The day comes when you have had enough working for the man and you now feel it is time to take control of your destiny. Time for a change – starting a business – this is both exciting but also full of confusion.
Should you start your own business, buy an established business or get into a franchise? What sort of business would be the best fit for you? How do you know if the business you are looking at is going to deliver your expectations and give you the lifestyle you want?
To help you decide on which direction you should start here are the 5 key questions you should ask yourself in order to point you in the right direction when starting a business.
What is the key outcome you want from getting into your own business?
This is all about starting a business with the end in mind. What I would suggest here is that you map out exactly what your ideal scene would look like after you have launched your new business. I’m not talking specifics of the business but how your days would unfold. Examples are engagement with family and friends, demand on your time, type of activity you may be doing.
You can see where this is heading.
I always find a great way to do this is to start with your current scene, look at what’s great. Keep that and make it part of your ideal future scene. What not ideal – how would it need to change to be ideal.
It is impossible to decide on the best business and how to kick off a business without having taken the time to get clarity on this.
Are you a “need to know” type of person?
We are all wired differently and have different ways of handling situations.
This is an important question to consider. This will provide some guidance on the best path for you when starting a business. If you are the sort of person who “needs to know” about the how, details and processes before you can get things moving and be confident about what you are doing – you are more likely to be suited to a business which has more structure and is in existence.
This would be pointing to an existing business or a franchise business.
If you love the unknown – do not get too stressed in this space and like the excitement of not knowing all the bits up front then kicking off your own business god be the right fit.
Ask people who know you well what do they think?
Current Financial Situation
This may sound obvious but you would be surprised how often this question is not carefully considered.
You current financial scene will have a significant impact on you during the launch and growth phase of your business. Some of the questions to consider are:
- How much money are you able to invest in a business?
- How much income do you need as a minimum during the first 3 months? For the first 12 months to cover living costs?
- Do you have access to reserve , savings or a line of credit just in case it is required?
- What can you afford to lose in the event it does not work as you had expected?
- From a future point of view what is the ideal income you would like to be earning?
Are you going alone or with others?
This is something to consider as there are pros and cons with going solo vs kicking it off with others. I have had many businesses over the years in both of these categories – so I know too well the benefits and challenges of both.
In essence the more people involved the more complexity there is. Different opinions, ideas, how to get things done – requires more discussion. The flip side is you have a few more inputs into these. If you are going to get others involved, it is essential that each person brings something to the table that others do not have. This is critical – too much overlap is generally a recipe for disaster.
Being the captain of your own ship has a lot of appeal no doubt. You can make decisions quickly , no meetings or discussions – able to move faster and adapt if need be. This will very much depend on you sit with the other questions you have considered.
Do you understand the difference between the 3 key options?
As mentioned above there are only really 3 standard options when starting a business. Start your own, buy an existing or get into a franchise. Have you ever considered the pros and cons of these approaches?
By far the one which has the highest risk – but the highest potential return is to start your own. If you have ever talked to business owners who have done this, you may have a better idea of what is involved here; what their journey has been like.
Failure rates of new business is higher and this will vary depending on the type of business and which sector it is in.
Other options tend to have a lower failure risk. With good Franchises having the lowest failure rate – due to have a high level of replication and systemisation.
Enjoy the entrepreneurial journey!
