Small business ownership, creating your own job, becoming an entrepreneur—no matter how you say it, controlling your own success is very popular and very tempting. Yet, is this the right path for you? Are you ready for entrepreneurship and all it includes? Find out by honestly answering these questions.
Do I have a great idea for a product or service?
If your answer is no, that doesn’t rule out entrepreneurship altogether. You might consider the franchise model, where you take your management and ownership abilities and apply them to a tested business. Do you find yourself saying, “Yes, I’ve got a great idea” or nodding along as you read? Wonderful. Now your next step is to think of how you might convince investors and customers that this offering is the best in the marketplace.
Do I need to have a steady and reliable paycheck?
If you have a lot of bills and debt or if you get nervous at the idea of unpredictable income, entrepreneurship may be hard for you. Consider starting a side business first while holding on to your “day job.” Got a lot of savings? Comfortable with variable income? If so, then starting a business won’t be too nerve wracking for you. However, remember to discuss your financial realities with your partner or family if this new enterprise is going to impact the household budget.
Do I depend on a boss to guide my work during the day?
If you need someone to plan your day or give you a steady stream of feedback, then you might find starting and running a business lonely. If you look forward to deciding what to do with your time, organizing your work and feeling independent, then entrepreneurship could be for you…especially if you’ve been dreaming of being the boss.
In the end, if you don’t yet have a firm business idea, hate the thought of unpredictable income and need the feedback of a supervisor or coworkers, you may not be ready to take the leap into business ownership. Consider opening a micro business or a side business while keeping your day job. Build up your savings and talk to a mentor about your options. However, if you’ve got a brilliant idea, nerves of steel about pay or a healthy savings account and can function independently for much of your workday, you might be ready for the life of an entrepreneur. Start sketching out a simple business plan and looking for a support team.