06 Aug 2015
How to know when to start your own business?
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From time to time I have been asked to help someone start a new business and each time I have asked them ‘why’?

This question has raised numerous answers; because they feel they are unemployable, they want to help people or they are charitable in their outlook and believe they want to share their ideas.

However each time when drilling down on this question it effectively comes down to the need to make money.

So for all the good intentions and the philanthropic reasons behind it, the fundamental basics is just the want to make money. So, whether that’s making money in order for you to survive (i.e. making a job for yourself), setting up for a business that can eventually be sold/handed onto the children, or it can still makes sufficient money whilst retired, it still all comes back to the nitty gritty of making money.

In order for a business to be successful it needs to cover bills, wages and running costs otherwise, of course, you go out of business. It comes back to the fact that a business has to make money for it to survive. So, putting all the sentimental reasons to one side when wanting to start, just ask yourself this: can this business idea make any money? If it can’t then don’t even start.

The next question is who is the target market for your product or service? If it is a product then who will buy it and if it’s a service then who will want it? Again, this is a fundamental basic because if you set your business up in such a way that you are not reachable by your target market then you will fail.

So back to the questions in hand: can you make money and who is your target?

If you can answer yes to the first question and define the second then congratulations, you have a great business idea! Of course you then have to do things to get the business up and running but no point if you cannot answers those questions in the first instance.

Having decided that your business idea can make money and there is a market that you want to reach then the next thing is setting your goal. Simply put, its time to get your goals sorted. Then ask yourself: “What do you want to achieve?” “Where do you want to be in 10-15 years?” Then and only then can you put in some structure for the business as then it will start becoming achievable.

Starting a business requires making sure you know where you want to take it. What is your end goal? Knowing where the end of your journey is, it allows you to plan on how to get there.

Top Tips

  • Don’t be afraid to ask yourself why do you want to go into business?
  • Be aware of your product/services and the potential for customers or target market.
  • Assess your own goals of where you want the business to take you. Retirement? Holidays? New home?