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Questions to ask yourself before starting your own business

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Tuesday, 24 February 2015 - Last Updated on May 11, 2015
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By the SERDEF Media Bureau

entrep3More and more people are slowly drawn into the world of entrepreneurship. With the likes of
Henry Sy, Lucio Tan and every other billionaire in the country, more and more people realize that the path to financial security is shorter if one puts up his own business.

What others fail to realize is that, although you can get rich quicker by starting your own business, the risk that you take when you embark on this road is exponentially more than going the traditional route. Short roads do not necessarily guarantee a smooth ride.

But for some, the idea of being your own boss and being the one who decides is worth all the risk. Though there are those who succeed in this endeavor, not everyone who has embarked in this journey became successful. So before even jumping the gun, here are some questions to ask yourself before deciding to give entrepreneurship a try.

  1. Are you ready to turn your back on a steady paycheck?

Although this is not usually the case and a recent study showed that those who start their business before quitting their job are usually more successful than most who take the plunge without any safety net, most of those who decide to give business a try have to quit their job before pursuing this dream.

Quitting your job to start your own business is risky and there is no guarantee that your business, especially in the first few months or years, would earn enough to support you and those who depend on you.

If possible, try to stay at your job when you start your business and just go full time when you are sure that your business is earning enough to support you to avoid any financial complications in the future.

  1. Have you saved up enough capital or do you have access to capital to start you own business?

Although these two points could be tackled separately, the most important part of starting a business is having capital. Ideas can only become concrete if we have the capital to finance whatever dream we have.

Ideally, it is much better to start a business with money that you have saved rather than money that you borrowed since, loans would have interest and interests increase your expenses. This is why entrepreneurs who started their business using their own money are far more likely to succeed or are far more likely to survive the first few lean months than those who start their business using loans.  Not worrying about paying up those that you owe would give you more time to think of ways to improve on your business.

  1. Are you willing to give up much, if not most of your time, lose sleep and live a stressful life all for the success of your business?

Being an entrepreneur would mean losing much sleep, spending countless hours working for your business and worrying about its fate. If you are actually willing to invest more than half of your day for a salary that is less than half of what you would be earning if you were employed, then you are on the right track. During your company’s infancy, you will be doing most of the work and you would be the last person to be paid.

 

  1. Are you willing to bet your future and your family’s future on your company?

For your company to be successful you would have to convince your customers to sample and patronize your product, convince investors that investing in your company is worthwhile and make your employees believe in your company. The only way you can accomplish all of these is if you, yourself, believe in your company.  You can only convince others to bet their future on your venture if they see that you are betting yours as well. You will never be able to instill belief in your product or company if you have any doubt about it. Once you have started it, you have to believe in it with all you heart. If not, you might as well not start it at all.

If you answered all of these questions in the affirmative then you are ready. Entrepreneurship is almost synonymous to risk-taking and although the reward is great, there will be times when you will be pushed to the wall and during these instances; your resolve will be tested. Only when you fully believe in yourself can you weather the initial storm.

Entrepreneurship is not for everyone, but for those who have the heart for it, it promises a future brighter than you have ever imagined. You may have to work for it more than most but in the end, it will be all worth it.

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Photo c/o Pixabay. Public domain.
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