More than 50 percent of small businesses fail within their first four years of operation. A major part of the reason why this is the case has to do with not coming through on one or more of the following areas. If you cannot answer these questions confidently, maybe you need to do a little more thinking before getting on the road to owing your own business. It takes a lot of hard work, intelligence, and luck to reach a destination of entrepreneurial freedom and small business success. Ask yourself these five questions and think thoroughly about the answers you give.
#1 Do you Have the Drive and Determination needed to Succeed
This is not meant as a vanity question. Do you really believe that you have what it takes – this is perhaps more important than any other question. Though owing your own business sounds rewarding, it is very challenging. An entrepreneur works 24 hours a day, 7 days a week. This will be time away from family and social gatherings. Be ready for those sleepless nights and financial risks that also come with the territory.
#2 What is Motivating your Passion to Start a Business
Before embarking on the journey of entrepreneurship, know what the base motivation is behind it all. There are some people who will be motivated strictly by money, while others may want to simply participate in an area of the marketplace where they have strong interest in. There are thousands of business opportunities one can jump into, some of which are not necessarily starting a business. As important as it is to follow your passion, know why.
#3 – Do you Have the Money to Successfully Start a Business
Beyond having the drive and the passion, you need to have adequate funds to be able to launch a business venture including the financial capabilities to launch initial marketing campaigns. The first step towards this is understanding the total costs involves. Map out the full extent of that initial investment, including all purchase costs, opening inventory, and the capital you require before breaking even. This should be done long before locking yourself in to any business opportunity. Most entrepreneurs won’t have the funds needed to start a business. There’s nothing wrong with that. There are many different financing options available.
#4 What can you Learn from other Small Business Owners
Do your due diligence and connect with other small business owners in your local community. Ask them how they have succeeded and the strategies they used to overcome their struggles. This is not to say to go straight to your competitors but seek the advice of other entrepreneurs from any category of the marketplace.
#5 Will you Be Able to Garner Enough Support for this to Work
No company succeeds on one person’s effort. Despite claims to the contrary, there is “self-made”. Anyone embarking on a start-up is going to require support, be it from friends and family, or business partners who are able to offer advice, or employees. The more support you have, the less risk involved.