Starting your own business is both exciting and rewarding, but for many people it can be a daunting experience. It can also involve a number of risks, so it’s important to understand the issues and challenges involved before taking the plunge.
It is not enough just to have a good business idea. You need to be sure there is a viable market for it, and you also need to have the right skills and temperament to make a success of the opportunity.
To get your new venture off the ground, there will be a mountain of tasks to complete, research to carry out, things to do and people to contact. You need a thorough understanding of the information you need to find, and the contacts you need to make in order to pull your start-up plan together.
Whatever your personal starting point, there are some fundamental issues you need to address relating to your business idea, your personal aims and your own business ability.
You can start by asking yourself some vital questions:
Do you have the necessary capital and financial resources to start your business, to finance the purchase of any stock and equipment, and to pay your general living expenses while you go through the start-up phase?
Can you afford, and do you really want, to risk these resources? For example, you might have to take out a secured loan based on the value of your home. Have you considered the consequences of your business failing and possibly being forced to sell your house?
Do you have the commitment and self-discipline to get through potential hard times? There may be times when customer demands are particularly heavy and it will be up to you to make sure these demands are met. How will you cope with this, and are you prepared to put in the necessary hours to meet the demands of your business?
Are you confident that you will be able to negotiate with suppliers to get the best deals, be available and helpful to customers at all times, think clearly under pressure and take criticism without getting upset?
Are you confident enough about the level of demand your product or service will generate, and will you be able to assess how this might change over time so you can adapt your business operation to deal with fluctuating demand?
Do you have the determination to carry on when demand and sales are low?
While you may not have specific answers to these questions, it is very important for you to consider whether you can cope with the uncertainty involved with running your own business.
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