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Factors to consider before starting your business

Joyleen Terry

January 05, 2017

Every employee desires to become an entrepreneur. Only the brave folks are daring enough to kiss their employers goodbye. To make it in the entrepreneurial world, you must shun the fear of losing your job to pursue invisible dreams. However, you have to plan properly before making this bold step. Below are factors to consider before starting your ventures.

Finances

Starting a business will require enough capital. Numerous people do not implement their business ideas due to lack of capital. Since you are working, that is a great opportunity to start accumulating enough financial resources to kick-start the business. Do not quit until you are sure that money will be enough to cover all the start-up costs required.  Do not save the exact amount; instead, aim a little higher.

Single or married

This move will affect your relationships too. If you are single, you are independent to make any decision that you feel is best for your progress. However, if you are married, it is important to seek the opinion of your spouse too. To make it as an entrepreneur, your partner has to be supportive. This is because he/she will also face your difficulties as they will affect finances.

Business plan

It is fruitless quitting your job when you do not have a clear plan regarding your prospective business. Understand that the plan will guide you into achieving the objectives you have set for the business. It should contain the operations and the strategies you are planning to execute. Take time to read your business plan and make certain that it is making sense before quitting your job.

Relationships

When you commence your journey as an entrepreneur, it is important to be cautious of the company you keep. It is advisable to seek the company of fellow entrepreneurs. This is because they understand the challenges of starting the business and they will share beneficial ideas too. Staying with employed folks will easily cause you to drop your business when it gets tough to seek a job.

Sacrifice

Many people fancy being entrepreneurs because of the prestige of being your own boss. However, they do not consider the sacrifices needed to make the business work. You must prepare your mind to lose relationships and sleep. This is because most of your time will be used on trying to build your ideas. However, these sacrifices end up paying off at the end of the day. Get ready to lose that sleep.

Settle your bills

Since your business is still young, it is not advisable to take any money from it to settle your personal needs. The money invested in the business is supposed to make it develop. It is prudent to take care of your bills first before starting the venture. Have enough savings that will pay your bills for at least one year.  This will give both you and the business enough time to grow and become stable.

Seek knowledge

The reason why most start-ups fail is ignorance. The idea might look good in the business plan but the reality in the market might require other strategies for it to work. You must be willing to learn more about the industry which you are venturing into. You can also read the stories of the people who have made it in that industry. Try to emulate them as you learn their secrets too.

Proper research

Before pursuing any business, it is critical to carry out a market research. This research will give you facts that will prove if the business will work or not. The research focuses on the product, the market and the target customers. By assessing these three main factors, it is easy to tell the probability of the success of the business. Therefore, take time and carry out a proper market research.

Mentors

Mentorship is very essential in entrepreneurship because of the challenges that are involved. Without a mentor, it is easy for a person to give up. Mentors have been through the challenges of entrepreneurship. Thus, they are in a better position to offer proper guidance to those that are starting. Their guidance will minimize the challenges you will go through in your journey.

Passion

Are you passionate of the business idea you are planning to pursue?  This is an important question as it determines if you can give up on your idea along the way. Passion will drive you even when the success of the idea is not in view. When you are passionate, you can easily be distracted from working on that idea. Identify what you are passionate about and pursue it until it works.

Focus

The task of starting and growing a business is very tough and it needs focus. This is because you must analyse the strengths and the weaknesses of the business. This will enable you to enact and implement effective strategies. Due to all this work, you cannot afford to be distracted. Every form of distraction should be avoided at all costs. Get an environment that supports focus.

Social pressure

You have to be prepared to face the pressure coming from people around you after quitting the job. Most people will not understand your decision, especially if there are employees themselves. As long as you know what you are doing, do not mind the pressure coming from them. Regardless of how you explain it to them, they will not understand. They can even distract you of you are not cautious.

Minimize expenditure

The moment you start the trade, you cannot afford to spend recklessly. This is because you have to spend the savings you have wisely until the business is stable enough to support your financial needs. Start preparing on how you will stop going for expeditions and visiting expensive restaurants. Only spend on the basic needs. This will prevent financial constraints.

Conclusion

The success of an entrepreneur highly depends on the quality of his/her preparation. Poor preparation will limit you from achieving the goals you had in mind. By using the points above, you will be in a better position to turn your ideas into a huge business.

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