How To Know If You Are Ready To Start A Business

You want to start a business, but you are not sure if you are ready? Starting a business is not always glamorous, it is a journey with dark and good days. Everyone is ready for the good days but are you ready to weather the storm on rainy days?

Here are 3 signs you are ready to start a business.

1. You Have A Great, Evaluated, And Tested Business Idea

It seems very obvious that you must have a solid business idea before you can start your company and most people do. But, one of the main reasons startups fail is because the entrepreneur failed to evaluate and test their own business idea.

The process is very similar to shopping for insurance. When looking for car insurance, you will not just take the first insurance offer you receive. You will (i) ask critical questions, (ii) look at the quotes from various insurance competitors, (iii) look at your financial situation, specifically your budget for the premiums and you will (iv) assess the market – what the trends in car insurance at the moment are.  

Similarly, before you start your business, you will interrogate your business idea and test it with these four critical points:

1. Ask critical questions and know your 4Ws and 1H

Why do I think this idea will work or why do I want to start this business?

What problem will be solved with this business idea?

Whom am I targeting? / Who will benefit from this idea? / Whose problem will I solve? / Who is my customer?

When will I start? / When will I raise funding? / When will I test my market?

How will I start? / How will I raise funds? / How will I sell the product or service?

2. Identify your competitors.
3. Assess your financial situation.
4. Evaluate the market for your business idea.

2. You Have A Plan

One of the common mistakes that new entrepreneurs make is that they do not have a proper plan. There are some businesses that do not require a detailed business plan but if you want to be ready for certain eventualities and be organised, you will have a strategy, a roadmap. Documenting this strategy is what we will call your game plan.

Your game plan will answer or at the very least address some of your fears holding you back from starting your business. Your game plan will detail your sales strategy, marketing plan, market analysis (investors want to see if you will make money), your funding requirements and financial projections. Yes, you have figured it out – your game plan is indeed your business plan (or the start of one).

These are only a few of the important components of a good business plan and not only will it provide your business with direction, but it will also show funders that you have taken the time to organise and structure your plan. Most importantly, it will help you address many of the fears and doubts that you might have.

3. You Are Really, Really Passionate About Being An Entrepreneur

There will definitely be ups and downs in the business journey. Being motivated and passionate about your idea will help you get up and go on the days when you question yourself, your idea, and the entire business.

There will be days when your funding requests are declined, and your sales are just not picking up. An entrepreneur must be ready to weather the storm and be in it for the good and rainy days. Being an entrepreneur is hard work and, in the beginning, you might have to work even more hours than you did for your normal 9 to 5 job.

You might face more rejection letters than you ever did in your entire career life and work harder than you have ever had to work in your life. The only thing that will keep you going, is that fact that you are so passionate, that you are willing to go above and beyond for your business.

There are many more things to consider before you start a business. But follow these three points above and you will have a great sense of whether you are ready to be an entrepreneur! You will at the very least know, what to work on before you fly solo.