Can you now say YES to these 5 key questions?
- Do I really enjoy being in business?
- Can I attract the customer or client who will appreciate my business and will pay for it?
- Am I good with customers and can I provide excellent service?
- Does my business model make money or will it at least break even “soon”?
- Can I envision myself persevering for the next 18 to 24 months to really establish my business?
Time for planning
Some degree of prior business planning is essential. To help guide you, you can take a class, read a book, or ask an experienced business owner for support. However you do it, the purpose of a plan is to define your business offerings, specify your market, outline essential management skills needed, and create realistic financial projections with a well-timed series of action steps.
Your final plan will be a useful document for potential investors, funders, or business partners. But the
primary purpose for writing a plan is for the process itself. It forces you to be objective and critical, identifying weaknesses, challenges and opportunities and setting benchmarks to track progress. Ultimately, it will give you confidence to get into and continue with the business.
Take the plunge – jump in
So, you have perhaps made some initial sales for friends and family? You have carved out time on weekends to work on the business. You are still excited about doing it. Actually, it is all you can think about. How do you take the plunge from part-time to all-in?
These are many different ways do it – either as stated or combined:
- Wait until you have raised all the start -up money – through savings, bank loans, or crowd fundraising.
- Convince your family to lend you money (with no interest) and agree to pay back within three years.
- Approach your employer and negotiate to work part-time and use that extra day to work on your business.
- Move from employee to a contractual arrangement - set your own hours and make time for the business
- Find an active or silent partner to invest in the new business and cover expenses for the first year.
- Marry well and/or use your future inheritance to support your entrepreneurship habit!
- Quit your job, go all in, and use credit cards to get you through the cash flow negative start-up period.
The path to small business ownership is unique
It depends on your tolerance for risk, your access to capital and cash flow, your skills and experience running or managing a similar enterprise, and your support systems. Time, money, and the prospect of failure are common hurdles for almost every small business owner starting out:
- How do I find enough time to devote to my business?
- Do I have enough funds to support myself while the business develops over the first 12-24 months?
- Can I respond well to short-term failures as I navigate my way to long-term success?
You may struggle to find the right strategy to launch your business but if you have the passion, some success from testing, solid financial projections, and a strong support network… YOU CAN DO THIS!
Are entrepreneurs crazy?
Sometimes yes.
But that’s just what may be needed - to jump in and swim! Some start in the shallow end of the pool and tip-toe down the stairs. Others lower themselves down the ladder until they are fully immersed but continue to hold onto the edge. And then there are the ones who leap off the diving board straight into the deep end.
No matter what your approach, just make sure you can see the edge so you can make your way back to solid ground as needed. But if you really want to swim in the world of small business ownership, you first just have to get into the water, get wet and learn to swim well.
