Have You Got What It Takes To Start A Business?
Having a great business idea is only the first step. Turning that idea into a nuts-and-bolts business takes grit, determination, and most importantly, an understanding of what’s really involved to make it successful. So how do you know if you’re really ready to start a business? Here are five signs.
1. You’ve discovered your passion
You might not have worked out all the details yet, but if you have an idea that you’re truly passionate about, it will spur you on to remove the obstacles in your way. Starting a new business is hard: that fire in your heart will give you the fuel to carry on.
2. You’ve ensured your idea is financially viable
Passion alone won’t carry you through. Before you put up your house as collateral against the business loan, sit down and create a proper business plan to see if your idea is financially viable. At this stage, you’re not looking for funding, so this is an internal business plan. Include a summary of what your proposed business will be, the target market, strategies for reaching your market, future goals and detailed financials. The latter section encompasses how you’ll fund the venture in the first place, what you anticipate the overheads to be and what the financial projections are going into the future.
3. You’re self-disciplined
You’ll need to make sacrifices to get a new business off the ground, but simply putting in the hours without the right focus will lead to burnout rather than success. Self-discipline is the crucial element that will keep you in control of your input and operating with a clear focus. At crunch times, it’s essential that you keep a level head and are driven to meet your goal. As healthy people are more likely to be self-disciplined, ensure you’re eating well, getting enough sleep and finding time for some exercise too.
4. You’re not afraid of risk
60% of small businesses in Australia close their doors within the first three years. We hope you won’t be one of them, but even the businesses which do succeed have undoubtedly taken some calculated risks along the way. You should be taking steps to mitigate those risks, rather than gambling everything on one roll of the dice. But if unknowns are terrifying to you, you might not be cut out for entrepreneurship.
5. You can handle and learn from failure
Everyone makes mistakes. It’s how you learn from them that will determine your success. Put your ego to one side and accept that you’ll be confronting a steep learning curve in the early years of your business. A business mentor can be useful to talk through problems and ask advice. When mistakes happen, don’t throw in the towel; sit down and work out what happened and how you can avoid the same thing again. As time goes on, this will help you anticipate future road bumps and make you a better business leader.
This article was written by Tanya Ashworth-Keppel on behalf of the Australian Institute of Business. All opinions are that of the writer and do not necessarily reflect the opinion of AIB. The following sources were used to compile this article: business.gov.au, Entrepreneur, Huffington Post and Forbes.