Submitted by Melissa Wildstein on | 0 Comments
You've got a great idea and that start-up mentality, drive and passion but are you really ready to start your own business?!? How do you know when the time is right? We asked entreprenuers to share their thoughts about when it's the 'right time' to start your own business. There are some great tips and ideas to consider here - but the gist of what they've said? Quit thinking about it and DO IT already!
Quite frankly, I find roughly 40% of my small business clients are straddling the fence on this issue, particularly start-ups. Many are working at a regular employed position while developing a business plan, market research and an approach to financing that will justify a hard to achieve loan. Others are starting their own enterprises slowly while continuing to work as 1099 contractors or temps. I suggest the need to be versatile in this area during these tough economic times.
- When you have a clear visualization of specifically WHY you want to be in business for yourself;
- When you have someone who says "I'll buy that!" and they aren't friends or family;
- You have means to support your family (including healthcare) while you get started.
Notice that I didn't say, "have a written business plan" or "found financing." If you are really serious about being in business for yourself, you just have to do it. From there it is managing risks (both personal and in the business you choose). If you really have the drive, you will run your business when you get home from work. If the idea is sustainable, you will get to a point where you can do your passion full time and pay yourself. If neither of these situations materializes, then you might have a hobby rather than a business. This is OK, as long as you realize it and treat it as such.
When your gut feeling says it is, when you checked the daily planner for the right planetary alignment and it's pretty much all clear, when you feel you really have no other choice because the other option is driving you nuts...may I suggest reading a book if you are reluctant? I recently discovered (call me late to the ballgame) Finding your own North Star by Martha Beck and its sequel, Steering by Starlight. I guess it's never too late. Just started my own business (besides two other activities) this year myself.
The right time to start your business is when:
- You have something to sell that your potential customers want, and you know how to reach them, and sell to them
- You can sell it to them to them at a profit
- You can deliver it to them in a way that keeps them happy.
- You can sell enough of it so that the profit will provide you a living
Anything else is a hobby or a charity.
Now some people say that you can't expect to make a profit immediately. And if you're well capitalized, you can afford to build up slowly over time. But you've got to see a clear--and short--path to profitable operation. One of my rules is: Spend no overhead before its time. So don't spend a lot on infrastructure, or permits, or anything else, till you know you've got a profitable business. Spend your money on developing what you want to sell, and on marketing, so that you generate positive cash flow from the git go. Everything besides this is fluff.
You will feel it. When it makes you sick to your stomach to go into work and have to tell someone every time you need to go to the restroom. Planning is important- it is- but also is execution. Sometimes you will hear people say they are waiting for the right time to leave their job- there is never a right time. You could have saved up money, created a plan, leave your job, then poof- something goes wrong. I saved money, left my job, then my car completely broke down without warning- 75% of my saving gone to get a new one- go figure. You have to plan, then you NEED to take actions. Goals.Strategy. Action.
You'll just know. There is never a 'right' time and there is always a reason not to if you look hard enough. When it's time, it's time. Just Do It!
- After you've done the necessary research to ensure the viability in the current economic climate.
- After you've written both a business and marketing plan; this will allow you to see areas you need more info on.
- Once you've found something you're really passionate about. I'm a firm believer that it's difficult to sustain long-term business if it's not something you care about.
- Finally, once you've done everything else, go with your gut. You have to trust your intuition in deciding that this is the right decision for you. Just be sure you have the answers to the Who/What/Where/When/How as much as possible, anyway, before going forward with it. You really need to know what you don't know.
I find that people start businesses for two reasons
- Need
- Desire
The need is driven by a need to earn an income which doesn't look as if it will come quickly from the job market. If you're in this position, then I'd say sooner rather than later as it will take some time and money to market your business, even when you are clear on the concept. One lesson I heard was that you shouldn't be trying to sit on the fence and think, "I might start a business" or "if the right job comes along, I'll take that." make your decision and commit to it.
Desire comes from people who a strong motivation to create something special because they've seen an opportunity which they believe can be lucrative or because they've come to accept that employment is no longer for them. If you've got strong motivation, then look carefully at what stands in your way and if you can see a resolution to all the obstacles, it's probably time to get on with it. Opportunities can be fleeting and it would be sad to look back and think, "if only I'd..." One the other hand if you're stuck in a job you don't like and want to get free of the burdens to be your own boss, you need to find the right opportunity and that can take time. You can be building up your resources - in terms of cash to invest in the business, relationships and skills needed to make the business a success.
Ultimately I think you have to listen to the voice in your head - and get the thoughts down on paper because they may conflict - and the feeling in your stomach.
I was at a local breakfast meeting for what was supposed to be a networking meeting for entrepreneurs but found out that no one there was an entrepreneur. All they talked about was "risk" and "I wouldn't do it because I don't have the motivation". For some people like myself, we really have no other choice but to start our own business. The place where I currently live there are no jobs so what am I to do to make a living? Starting a business is not as complex as one might imagine it being. Just have to go out and do it. There are plenty of opportunities out there.
As a Business consultant I specialize in business start-ups. One of the most common factors I noticed with a lot of my clients is their dissatisfaction and restlessness with the norm and wanting to do more with their lives. When you discover a deep passion for something, it is worth to stop and think of what you can make of that burning desire. It doesn't necessarily mean you have to quit your job but maybe time to dig deeper and find out how you can turn your passion into profit. Through research and evaluation of your strengths and weaknesses, you will hopefully come to a place of realization and fulfillment sooner than later.
