There are many reasons for starting your own business. You may have a great business idea, want to share an innovation or you may want the independence that comes from working for yourself.
This section offers a step-by-step guide to help you make an informed decision about starting a business and determine whether or not it is for you. If you decide to go ahead, you will find them a useful guide at every stage of the process.
Self-Assessment
Running your own business may seem like a very attractive prospect – being your own boss, making all the decisions. There is no doubt it can be very rewarding. However, achieving success can be a long, hard process. You need to approach starting a business with your eyes open.
The first question you need to ask yourself is why you want to own your own business:
Are you frustrated with your present job?
Would you prefer not to answer to others?
Would you like to break out of the 9 to5 routine?
Do you want to improve your standard of living?
Do you have an idea that offers something new?
There are many positive reasons for starting your own business, but remember that many of them may also have a downside. For example, escaping the 9 to 5 routine may mean you actually need to work longer hours until your business is established.
Is it right for you?
Appraise your strengths and your weaknesses. Take the time to look closely at yourself. Self-analysis is never easy so seek the views of your partner, relatives and friends. Be honest in your appraisal and consider what others have to say about you. Make a list of your work experiences, hobbies, interests, and acquired skills. You are preparing your own CV so be careful not to exaggerate and keep the information honest and objective.
After completing the list, use it to assess what you can bring to your new business and where your interests lie. Use it when selecting the type of business you will launch.
Also consider the following:
Are you a self-starter?
Can you make decisions?
Can you stay the course?
Do you have the support of your family?
Are you good at handling responsibility?
Can you organize yourself and others?
Can you lead and motivate others?
How resilient are you?
Can you make work fun for yourself and those around you?
If you can truthfully answer yes to all of the above questions, you are probably the right kind of person to start a business.
If you are unable to answer yes to all of the above questions, it does not necessarily mean you won't succeed. However, you should consider seeking help from someone whose talents complement your own.
Personal Circumstances
Before starting on your own it is vital to consider your personal circumstances:
What is the minimum amount you need to earn to maintain your current lifestyle?
How will you finance your lifestyle until your new business is established?
Can you tailor your lifestyle if required ?
Is this the right time in your life to embark on something new?
What financial contribution do you need to make toward starting your new business and can you afford it?
It helps if you have some savings to rely on, but you also need to have a survival plan in place that will see you through the establishment phase of starting a business.
Security
