Business Bad Habits

6 Reality Checks Before Starting Your Own Business

Starting your own business is an exciting thing especially if you have a real zest for what you wish to pursue. It all begins with dreams, ideas, lot of time, money, commitment, worries and, not to forget, fear. Most of us have, one time or the other, dreamt of owning a business however, surely we all realize that there could be quite a distance between dreaming about an idea and executing it and the length of it could be scary.

But it doesn’t have to be like that at all. Prepare beforehand as much as you can and you will have most of the things sorted out or you will sort out along the way. For those of you fighting with the fear of taking the step, it is better you go through some reality checks before starting out.

  1. Are You Really Ready?

Are you really the business managing type? Are you more comfortable with an 8-hours-a-day job? If you are currently employed by some other company then quitting that and starting your own business is actually a lifestyle change. It’s not just an easier way of making more money. Sure a business pays off but only in the long run if and only you had given it the time, money and sweat it required. Ask yourself this question and be honest with yourself.

  1. Is Your Idea Practical?

Yes it’s necessary that before you start marketing the product/service you have absolute belief in it. However, your conviction that the product will be a hit is not enough for it to be a success. People may like your idea; they might even love it but is it practical for them to actually pay for it? Do they really need it? Will it transform their lives in a positive way? Talk to the successful people in the industry and you will get a lot of tips.

  1. Is There An Opportunity In The Market?

Again, your passion for the idea is appreciated but is there really a market for such a product/service? Before you put your judgment on top of everyone else’s opinion it is suggested that you survey the market. There are a number of market research firms who carry out specific researches as asked by their clients. Run a survey and you will have an idea if your idea even has a potential market or not.

  1. Is The Market Already Crowded With It?

Are you going to reinvent the wheel? Again, do a survey. Look into the market and see if your product is already available. The easiest place to start looking? Google. Type in the keywords and you will know how many similar products are already in the market. If it’s a crowded market your competitors will give you a lot tougher time to succeed unless your idea is better than theirs.

  1. Can You Build A Team?

Your business idea sounds amazing in your head but its execution can’t be done alone and isn’t as easy as you might have thought. You need to bring together a team, motivate and manage them, work with them at every stage equally as an employee. Running a business is difficult even for the most dedicated founders when the team they put together isn’t even slightly excited about the product.

  1. Do You Have The Finances?

Here is where your dream might get shattered. Passionate entrepreneurs tend to over-estimating early sales and underestimating costs and later get into trouble for not evaluating the business’ finances properly. To convert your dream into a profitable, tangible business you need to write a sensible business plan and have it checked by a finance expert. Heed their advice for any loopholes in the plan.

If you make it through all of these reality checks, which we really hope you do, you are definitely ready to be an entrepreneur.

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