Research About Your Market
- You Have Good Connections In The Right Places
- You Understand The Risk Of Starting A Business
Let’s get started!
1. You’re in Love with A Problem (Not a Solution)
Any successful business idea thrives on solving a problem.
You have to see a need.
And be passionate about meeting this need.
Passion is the lifeblood of an entrepreneur.
You have to find something that you are passionate about.
Don’t make the mistakes many other people make.
By running with a solution that they think will make them money.
It almost always leads to failure.
Let’s take the example of two potential entrepreneurs.
Both of them are planning to go into making and selling vacuum cleaners.
One in love with the solution, that is, selling vacuum cleaners.
The other is in love with a problem, that is, eliminating dirt at home.
Which of these entrepreneurs do you think will succeed?
It might not seem very obvious.
But it’s the one who’s in love with a problem will.
Because he’s passionate about solving a problem.
He’s likely to be more innovative.
This will make him get more customers.
And thus, become more successful.
So, if you are passionate about a problem and seeing it solved.
It might be time to start your own business
2. You Have Very Clear Goals For The Future
As a business owner, you are responsible for the future of your company.
And everyone involved in it.
Thus, you must have clear cut goals about the future.
Many people may go along with life.
And whatever circumstances that happen to them.
But as a business owner, you don’t have that luxury.
You must know what motivates you.
And what you want your future to be.
Take a critical look at your motivations for going into entrepreneurship.
Do you want to be an entrepreneur because you think entrepreneurship is great?
Or are your motivations more centered on what you want out of life?
You alone can answer this question.
However, as you go on to start your own business.
Don’t be discouraged if the first phases of your business don’t match your expectations.
The business world is extremely volatile and unstable.
But by continuously improving yourself.
Your chances of success increase drastically.
3. You Don’t Have Any Debts
Starting your own business can be expensive.
There are so many things that you have to purchase, rent or pay for.
Ranging from office supplies, business equipment and other inventory that you may need.
Apart from this, you may still need to offset other start-up costs.
These may include business formation, legal fees, registrations, and taxes.
Clearly, you’ll have to spend quite a bit of money to get your business up and running.
Therefore, this shouldn’t add to any personal debt.
You must be financially prepared to start and run a business.
If you are still paying off student loans, car payments, credit card or some other type of debt.
Then you might not be ready to start your own business.
A common reason why businesses fail in their infancy is the lack of operating capital.
It’s only wise that you don’t start a business.
Until you are sure that you can afford it.
If you have outstanding debt.
Eliminate them before you contemplate on starting a business.
The snowball method is a good way to pay off multiple debts.
Using the method, you create a list of your debts.
And then start paying them off, starting from the smallest one.
Once that one is done, increase your monthly payment.
And then move on to paying the next larger debt.
You can keep doing this till all your debt is significantly eliminated
4. You Have Other Financial Resources
While it can seem romantic to jump into a business head-first.
But without a backup plan for your income, it seldom ends well.
By this time, you should have an idea of how much it costs to start and run that business.
And you should also know if you need an alternate source of income.
That can keep you afloat.
In the case that the business needs more money than is expected.
Or does not do as well as anticipated.
You must be able to determine just how much you need to run your business.
And still live comfortably.
You might need to keep your day job.
Or get a part-time job in a separate field.
Whatever you decide to do.
The goal is to ensure that you can afford to run the new business.
Chances are, it might take some time to meet your sales goals.
Or achieve your target profit margin.
And once the business is up and running.
Always have a separate emergency fund for yourself and your business.
Don’t make the mistake of mixing business and personal assets.
Don’t pay personal bills with business money and vice versa.
Having a separate emergency for business and personal life helps you when things are tight.
5. You Feel The Need For New Challenges
Another great sign that you are ready to start your own business.
We have many people who feel unfulfilled in their day jobs.
And this isn’t about having a few bad days at your job.
It’s a state where both good and bad days don’t feel fulfilling at all.
It may be a sign that you should switch to entrepreneurship.
And get a chance to do work that you care about.
It could be helpful if you are adventurous.
