How to know when you are ready to start a business? Well, the truth is, you’re never ready. So in fact, the worst time to start a business is when you are desperate, the worst time to start a business is when you need money. You shouldn’t start a business when you need money desperately, if anything, just start with a high income skill first, before you start business,
But let’s say that you are ready mentally, emotionally, and as well financially. Now, you’re ready to take a leap of faith? How do you know that you’re actually ready? Below are some of the signs that you should pay attention to so that you’ll know if you meet some of these criteria. Then maybe you know if you are ready to go out there and start your business or build your empire
Sign number one, you should have a clear profit path,
meaning that you have a very clear idea of how you’re going to make that first sale. How do you make that first profitable sale?
Not just Hey, I’ve got a good product. This is my service. Let’s go out there. And hopefully someone would like it.
No, I mean, in your mind, you’re very, very clear about how to get this product out there in the marketplace, where those customers are, where are they hanging out and how you’re going to convert those leads into customers, you have a very clear idea how you’re going to make that first sale, not just the first sale. But how you can make this sale profitable.
Let’s say you’re selling a $1,000 thing, right? Which is your product, and then your cost is $100, right? And then you’re going to spend 100, 200 or $300, to acquire that customer profitably versus the product is $1000, it costs you $100, but it actually cost you $1,000 to acquire each customer. That’s not a profitable customer. Right?
So you’re not even breaking even unless you can answer the question, How can I make that first profit in sale? That’s your profit path.
You can also Read https://jviks.com/dont-start-a-business-yet/
Sign number two, you have a very clear business model. What is a business model?
Meaning how I’m i going to monetize this? How we’re going to make money. So now you know how to make that first profitable sale? You have a clear profit path.
But then what is the overall business model? what is going to make you different from everybody else in the marketplace, maybe after your first initial product, you’re already thinking, Well, I’m going to build a customer base, then I’m going to offer them something else after the first product. And something else after the second product.
That’s a business model, right? There’s a big difference between selling something, a moneymaker, versus building a business.
Most people they have a moneymaker. They don’t have a business, they have a product, that’s all they have, just a product,
A business has a business model. So until you’re very clear of your business model, then you’re not ready to start a business.
Sign number three, you should have an edge, what is an edge?, an unfair advantage that you will bring to the table
It’s something that allows you to differentiate yourself in the marketplace to penetrate all the noise that’s out there, Like what makes you different?
Why should people buy from you and not everybody else? If they buy from somebody else? Why should they switch?
You cannot just say all because I’m better now, what is the edge that you’re bringing to the table,
Maybe you have a technology, or a certain relationship, OR you are a superior marketer,
Maybe you have a superior process that you have spent years discovering,
Whatever that might be let it be something that it’s very difficult for other people to compete with, whatever it is, we need to have an edge if you want to win, you cannot just start a business without an edge because it is going to cost you a lot of time and a lot of money.
And the fourth sign that you are ready to start your own business is you should have some capital,
you need some money to get started, you’ve to be able to survive and sustain for a period of time.
So when you have no money to start a business, well then you’re making decisions based on scarcity. based on desperation.
It’s very difficult to make strategic decisions when you don’t have any cash coming in.
So only start a business when you know you have Put aside a certain amount of money, then you can just start knowing that it’s going to take some time for this thing to ramp up. And that is if you are good, most of the time, most people don’t make it,
No one starts a business thinking that they’re going to fail.
They’re overly optimistic. Sometimes that’s the problem with entrepreneurs. They haven’t failed enough.
So they are very naive. They are overly confident versus thinking more like an investor. Hey, what is the downside? What could I lose? Can I live with a downside? That’s being smart.
So you need some capital, how much capital? is up to you depending on the business, at least you have some capital as well as you have access to capital, meaning you can borrow money from banks and financial institutions, from private investors to fund your venture.
Sign number five, you are ready to start a business when you are okay not making money for a long period of time.
Yes you are ready to start a business when You know, you are okay, not making money for a long period of time. If you are starting a business where the pure motivation intention is just to make a quick money, you’re not going to be successful.
You can also Read https://jviks.com/are-you-still-chasing-money/
Now it doesn’t mean you don’t want to be profitable, It doesn’t mean profit doesn’t come into the play. It absolutely does. But if your focus is just to make money, you’re not going to be successful. Why?
Because if you focus on chasing the money, chances are you’re not solving problems.
You should be in business because you want to solve problems in some way, shape or form. You’re fulfilling a need in the marketplace, you’ll bring your entrepreneurial skill to the marketplace.
. As an entrepreneur, we eat last, This is why its called profit, you don’t get a paycheck, you get to
pay your vendor, your lease, your team,
And get paid last,
You wait the longest, because the first few years, not a few months, first few years, sometimes the first 10 years, you’re just working and working and putting your time into the business.
And hopefully it will grow and you will thrive. And you will have a big payday. But in the beginning you’re just putting in your sweat equity this is Why Most people don’t understand
They think they are going to start a business in six months in a year and boom they’re already in the promise land? …………….No, no, even the ones who are successful, chances are in some cases, it took them decades to get to a certain stage in terms of business building to a significant business, some cases 15-20 years.
So are you willing to delay the gratification? Are you willing to wait?
If you’re not willing to wait? Then forget about it, you’re not ready. And actually you shouldn’t start a business. Because that’s the reality.
So those are some of the signs and signals that tells you and tells me that you know you are ready to start a business. So comment below. No bullshit. No overly optimistic. Are you ready to start your own business? Comment below.