3 Important Questions to Consider Before Starting a Business for the First Time
By Gordon Joseph
Starting a business or making the transition from a traditional job to the exciting and often unpredictable world of entrepreneurship is a big step and requires a solid foundation of knowledge, determination and the willingness to adapt. Many have considered the year 2020 being the easiest time in history to become a millionaire. This may be true and many have taken the path of entrepreneurship as a their vehicle to success. But before starting a business for the first time, big or small, there are components to consider before putting time or money into a new venture with a blindfold in areas that require 20/20 vision. Lets put it this way, if you build a house a bad foundation, the whole thing could collapse;the same goes with business. Before starting a new business venture for the first time, ask yourself the following 3 questions.
1. Does my Product or Service have market viability?
There have been many who have fostered incredible inventions, ideas, trinkets, recipes, deserts,; thousands if not millions. The only problem is that most of them did not sell whatsoever. Many have put hard work into products or services and spent countless amounts of money only to realize that the public simply did not want to buy their product/service!
Thankfully, we can learn from our mistakes of yesteryear. Technology and the internet has given every one of us access to the largest off paper database of basically everything under the sun. With all this information at our fingertips, it allows us to gather game changing data such as an industry analysis, and product and service analysis. These will determine the viability of your product or service and additionally, sensitive information about your competitors and their online presence. Determining your product or services market viability is your first step to a wise business decision.
2. Do you have what it takes to handle entrepreneurship?
For many of us who are born and raised in the western world, we are introduced to institutionalization at an early age, and more many this continues until retirement. It goes school to college to career to retirement. The most common element among all those institutions is that a majority of the time your schedule, your lunch breaks, your vacation time etc is determined by your company or authority. Lets consider that the function of being self driven is a muscle. For the most part,the education and career experience does not often give us a chance to flex those muscles.
Entrepreneurship is much different and more dynamic than being employed. In fact, there is a general misconception that individuals of higher authority, do less work. On the contrary, entrepreneurship requires more work, the ability to handle more pressure while having to make tough decisions. All of us should be motivated and positive about starting a new business venture, but also prepared; not just physically, but mentally and emotionally. With sales and marketing as an exception, the majority of us are used to being paid for showing up. In the business world people get paid for bringing value to the market place.
Handling rejection, with days or months without gaining traction is something to consider when attacking entrepreneurship on a full time basis. Being able to handle rejection and disappointment without losing stride is one of the key foundations of becoming successful. If that seems impossible, consider applying for a sales position to sharpen your skills of handling rejection. All sales professionals will agree that the emotional output of rejection erodes with time.
3. Do You Have The Resources or Access to Resources?
When it comes to the business world, timing is everything. Arriving at a golden opportunity can mean receiving purchase orders that correlates with the right amount of inventory and manpower. More or less, its being equipped in all areas before rushing into things. It could turn out that you have too many customers and not enough inventory or vice versa.
Money is the foundation of any business function. It's the tool and the prize. Without a proper source of funding, your business may see a grand closing very quickly. Understanding your startup costs and having access to funding to handle the unexpected will save you money and hassle and ultimate disappointment. Funding your business is crucial in being able to keep operations running for your business, while being able to keep up with customer or product/service demands at the same time, without over spending. This also works the opposite way as well. As great as it sounds, it would be counter productive to sell 60 cases of product, when you only have 10 cases in your inventory. Making sure that every decision is calculated based on cash on hand, inventory or manpower on hand will save your business from either being embarrassed from not being able to keep a commitment or having too much product or manpower without the sales to fill orders. Having the proper funding in place for your business and using those funds properly is a large percentage of how to keep a business growing and afloat.
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