How Do I Know If I’m Ready To Start A Business?
You've had a business idea for a while now, but you're not quite sure if you're ready to jump in. It takes serious consideration to begin a business and the five points below can help you decide if you’re actually ready to get going.
+ You’ve Bulked Up Your Savings
If you have savings set aside to help start your business and float your personal expenses while you grow, you’re at a good starting point. While research suggests having at least six months of savings stashed away, consider putting aside a year's worth. You can't tell what financial emergency lies ahead for your health, your family, or your home, and you'll sleep better knowing you've got those covered.
What’s also important is to get an idea of how much your business is going to cost to operate for at least the first year. Most businesses do not turn a profit until that time, so construct your financial projections and prepare for the tough road ahead. And if you do not have the cash on hand to cover your business and personal expenses for a year, consider applying for a loan—but only after sitting down with an accountant or consultant to make sure your business is able to become profitable.
+ You Have The Support of Your S.O.
Starting a business is an enormous undertaking and having the support of your partner is essential. Every business owner faces uncertainties; it goes with the territory of starting a business. But those uncertainties can take a serious toll on your physical and emotional well-being.
Writers at Inc.com suggest that having open, honest communication with your partner is a tremendous help. You can talk about challenges together, work out how you’ll overcome them, and stay on the same page when financial decisions are on the table. A significant other who believes in you and what you're trying to accomplish is like having gold in your pocket—you don't want to be without it!
+ You Know The Market
Confirming that people want what you are selling is not only a great feeling, it's also the impetus needed to take action. Before investing tons of time and money into starting a business, first learn if there are people who want what you're offering. Too often is this step ignored by new owners, which could be part of the reason why 79% of businesses survive the first year, and only half make it past five years.
Prior to opening your doors, talk with your target market. What issues are they having in relation to your product or service? How could they be better served? Ask questions, get beta testers, and contact your local SBA for help obtaining market research. This knowledge helps you make decisions based on facts rather than just intuition. Too often small business owners do this in reverse; creating a service or product before confirming that there’s a market for it.
+ You're Motivated
Have you been dreaming of starting this business for basically forever? Are you ready to be your own boss? If you’re passionate about the product, interested in tackling the trials that come with self-employment, and you’ve got the mindset to connect the dots, you’re in the best possible place to start a business. Entrepreneurship is no joke, but if the fire is inside you and you’re committed to setting the market ablaze, you owe it to yourself to make it happen.
+ You’ve Found Your “Why”
Making real, positive change in the world is what leads many business owners to success. Whether you’re impacting the trajectory of an entire industry or solving a problem that you can’t believe nobody’s thought of yet, you’ve got the passion for the action. Especially on the tough days that inevitably find you, your passion will sometimes be the only thing pushing you forward.
Business without passion is simply an empty shell, and customers can see right through it. In fact, research by Stackla found that a staggering 86% of consumers say authenticity is important when deciding what brands they like and support, and 57% think that less than half of brands create content that resonates as authentic. Your passion and genuine interest in what you’re offering will not only sit well with consumers, but will also lead to greater brand support.
+ You’re Ready
Knowing when you're ready to start a business takes self-awareness, commitment and focus. Be honest with yourself about what you want, and recognize the signs that now is your time. If you’re ready to take the plunge, contact Ivy + Atlas to learn more about how you can start and grow the business of your dreams.