Test Your Luck - How to Know if You Would Be Good at Running Your Own Business

Dixie Somers

September 18, 2014

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Starting your own business is a stressful, rewarding, and massive responsibility. As you well know, many businesses don’t make it past the first year, while other start-ups skyrocket to fame after a few short months. If you feel the entrepreneurial flame burning within you, you might still feel hesitant about starting your own company. You might ask yourself, “Can I handle it?” While it is hard to know until you try, there are a few things you can do before starting a business that will help you get an idea as to whether you are cut out to be an entrepreneur or not. Keep reading to learn about a few resources that will allow you to have a “trial run” in the business world before you jump in for yourself.

Low-Cost Businesses: Embracing the Internet

While many traditional businesses do have high startup costs, there are a number of online businesses that can be created for a very low price tag. For example, starting a web development company on the Internet is as simple as creating a website with a portfolio. For the price of annual web hosting, college students can test their ability to successfully manage a business. If you are interested in starting an online-based company someday, this is the perfect project to test your computer, management, and creativity skills. Plus, if you do end up running your own business someday, you’ll be proficient in the online portion and won’t have to hire someone to run your website in the beginning when you are low on funds.

Providing a Service Online

In addition to web design, there are other online business ideas that won't cost college students a lot of money. Programming, mobile app development, writing, translation services, transcription services and online tutoring can all be completed from the comfort of one's dorm room or kitchen table. By working with local or even national brands, you can provide an online service that will help you get the feel for creating a positive brand for your company, as well as a strong online presence. Whether you help companies with social media, building their own apps, or writing content for them, you’ll be able to use all of those skills for your future business. Additionally, you’ll have a good idea of what kinds of online follies to avoid when building your business and promoting your brand.

Franchising

If you are worried about striking out on your own, franchising offers great backing to fuel your entrepreneurial spirit, and catch you if you fall. A franchise will already have a business plan, resources, and supplies set up for you. Yes, you’ll still have to work extremely hard, and you’ll still need to put up some of your own money, but the franchise will partner with you and lighten the load a bit. For example, Student Works Painting is a franchise of painting contractors in Edmonton who provide young people with the opportunity to run their own painting business, and manage their own team. In this type of program, the franchisee is essentially running the business under the umbrella of the franchiser. This is the perfect environment to test out your business management skills and see if you can manage money, handle stress, and solve problems efficiently.

Online Retail Stores: Drop Shipments

It's possible to run a retail business for almost no upfront cost. For example, many online retail businesses use a concept known as drop shipping to manage their inventory. With drop shipping, an online store doesn't have to maintain an inventory. Instead, items are shipped directly from a third-party warehouse to a customer. While these sites appear to show an inventory, they are only used for processing payments. In many cases, companies that use drop shipping add an additional 20 to 30 percent to the price of items they sell. Since drop shipment services usually don't charge a membership fee, it's often possible to set these stores up for a minimal cost. If you plan to open your own retail store in the future, drop shipping will be great practice to help you test the waters.

With the wide variety of digital technology, it is easy to set up a business or provide a service with a very low startup cost. By using the methods above, you’ll be able to get a little experience in the world of running your own business without taking serious financial risks. It is wise to have a learning and training period before launching your own business, because any mistakes you make won’t cost you your life savings, or mean that your company fails. Use these resources to get your feet wet and see if the entrepreneurial life is the life for you. You might even find some hidden talents along the way that redirect your career path.