T[/drocpap]he prospect of starting a new business is exhilarating. Too often, however, people tend to underestimate the workload that goes into operating a small business and make the decision for the wrong reasons.
Understanding why you want to start a small business is necessary to know if you’re ready. Is it purely because you hate your current job? Or are you truly passionate about the business idea you have? If any of the factors listed below sound like your reasoning for starting a business, it might be best to reconsider. Here are five red flags that indicate you should not start your own business:
You Aren’t Passionate About the Idea
Do you stay up late at night thinking about your product or service? Are you fueled by the idea of exceeding customer expectations and seeing your idea bloom? Or, is it just another idea that comes and goes without much thought?
If you chose the latter, starting a small business may not be the right route. In order for your small business to succeed, it is vital you are entirely engrossed in it. The idea of working long hours shouldn’t scare you, nor should the potential of failing. According to Dashburst, 95 percent of small businesses fail within their first five years. If you’re going to succeed, you have to be 100 percent passionate about your endeavor.
You Don’t Have Funding, or Know Where to Get It
Starting a small business often requires a great deal of funding. If you don’t have money saved up to finance your idea or support yourself in the pre-profit phase, starting a small business can be a risky endeavor.
Having money saved before launching a startup is the only way to minimize risk. How else can you pay for inventory, an office space, small business insurance and other unavoidable costs? Before starting a small business, make sure you have the funding needed for initial costs and potential complications that may arise.
You’re Just Sick of Your Current Job
All too often we become fed up with our daily routine, and the idea of working on our own terms becomes more and more attractive. If the idea of owning a business sparked out of frustration at your current place of employment, then the start-up life may not be for you.
Starting a business out of hatred for your job can make you underestimate the workload of a new company, and will put you in the wrong mindset. Before making the decision to start a business, make sure that it’s not driven solely by the desire to leave your current job.
You’re Not Prepared to Sacrifice
Small businesses take a great deal of sacrifice. This can come in the form of personal relationships, social life, hours of sleep you get and financials. If you aren’t prepared to sacrifice time spent relaxing, being with family and friends or any other luxury you may have now, then starting a business may not be the best idea.
Ask any successful startup owner about their lifestyle prior to their business taking off. If their explanation worries you, you may want to hold off on starting a business of your own.
You Want to Be the Boss
Owning a business obviously translates to being the boss, right? Not completely. If being the boss is one of your main motivations in starting a business, you should strongly reconsider. Sure, you get the flexibility to choose your own hours, and are essentially in charge of your own destiny. The reality, however, is that you are not your own boss; your customers are. Small businesses must cater to their customers and ensure their utmost satisfaction if they want to be successful. So if you’re starting a business because you get to be the boss, understand that you will still have to answer to others.
If you’ve been thinking of launching your own business, the excitement and ideas are likely running through your head at 100 miles per hour. Before delving into the start-up life, take a second to step back and ask yourself some crucial questions. If you aren’t starting the business for the right reasons, you’ll find out sooner rather than later that the grandiose vision you had of owning a business may not be reality.