Entrepreneurship: Important Questions to Ask Yourself Before Starting your Own Business

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Why am I starting my own business?

Before formally becoming an entrepreneur and starting any sort of independent enterprise, it’s important to truly understand why you are choosing to go this route. Do you like the flexibility and independence running your own business entails? Maybe you hope to generate a consistent and lucrative flow of cash? Do you want to address some sort of need in a niche market you are interested in? There are an endless array of answers you could use in response to this question. The important thing to keep in mind is whether those answers outweigh the negative possibilities that can arise when running your own business.

What are my goals for the business?

This question is very much in line with the previous question, except that it delves a bit deeper into the general business plan you hope to implement. Every business needs a business plan and a strategy for it to succeed. “Making money” is simply not good enough of an answer to this question. It’s important for any entrepreneur to have structured goals to reach during his/her business’s infancy years.

What capital do I have access to?

It takes money to make money. You must carefully assess the amount of money you are willing to invest into the business, as well as develop a realistic expectation on how much money you CAN collect through loans and other investors. The type and amount of capital you have will determine what kind of business opportunities are really available to you. Through crowdfunding platforms and other modern day investing mechanisms available today, coming upon some initial capital should not be impossible.

What do I know how to do ? What are my strengths?

Are you a great promoter? Do you write really well? Are you inventive and innovative? Are you organized and meticulous in your spending? Maybe you can sell the shirt off another man’s back. Regardless of what your strengths are, it’s important to incorporate some of your own natural abilities into the business you are hoping to develop. Running a business incorporates a wide range of skills. If you are lacking in a particular skill-set, partner up with someone who may be a bit stronger where you lack.

Who is my competition? What separates me from similar businesses?

Unless your idea is one of a kind, or completely new and innovative in today’s consumer market, you need to differentiate yourself from your competitors. Eventually even the newest idea will have copycats and competitors, so it’s important to always stay ahead of the curb and develop new strategies to set yourself apart from your competitors. Use your strengths as discussed earlier to distinguish yourself from like-businesses.

Who is my customer/client base?

Who is your target audience? Who are the products and services intended for? Know the people you are servicing and appeal to their interests. If it’s a niche product or service you are trying to sell, try not to stray away from their interests entirely. Even established businesses can have trouble expanding their general audience and market, I would suggest to stay within your known perimeters until you are comfortable with your company’s current position.

Am I prepared to dedicate a great deal of time and money to this business?

For many, starting a business can be a life project years in the making. Building a business takes hours of time and dedication, not to mention thousands of dollars – if not more. It’s important to be ready for the commitment that starting and running your own business entails. If you are not ready to commit hours of your life to this venture, then you need to reconsider your venture.

If this fails, would you regret it?

Being an entrepreneur involves creating your own journey. The first step was deciding that you would not be content with living a life that was already prescribed unto you by someone else. The second step was breaking away from the formal path, and deciding to become an entrepreneur. If you failed, you should not regret the journey you have embarked on. It is a unique path that few are brave enough to undertake.

How to Start Your Business: Six Steps for Success

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Some people call it a calling. Others call it the only option. Regardless of how you put it, there are thousands of people all across the nation taking a leap of faith and starting their own business. This is a very difficult and arduous task that requires hard work, determination, and perseverance. But for those who survive beyond the bleak months or year of pain and failure, they will find themselves at the end of the tunnel reaping the rewards on their road for success.

Starting a business and becoming an entrepreneur is not easy. It takes a special kind of person to overcome the obstacles of failures and go surpass the ideas of settling when looking for success. If you are still interested in starting a business, here is a guide that will aid you throughout the process. These six steps will help pinpoint the dos and don’ts during the beginning stages of your journey.

1. Planning and Developing Winning Ideas:

The next big idea is what drives a business in the first place. Every business begins with an idea. The idea can be a variety of things. They can be something you are passionate about or they can be something that can change the course of everyday life. No matter where the interest lies, there is a way to create it into something great. Remember, Google and Apple didn’t just come out of nowhere. They came from products, or even problems, that have were the markers for their great creation. Once you have picked and assessed your idea, it is important to see the strengths and flaws of pre-existing companies within the chosen field. Understand their take on your concept. Figure out what they were missing or what you can do better, faster, and cheaper. Reflecting on those concepts will allow you to eventually market this concept into a full blown business.

2. Creating a Business Plan

Every great business has planned out the logistics and objective of their overall company. Remember, your company is a novice in comparison to both relevant organizations and competitors. At this stage, it is important you iron out some important questions that will later need answers when you full establish your business. Take into consideration these questions:

  •  What are your company’s objectives?
  •  What are you trying to do?
  •  Who are you trying to sell to?
  •  What are your goals?
  •  How much money will you need to start up? How much money will you need for the campaign?
  •  How many employees will you need to get this off the ground?
  •  What are you planning for advertising?
  •  What are your projections for month three, six, and twelve?

All of these questions can be answered in a well-written business plan. This plan does not have to be terribly long. Rather, the plan itself needs to help you figure out the path for your company and any obstacles you will need to face during the beginning stages once it launches. It will give you an outline of specific things that need to be done so that you are on the right direction for success.

3. Assessing your Finances: Determine how much you need to start

Like the famous saying goes, everything comes at a price. Besides your time and effort, there are costly expenses when building up a startup. Assess your business plan and identify how much you are going to need to cover these immediate expenses will play a large role in how your business is running by month three. Regardless of how much you have, you want to optimize your funds in the most efficient way. The idea of ‘stretching out your dollar’ will be the best mentality to embrace when launching your business. In the past, there have been many businesses that have invested much of their funds on unnecessary or frivolous expenses. By having a well thought-out business plan and a deeper understanding of your finances, you can leverage these expenses. If the expenses are more than you anticipated, take a look at commercial loans or investors. Make sure at this point that your business model is already developed and know what you will use that money prior to any investor meetings.

4. Registering your Business

When registering your business, make sure you have decided on what kind of entity and field your business is in. There are certain legal and structural logistics you need to file, especially in your taxes. Once you have determined the type of business you have, register on the SBA website.

5. Building Your Team

Now that you have established your idea, created a business plan, planned out your expenses, and registered your business, it is now time for you to think about the managerial aspect of your business. Here, think about the type of people you want and the skills they need to have to help thrive your business. If your business is for a tech company, you should be thinking about web developers and IT workers. If you business is for sales, you should be thinking of strong communicators and business minded individuals. Having a grasp of the people you want will ultimately put you at pace if growing your business.

6. Grow your Vision

Here is the stage where you have now established the team, finance, and idea for your startup. What you need to do at this stage is be a leader. Allow your team and company to run on a long-term vision and goal. Make sure you have internalized this goal so that no matter whom you talk to, everyone is on the same page for success.