Starting a business can get very exciting, especially when you’re thinking about all the money you’re going to earn! But before you can even start earning money from your business, there’s a lot to do — like shelling out money from your pocket, setting up a plan, and hiring people to help, etc.
As it turns out, there are a lot of expenses you have to make. There’s no assurance your business will succeed. It’s true what they say that putting up a business is a risk. You can be spending a lot of money on an unsuccessful venture. But it happens.
A lot of businesses fail. Statistics show that in the first year of business, 20% of startups fail. And it gets worse as the years go by. 30% fail in the second year of business, 50% after five years, and 70% in the 10th year.
You might be asking why startup businesses have a high percentage of failure. It all boils down to one reason: they weren’t ready. Being prepared before starting a business is crucial. If you don’t undergo adequate preparatory steps, then your business is bound to fail.
So before you even start searching for office space in Downtown Orlando, make sure you’re ready. Here’s how to know if you’re prepared to start your own business.
You have experience
You can’t just jump into a business venture without knowing what you’re getting yourself into. That’s the problem with many business owners. They don’t know the process. Before you even consider starting a company of your own, you need to evaluate yourself.
If you have experience in the nature of the business you plan on starting, then you’re likely to know the ropes. This will help you succeed in your business. If you don’t have the experience, then focus on skill-building first. Get a job where you can learn and grow your skills and experience. That way, you’ll know what to expect and how to deal with different areas of your business.
You have capital
Putting up a business is expensive. You can liken it to having another child or dependent. That’s because you’ll be shouldering all initial expenses to be able to start your business. To do this, you need capital.
Consider the nature of your business and what expenses you need to cover. Then, compute your income or available savings and figure out if it’s enough. Many businesses start well but are unable to sustain themselves because of alack of capital. So you have to make sure you’re able to sustain your business with the resources you have.
You have a market
The three ingredients of a good business are passion, a good product, and a market. Let’s say you’re passionate about fitness, so you decide to come up with portable gym equipment as a product. You have to find out first if your product is something people need and want. If you don’t have a market for your product, no one’s going to buy it.
Every entrepreneur knows that a successful business gives their market what they need. No matter how amazing or high-tech your product is, no one’s going to be interested if they don’t see the value of it.
Although starting a business is exciting, you can’t do it unprepared. After all, no soldier goes to war without first undergoing military training. Consider these things and ask yourself if you’re truly ready to be the CEO of your very own company. Remember, it’s a huge responsibility that could shape the rest of your career.