So many of us talk about starting our own business.
Giving up work and starting our dream business.
Set up a dream business as a side hustle.
But research suggests that around 60% of new business fail in the first year.
So before thinking should you start your own business, you need to consider whether you are ready to.
Are you ready to start your own business?
If you are thinking about starting your own business, ask yourself the following questions. And answer them honestly.
Are you REALLY ready to start your own business ?
Running your own business sounds great. The idea of getting rich quick, escaping from a grumpy boss, working at home, leaving behind the 9 – 5 traffic jams and day to day grind, but starting your own business isn’t always like that.
- Depending on the type of business you want to set up, you might still have to travel to work and work 9 – 5.
- Starting your own business requires a lot of hard work and determination.
- Even starting as a side hustle, you will still have to do your usual job AND the side hustle.
Starting your own business takes a lot of hard work.
So think carefully – am I really ready to do that?
Is your idea a good idea?
You might have this amazing idea for a new business. It might be a product or service you think that people will love. But people tend to only buy things that they think they “need.” That need can be physical or emotional, but if people don’t really think that they “need” a product, they won’t buy it.
- Look at what competitors are doing.
- Ask people you trust whether they think your idea is a good one. Would they buy it? Ask for their honest answer.
- Do a bit of market research. Find out whether people would buy the product or service you are intending to sell.
Is there a market for your idea?
You might find that people like the idea of your product and would buy it. But what if a lot of other people are already selling similar products? You need to decide if there is a market for your product. For example, say you have a plan to produce a vegan cheese sauce and no one else is doing it, then there is a potential there. The vegan market is growing rapidly. However, if lots of other people are already doing it, there is less potential for you to sell your product.
If you find that there are already ten or more people offering the same or similar product, it is unlikely that yours will succeed, unless there is something amazing or different about it.
Is the market growing?
Is your product in a growth market? For example, eBooks and self-publishing is a growth market, so it is worthwhile writing or selling eBooks. (By the way, ACS offers the opportunity for people to resell our eBooks, so find out more here.)
If the market is not growing, then it’s not really worthwhile. The desire for products and services change. What was popular a year ago may not be so popular today, so consider if the market is growth, shrinking or just stable. You want to be in a growing market.
Are there any hidden costs?
You have a great idea, but didn’t realise that there are hidden costs. Perhaps you need insurances you weren’t expecting, or special packaging, or you have to undergo training to produce the goods. Make sure you are really clear on exactly what costs you will incur when producing the product or service as this will obviously affect your profit.
Are you being realistic?
It is easy to think about your amazing idea with rose coloured glasses, but if your idea isn’t actually that amazing or may not work, then consider other options. We’re not saying give up. The grass can appear to be greener on the other side, but entrepreneurs do have to work hard and have to be committed to starting their own business. BUT the rewards are definitely there if you become successful. So be honest with yourself and be realistic.
So the morals of the story so far –
- Do your research.
- Be honest with yourself
- Be realistic
You have done all this and you think you are ready to start your own business.
Should You Start Your Own Business?
Think about the reasons why you want to start your own business.
Status and Money
Status and money are important and should not be dismissed. If you want to start your own business to improve your status and your income, then is absolutely nothing wrong with that.
However, money and status does not motivate everyone and starting your own business isn’t always about money.
Other reasons include –
Wanting to be your own boss
Cox Business found that 66% of small business owners started their own business because they wanted to be their own boss.
Running your own business means that you have –
- More flexibility
- More independence
But this also comes with –
- Greater responsibility
- Greater risk
You can choose those when you work, how you work and why you work.
Starting something new can be motivational. It can make people feel creative, enabling them to do what they have always dreamed of.
Starting your own business can also lead to personal growth. You may have to learn new skills, such as –
- Promoting a business
- Researching etc
You will have to stay up to day with the current trends and opportunities in the area you are operating a business.
Starting your own business means that you have opportunities for professional and personal growth.
Make a difference
One of the other common reasons to start your own business is because people want to make a difference. They might develop a product or service that helps people. Or one that helps thousands of people.
One of the top five reasons for people to start their own business is to help other people to achieve their goals. This might be through businesses such as consultancies, coaching etc.
But it can also be through setting up your own educational business.
If you are ready to start your own business and think you should, why not consider working with us.
We offer over 700 courses and 150 eBooks for people to populate their own online school.
Want to start your own business working with the experts? Then contact us to find out more.