Running your own business can be great – you have complete control, you get to work with the people you want to work with, it’s exciting watching it grow and you get to reap the benefits of the profits. There is a lot of hard work involved with setting up your own company however and it won’t always be smooth sailing. Before you decide to take them leap here are some important factors to consider.
It will be a complete lifestyle change
If you currently work as an employee of another company, it’s vital to understand that running your own business is a complete lifestyle change. Don’t assume that it’s a quick way of getting rich or escaping from your problems. Starting a business is hard work, it requires a lot of determination and it may take a long time for this all to start paying off.
If you’re happy to put in the long hours and make lifestyle sacrifices in the hope that it will pay off then great. If you’re looking for an easy life however then this may not be the right move for you.
Is there a need or demand for your product or service?
Just because you love an idea it doesn’t mean that everyone else will. Is there a strong need or demand for the product or service you want to offer? It’s also important to consider that even if potential customers like a product, the majority will only pay for things they need physically or emotionally.
It’s highly recommended that you talk to experts in the industry you want to break into before you invest your hard-earned cash. Also look for market analysis data from a credible, unbiased third party to ensure that the market you want to break into is large and growing.
Is the market already crowded?
If you have come up with a fantastic idea that you’re certain people will love, there’s every possibility that someone else has already done it. It’s worth doing some thorough research because if you find 10 competitors who already have this offering, it may not be worth going any further.
Are there any hidden dependencies or costs?
Many products fail because of dependencies and hidden costs they didn’t take into consideration. Cars that burn hydrogen for example are great for the environment and people may love the idea of them but getting service stations around the world to cater for this can take decades. Make sure you understand all the costs, sales channels, marketing requirements and cultural issues before fully committing to anything.
Are you capable of building and leading a team?
You may start out as a one-man-band but if you want to grow the business then you will need to get extra hands on board at some point. It’s important that you have the skills to assemble, motivate and manage a team that can help you to grow your company.
If you would like further information about starting or growing a business, please feel free to contact Windsor Accountancy and we will be more than happy to help.