The time has come. You think you’re finally ready to say sayonara to your 9-to-5 job and start your own business, just like you have always wanted. You’ve been thinking about being an entrepreneur for years and you’ve come to the decision that now is the time. However, before you take that leap, here are 5 important questions you should ask yourself:
1) What is your product?
This may seem like an obvious question but surprisingly, one that many entrepreneurs forget to ask before they make that leap. Ask yourself —what exactly is it that you’re selling? Is there a market for it? Your product or service is the core of your business and if it’s not a solid concept, the chances of success are slim. It doesn’t need to be perfect but it needs to be able to fulfill a purpose.
2) What is the competitive landscape like?
You may have an awesome idea but no matter how amazing your product is, it won’t be able to compete in a market that has 50 other products just like it. Before you start your business, know your competitive landscape. What advantage does your product offer that others don’t? If you can’t answer that question, you might have a problem. Know your competitors. Understand their marketing strategies. Differentiate your product.
3) How much will it cost you?
The one thing that hold most people back from becoming an entrepreneur is the cost. Starting your own business is a huge investment and unforeseen costs can pop up. Understand exactly how much it will cost you to start your business and add a buffer. You want to be realistic about initial opening costs so that you can plan ahead for any financial circumstance.
4) How much can you expect to earn?
You might be fulfilling a lifelong dream but at the end of the day, the only thing that matters is the profitability of your business. Otherwise, you won’t be able to keep it open. After understanding how much your initial costs are, you need to forecast your sales. There are a lot of factors to consider but the more accurate your forecast is, the better your outlook is.
5) How will it affect your personal life?
Many entrepreneurs don’t think about this but taking the leap into entrepreneurship doesn’t only affect themselves but the people around them. How will your new career affect your personal life? Will you have to give up time with family and friends? Making the decision to become an entrepreneur is a very personal one but at the same time, involves your loved ones as well.