There’s a mountain of work waiting for you when starting your own business. But before digging in and getting your hands dirty, carefully answer the following 4 questions to assure that you are ready to embark on the entrepreneurial journey.
Am I mentally and financially prepared for no income during the startup phase?
We all have the dream that our new business will bloom like mushrooms after rain right after we open shop. However a dream is just a dream. Many entrepreneurs do not realize the hardships they will encounter during the startup phase of their business. As Denis Waitley said, expect the best, plan for the worst, and prepare to be surprised. If you are bootstrapping your business, prepare yourself for early hurdles and the possibility that getting your first clients will take longer than a few months.
Does my business idea have a market?
The business idea is like the entrepreneur’s baby. Of course everyone thinks that their baby is phenomenal, their friends and family also wouldn’t say otherwise. But the reality only starts to hit when your mental child enters the ruthless business world. To make sure that your investment doesn’t go wasted, research your potential market carefully. And not just the superficial 10-question survey that you send out to friends, contact people that fit your target customer profile, dig out their real pains and plot a solution to their most dire problem.
Can I test the viability of my business idea with minimum investment?
Start lean. Before going all in, think of ways to start small to test the viability of your startup business. This especially helps if your business idea is new and innovative. It might be messy and not the business that you have in your vision, but starting small, learning and making tweaks to the business model along the way is the fastest and safest way to start a business. Groupon is a prominent example. When the founders just started out, they didn’t hire developers to create any expensive code; instead their website was a simple WordPress blog and the founders rolled out of bed every morning at 3AM to send out customized discount coupons to thousands of subscribers.
Where can I get help for my business?
Even though you are planning to be a one-man show, when running a business there are times you will need an extra hand. It may be a business advice, financial help or labor contribution. Have a clear plan in mind (and preferably on paper) to locate and get help immediately when needed. Think of a situation when you suddenly receive a lot of orders from clients and you have maxed out your capacity. You also don’t want to turn the clients away for fear of losing them forever. If you have already made good connections and preparations with certain freelancers, this situation will go smoothly and your business might even get on the fast growth track.
Starting your own business in today’s fast changing world requires not only persistence but also flexibility. Instead of a traditional 20-page business plan, a better way to prepare for your business launch is to have a dynamic plan, such as a business model canvas and solid answers to the 4 critical questions above.