How to Decide Whether Entrepreneurship is Right for You
You’ve been dreaming about leaving your day job for some time. It seems so exciting: being your own boss, choosing how and where to spend your time, as well as raking in all the profits of your labors. However, owning your own business is not always glamorous. Here are some questions to ask yourself to gain clarity if the entrepreneurial life is a right fit for you.
1. Do I have enough capital?
As the old saying goes, it takes money to make money. There are many costs associated with starting your own business such as supplies, marketing tools, licenses, and subscription fees, just to name a few. While loans, grants, dipping into savings, or borrowing from family might be options to increase your cash flow, if you are currently struggling with bills or have quite a bit of debt, you may want to wait until your financial health improves before striking out into business for yourself.
2. Am I prepared to become “legal”?
While many people hold the image of the exuberant, smiling entrepreneur toiling away in her home office, even if 100% of your business is online, there are still specific steps you must take to starting a legal business. Registering your business, as well ensuring that you have the correct banking and tax information are important steps to guarantee that your business is functioning within the parameters of the law.
3. Am I comfortable with being uncomfortable?
The number one reason most employees don’t leave their jobs is because they value security. When you become an entrepreneur, you step out of the realm of a steady paycheck, paid vacation, and great benefits. When you run your own business, all the responsibility of the success of your company rests upon your shoulders. If you find yourself feeling terrified of the thought of not having consistent pay or benefits, you may want to reconsider the riskiness of entrepreneurship.
4. Do I know how to delegate?
While doing things all on your own may cut down costs, it likely will increase stress and overwhelm, leading to burnout before your business is even off the ground. Delegation to virtual assistants, interns, or specialists will be a necessity to not only ensures your success, but to maintain your sanity! If budget or personal preference makes it difficult to delegate work to others, you may want to re-think your business structure.
5. Am I covered?
Perhaps one of the areas that many business owners often forget is making sure they have the right insurance to protect themselves and their company. Depending on your business, there are several types of insurance that you may need. The best bet is to use a site such as Biz Insure to help you see what types of insurance match the specific needs of your company.
Starting your own business can be one of the most rewarding things you will ever do in your professional life. Likewise, it can also be one of the most difficult. Take some time to reflect on the reasons for starting your business, as well as all of the practical things you will have to do once you take the leap. Then, ask yourself: Am I truly ready? The answer might surprise you.