Part 1: Question Everything

So, you think you want to start your own business.  There are going to be a lot of road blocks in your path, and many times you are going to want to quit.  The problem for most people isn’t getting the work; it is dealing with the realities of the day-to-day that doesn’t allow proper growth which, ultimately leads to failure.  Here is some advice from people who have started their own business in the past three years.  Before you quit your job, ask yourself the following questions:

How much do you need in order to survive each month?

Why do people like the smell of a new car?  Is it because the smell itself is so good?  Maybe, but perhaps it is what it means.  Everyone wants to hold on to that smell because it signifies a new start, a new possibility and a new opportunity.  This will be the case when you start your business as well.  It’s very exciting to set up shop in your basement or in a little workspace somewhere in a popular district in town.  You’ll love it, but the giddiness will fade much like the new car smell.  Realities start to come in to play with your car like, where is the best place to park so nothing happens while I am away?  And the realization of, now I have to pay for this thing.  How much money do you need to survive?  You need to make sure you have a long term plan in place so that if you can afford to take a hit in the short term, you don’t hurt yourself in the long term.  If you can’t make that amount you need to survive within your proposed plan, don’t take the car off the lot.

How much do you have in savings?

This question ties in nicely to the first.  A good savings account will go a long way in helping bring down the cost of the month-to-month you need.  You certainly don’t want to have to live off of a savings account but if you have to fall back to it make sure you have a sizable chunk set aside for times of need.

How long can you hold out before you need to make a profit?

Most organization will not make money for the first few years of their existence, if at all.  Not everyone will need to start making money right away but you need to know what your long-term plan looks like.  If you can go two years with out making a profit you need to make sure you are meeting short-term goals to insure when year two is up, you are making what you need to thrive.

Does Your Concept Have a Market?

It’s easy to get excited about something you are passionate about but really question if a large enough audience shares that same passion or need.  You might be really into the idea of making cell phone covers but not everyone has forgotten 1998, (bad year for cell phone accessories).  Talk to industry leaders if you have the connections and work on researching demographics in your target market.

Do you have smart people to surround yourself with?

You might be smart, but your not that smart.  You need people to help you see your organization grow.  Not many people are able to create and truly sustain something themselves, in fact, I am quite certain it is not possible.  Make sure you have people who believe in the mission to surround yourself with, and work as hard as you can to determine if they are trustworthy.