Plenty of people have dreams about starting a business and becoming their own boss and with good reason. Entrepreneurship can be a fulfilling experience, and for many people, it is preferable to working 9-to-5 for someone else. Yet entrepreneurship can also be challenging work, so if you plan on launching a business, it is important to give the decision some serious thought rather than just jumping head-on into it.
There are five important questions that every aspiring entrepreneur should ask themselves before starting a business.
Question 1: The Discipline Test: Do I have the discipline it takes to start a business?
Starting a business can seem like fun when it is just an idea in your head, but in practice, it will be a lot of work. The U.S. Bureau of Labor Statistics reports that approximately 20% of new businesses fail during the first two years of being open, with only 25% lasting past 15 years of operation. If you want to be successful, you need to be ready to put in the work, so you need to consider if you will be motivated enough to push on through when the going gets tough, because trust me, they will get tough.
Test: Before you quit your job or anything practice/pretend for a few weeks what it would look like and feel like to be your own boss. See how motivated you are and if you have the discipline to do what you need to be successful without personal excuses. You are now technically your own boss so assess yourself and see if you have what it takes to be disciplined and self-motivated.
Question 2. The Idea Test: Do I have an idea that is amazing enough to attract customers to my business and leave my competitors behind?
So many would-be entrepreneurs go into the market convinced that they have a great product or service to offer, only to find out that no one really wants that product or service. This is why research is key to success: by doing your homework and researching your market, you will know what your potential customers are looking for and what your competition looks like. From there, you can determine if you have something with lasting value.
Test: Talk to friends and family about your idea and see what they think. Don’t be afraid anyone will steal your idea. Focus on getting feedback and information. Make sure you can take on critical responses so you can adapt. Also, be open to judgmental input which is all part of getting critical feedback. If you can’t handle the feedback you should reconsider moving forward.
Question 3. The Mentor Test: Your willingness and ability to seek out and successfully engage with a mentor who can help you succeed?
Even if you come in prepared with the necessary research, you’re inevitably going to make some mistakes as a first-time business owner. Some people are content to face these challenges alone, but the most successful entrepreneurs are the ones who seek out the expertise of others to support them in their endeavors. People who are too proud to seek help aren’t likely to last, so if you don’t already have mentors to rely on, you need to be ready to find them.
Test: See if you are ready for a mentor by presenting your idea and the story behind why you want to build your company. Doing this is the first step in being successful at selling your vision and encouraging critical feedback. This is extremely necessary if you want to build a business.
Question 4. The Passion Test: Is this a business that will make me happy, and proud and lead toward my life goals?
For some people, a business is their passion, something that they want to fully dedicate themselves to. For others, it might just be a hobby or a way to make some extra cash on the side. Before you start a business, you should have a clear sense of why you want to do it and what you hope to get out of it. If you are passionate about starting a business, it is worth the effort, but if you are only looking to make gas money, you aren’t going to be inclined to do the work needed to make a successful business in the long term.
Test: Gauge your passion and love towards the business during your research, review, and experiment phase. Please only work on businesses you are passionate about. Don’t spend your time doing something just to make you money. Passion will not only feed you with money it will feed you with success.
Question 5. The Money Test: Do I have adequate financial support to start a business?
One of the most common reasons that a business fails early on is simply that the money ran out. There are many reasons the money might have run out, but often comes down to an inability to find proper funding. Before even considering launching a business, you need to know how expensive it will be to start and operate, then determine if you have access to the funds to manage these expenses. Do you have investors lined up, or perhaps some financial support from friends and family? If not, you might need to take on another job to make your plans work.
Test: Do all your financial costing before you spend a cent. Ensure after purchasing everything you need to start your business you still have enough saved to support your living expenses. Make sure you test the money factor to make sure you will be profitable sooner than later. Being financially responsible is key to growing a successful business. So make sure you test your accounts to ensure this is a venture you can afford.
There is always going to be some level of uncertainty when starting a business, but if you answer these questions honestly, you can get a good sense of whether you’re ready to be your own boss. If you ARE ready, it’s time to start planning and getting your business in order. But if you AREN’T, don’t be discouraged! You might simply need more time to get prepared.
I hope you found these tips helpful. Be sure to share this with others who are thinking of starting a business. Stay blessed.
Stay blessed,
Chris Folayan
Award-Winning Author / Serial Entrepreneur / Founder