You want to start your business, but you’re wondering if now is the right time. Your entrepreneurial spirit urges you to leap, but are you prepared and ready?
A few signs indicate whether you’re ready for the highs and lows of business ownership. Here are six signs you’re ready to take the leap and cut the red ribbon on your own company.
You have a plan, and you know it’s marketable
For a business to succeed, it needs a solid plan and a marketable idea. Cashing in the 401(k) to start a new venture on a whim does not often make for a successful formula. But, seeing a need, knowing how to fill it, and how to finance it makes for a much better groundwork.
You understand your competition
Even the best businesses have competition. Having a deep insight into the market and how you will fight for your share of it is a vital sign that you know you’re ready to take the plunge.
You’ve researched your funding options
Starting a business requires capital. If you don’t have the luxury of gobs of cash for self-funding, you’ll probably have to look to others for help. Venture capitalists may have interest, but that usually only happens when an angel investor or a large firm sees a considerable upside.
For many, the best path to startup funding is by investigating alternative lending solutions like the marketplace at AdvancePoint (advancepointcap.com). You won’t have as long of a delay as you would with other types of traditional funding, and the funds could be in your account by the next day.
You’re ready to be your own boss
The boss doesn’t always have the luxury of taking a sick day or not checking their emails. With all your new responsibilities as a business owner, you will need to hold yourself accountable. That’s not always easy to do, but it’s essential for running your business well.
You’re ready to take on risk
Even if you have the best idea and the most healthy market, each business venture carries some level of risk. Understanding that the winds of fortune may blow against you is beneficial. You may even want to consult with a business lawyer to figure out how to create a firewall between the business’s money and your own.
It doesn’t mean that you’re setting yourself up for failure. Instead, it’s taking a measured and realistic approach. As of 2018, nearly 10% of all small businesses fail each year.
You excel at management
To run your business successfully, you will need the chops to manage the day-to-day operations, yourself, and your employees. Be honest about your capabilities and your people skills.
Will you need a manager to interact with the employees while pulling the strings? Or can you act as the primary interface in the office? Will you do your own advertising, or will you need a digital marketing agency?
Before you go
Don’t forget that there’s always more to do for a business owner. You always want to strike while the iron is hot and your idea is fresh. These six signs indicate that you’re ready to start a business, but they’re just the first few steps on the road to success.