Many new businesses are born in recessions as people make the decision to strike out on their own rather than pursue employment. Starbucks, PetSmart and Intuit were started during a recession. Your own business puts you in complete control of your time, lifestyle and of course, income.
Starting a business takes careful consideration. The business must “fit” your life situation. And it must “fit” you – your work style, personality and interests. Oftentimes the emotional excitement clouds good decision making – so take your time, and be bluntly honest with yourself.
Questions – Questions – and more Questions: What should you know before you strike out?
Is the market you are planning to enter growing, declining or in the midst of significant change?
See many video stores anymore? No. That technology changed almost overnight and the video store is for the most part, history. On the other side, personal service businesses continue to grow, even in tough times. Fully research your idea and the market you will sell to (yes – in any business, you must sell).
Who will be your completion – (and yes, you want competition)?
Competition is good. It is an indicator that there is a market and you need to determine how to be better to get new customers, or steal customers from competitors. Determine what advantages competitors offer – then beat them with more. Understand their pricing, and provide a better value or better deal.
Have you done your homework?
Fully understand licensing, permits or other requirements that might be needed. Know tax and record keeping requirements. Some municipalities require permits to operate a business and some have zoning regulations. Your product or service could be subject to sales tax, and there are registration and reporting requirements for this – and penalties if you mess up.
Can you get by?
You need to know what you need to earn to meet your fixed expenses – and then have the resources to meet these. Know where necessities things like health insurance will come from, and at what cost. Roll up these expenses, and you have your first goal to achieve!
Ask yourself — can I handle the uncertainty that comes with any new business, can I “sell myself” and my offerings comfortably and am I willing to do the gut-check required?
By far, the most important questions. There are many ups-and-downs to being in your own business, especially early on. There will be good days, and days that might tempt you to jump off a cliff. You will ask yourself “… why did I do this?” – this is to be expected.
No matter what business, you need to be able to sell. Maybe not the stereotype people think selling is, It might be more educating a customer. Still sales however – just another form. If this makes you uncomfortable, and do not have a partner who is comfortable selling, your own business is likely not for you.
There will be the days that motivate you – days when you are in full control of your life. These days will far outweigh the on-the-edge-of-the-cliff days. That is truly motivating. The best of luck and prosperity!