And feel like you want to experience new and interesting challenges.
A new challenge can range from anything like having to organize your schedule daily.
To learning how to deal with customers and so many other things.
The most important thing is that you are ready to experience new and exciting challenges
6. You’re Well Educated About Entrepreneurship
Just like every other professional endeavor out there.
Entrepreneurship requires that you to learn about it.
Being passionate about a business does not mean that you know how to run it.
It’s important that you take time to learn about entrepreneurship.
And how to run a business.
Even if you cannot afford an MBA or an official course on entrepreneurship.
You can start by getting books and other resources.
Just make sure they are written by people that have been successful in business.
There are several things that you’ll face in your new business.
But being well-educated about entrepreneurship will help you navigate these issues skillfully.
So, do you consider yourself well educated about entrepreneurship?
If your answer is yes, then you are probably ready to start a business.
If the answer is no.
Iit may be wise to hold up starting that business.
Snd learn about entrepreneurship first.
7. You have a Good Support System
Contrary to popular opinion.
Being an entrepreneur does not mean you have to do it alone.
You could be the only one making critical decisions for your business.
You still need the help of your family, friends, mentors and other resources.
To guide you through this tough desicion.
And be there to support you when you fall.
And trust me, you will fall.
Those around you must know about your desire to be an entrepreneur.
And even if they don’t understand or aren’t confident about it.
They should be able to support you throughout the process.
Sometimes, it can even mean them generating additional income.
While your business finds its feet.
During other times it might simply be them listening to you while you make your decisions.
Anyhow it turns out, having a support system is a critical part of building a successful business.
8. You’ve Made a Proper Research About Your Market
Market research is a critical part of setting up a business.
Your business is doomed to fail if you cannot conduct thorough market research.
You should research about your audience.
To know the products and services they need.
Take the time to find out who your customer is.
As well as what they want and why they need it.
You’ll need to stay abreast of technology and industry trends.
And be able to analyze and predict the behavior of your consumer.
Proper market research will require to test every assumption that you have about your market vigorously.
By observing consumer behavior and interpreting it.
You can decipher what your customers want and what they are willing to pay for.
Once you understand your customer demographics.
You can provide them with the products and services that match their desires.
So, ask yourself, have I analyzed my market accurately?
Can I say with complete confidence who my customer is and what they want?
If your answer to this is not an emphatic yes.
You may need to conduct proper research before starting a business.
9. You have Good Connections in The Right Places
When it comes to setting up a business.
Be aware of the laws and rules that govern business operations in your locality.
There are ways to set up your business.
So that it can enjoy asset protection, tax benefits, and limited liability.
To find out all this information and use it in the most profitable ways.
You may have to talk to the right people in the relevant places.
Do not underestimate the power of the right network.
From lawyers to leaders in business and government.
Their experience and the influence they have will be a good thing for your business.
So, you must cultivate the right network with the right people.
Think about it.
If you need legal, financial, corporate or government help in your business.
Do you have someone that can help you?
If you don’t.
Start cultivating such relationships now.
Even before you officially set up your business.
10. You Understand the Risks of Starting A Business
Starting a business is risky.
Denying this is akin to an ostrich sticking her head inside the sand to avoid a predator.
It might make you feel better.
But it ultimately does not help you or your business.
It is important that you fully understand the risks associated with starting a business.
Analyze the risks first.
And come up with a plan on how to manage them
Then you can happily say that you are ready to start your own business.
Now, you might be aware of some of the obvious risks.
Risks like losing all your capital, running into legal troubles, etc.
Some other risks are not so obvious.
For instance, what is the stance and direction of the government concerning the industry you want to operate in?
What about your competitors?
A SWOT analysis can help you identify and mitigate both obvious and hidden risks.
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
Using this framework, you’ll consider everything that can affect your business.
And make provisions to eliminate or at least mitigate the risks.
Starting a business is a serious business (pun intended).
It is therefore important that you cover all your bases.
Before launching out.
These 10 signs are a good marker.
Use them to help you determine how ready you are to start your own business.