Some people grow up with a clear vision of the future while others take time to discover who they are and who they’d like to be. Both of these journeys are completely valid and it’s important to remember that dreams and goals can change throughout our lives. It’s part of an individual’s personal evolution, and it’s more than okay to explore ideas we hadn’t previously considered. This includes your lifestyle and relationships, your hobbies and interests and your career.
Whether you grew up wanting to be a business owner or only recently began thinking about entrepreneurship, these questions will help determine if you’re ready to be your own boss. If you’d like personalized advice about the financial elements of starting a business, please contact us. An Interior Savings advisor would be happy to discuss your needs and goals.
Why do you want to be an entrepreneur?
Before you take the leap into business ownership, ask yourself what your motivations are. Is it to pursue what you love, take control of your schedule and build something you’re passionate about? Does your business venture feel purposeful and gratifying? Are you a leader who feels compelled to work for yourself? These may be good reasons to move ahead—however, if you’re driven completely by the idea of money, power and prestige or the notion of less work than your current job, consider that none of these motivations are guaranteed.
Do you have a clear vision?
Even the best ideas can be unclear or convoluted in the early stages, so take the time to slow down and map out exactly what you have in mind. You don’t want to overthink every element to the point of self-destruction, but you definitely don’t want to rush in without a very strong concept. This advice applies whether you’re developing a product, opening a restaurant or retail store, or starting a service-oriented business. Developing a clear picture of your end goal will help you move on to the next step—your business plan.
Have you done your research?
There’s no shortage of information and guidance to help you create a strong business plan (here’s a good read on that topic) but before you start, do your research. Is there a market for your business? Who are your competitors, if any, and how well are they performing? What will your startup and ongoing costs be, and what sort of profit will be you making on various transactions? Will you need part-time or full-time staff, a physical location to work from or financial support? Have you priced out a website, branding, social media support, equipment, shipping costs or other expenses? Make an effort to examine all elements of operations, logistics, marketing, sales and finance before hitting the planning stage.
Does your business plan reflect your skills and weaknesses?
Once you’ve developed a business plan, ask yourself this: am I the right person to run this business? Do your skills and interests line up with the work you’ll be doing, and will your weaknesses create obstacles? Passion is key, but it’s only one part of becoming a successful entrepreneur. Be honest with yourself and when identifying red flags, assess the difference between a manageable challenge and a serious road block.
Do you have a strong support system in place?
No matter how independent you are, no entrepreneur works entirely alone. Before you invest in your new business, ensure that you have the right support system in place. This may include paid staff or contractors, the appropriate funding, and even an emotionally supportive partner. While friends and family may offer help out, be sure that your business doesn’t rely on volunteers—what you need is consistent, reliable support from a capable team.
Do you have access to funding?
If you’ve gotten this far and are still feeling optimistic about your proposed venture, it’s time to look at the dollars and cents of business ownership. Very few businesses can be started without a nest egg of sorts, whether it’s personal savings, private investors, a government grant or access to a loan (it’s often some combination of these things). In addition to the cost of starting your new business, you’ll have to budget for your own living expenses (particularly if you’ve left a job with steady income). Think about when you may realistically turn a profit and beyond that, when your business may be able to consistently support your and/or your family with its earnings.
If this seems like a lot of pressure, we understand—starting a business isn’t for the faint of heart! However, it’s incredibly rewarding for those who persevere and succeed. For personalized advice on the financial elements of your plan, please reach out to an Interior Savings advisor. We’d be pleased to assess your needs and find a solution that helps you become the entrepreneur you’re meant to be.