I'm a firm believer in wealth creation through owning a business (full time or part time) and that's because owning a business can increase your income exponentially if executed the right way. Owning a business is also one of the key ways to build wealth ( other ways are investing in the stock market and real estate).
And if you take a closer look at the wealthiest people you know or admire, you'll find that a vast majority of them have businesses in their wealth building portfolios. However, before you jump on the small business bandwagon with your great idea, you need to take time out to answer some serious questions to ensure you are headed down the right path. Below are 7 questions to ask yourself now that you have a business idea.
"Setting up a business requires more than just a great idea."
1. Are you ready to start a business?
Having a great idea is one thing, but actually going ahead to execute on it is an entirely different thing. Once you've decided on your idea, you need to determine if you are really ready to start a business and this includes spending your time (and money) to set it up properly, getting it off its feet and keeping it running.
You also need to be self-disciplined enough to manage your business finances properly by keeping them separate from your personal finances and creating a business budget to include your startup costs and recurring expenses that you can track as time goes by.
It's important to keep in mind the early stages of starting a business, either full time or as a side hustle, are not glamorous and it might even take a while for your business to start earning money.
In this case, your passion to succeed is going to have to see you through the early days. However, if you don't really care about what you are trying to start, once the hard work really sets it, you won't be motivated and things will fizzle out. This in turn, means wasted time and wasted money.
So it's really important that as you consider starting a business you get really clear on what it is you are getting yourself into and you prepare for it mentally. The above are all key factors to consider as to if you are really ready to start a business.
2. What difference do you want to make with your business? What value will you add to your customers?
Once you've determined you are ready to start a business the next question you want to ask yourself is around the why, the who and the what. Why are you starting this business? Who will you be helping? What problem will you be solving for your customers and how will you do it?
The most successful businesses don't just focus on the sale. They add incredible values to their customers' lives and guide their customers to get to know them, like them, trust them and then eventually buy from them.
Focusing on the sale alone, for the most part, leads to know sales and you'll find yourself wondering why your great idea is not working. So take up time out to develop a strategy to engage your customers and provide them with incredible value. You can do this through your content, through your service, and through your products.
Get a notebook, think deep and write your answers and thoughts down. Do your answers make sense to you? Do you still feel good about your business idea? If your answer is yes, then you are ready. If you are wishy-washy or unsure and need more time to think, then do just that.
Setting up a business requires more than just a great idea. It requires a large amount of time, discipline, hard work, and dedication. Once you've been honestly able to answer the questions above, then you are ready to get started on your next step to becoming a small business owner which is creating a business plan and that's something you need to do before you quit your day job.
P.S. Check out our recommended reading, under the business section of this post.