This is a great question and the tragedy is that it is usually asked when it is too late, if at all. We know this because roughly 80% of businesses fail in their first 5 years and 80% of those that survive fail within the following 5 years.
Over my years in business, I have seen many businesses start up and fail simply because the people who started them were either unprepared or should never have gone into business for themselves in the first place. Having researched the advice out there, I am shocked at a lot of what I have seen. Much of it is based on the assumption that anyone is suited to starting up a business. Yes, anyone can start up a business but does that mean everyone should?
Below are 7 questions that are worth asking yourself if you are considering starting up your own business, this list is not exhaustive, there are many more that you would be wise to consider so I encourage additional research.
Do you realise that your primary role in your business will be as marketeer? (Think “the plumber is actually a marketeer who happens to market plumbing.” “The App developer is actually a marketeer who happens to market Apps” etc.) If you don’t yet have the right marketing skills, when and how will you acquire them? Or, who will do your marketing for you? If someone else does your marketing for you, you will still be responsible for the results because it is your business so how will you hold them accountable?
How well do you handle working alone? If you need people around you constantly then think about this very carefully. Starting up a business can be a very lonely experience.
Why are you doing this? Be very clear on your reasons for why you want to start up a business and write them down.
Do you have the right help and support network in place? Are your family and friends on board? Starting up can impact them too so open and honest discussions may well be appropriate.
If you are starting up with other people, in a partnership with family or friends for example, do they share your values around money, commitment and ownership? Do you understand that your relationships will change once you go into business with them? What written and signed agreements should be in place before you start up?
Can you afford to start up a business? Your business may well be unprofitable for the first year or two, possibly longer. How will you fund your living expenses in the meantime?
How will you fund the new business? Who will help you create a cashflow forecast to make sure you can meet all the costs before the money comes in?
If you still think that starting your own business is for you then the next thing to do is do what most business owners fail to do and that is: learn how to run a business before you start. You see, most business owners either think they know it all already or conveniently decide that they will “pick it up as they go along.” This is because somebody once told them that “experience is the best teacher”. Well, this may be true only if you are willing to learn from the experience of others. If you want to learn by your own experience however, expect a rough ride that may well lead to bankruptcy because experience is at best a cruel and expensive teacher.
The reality is that you have to “learn before you can earn”. By this, I don’t mean a degree in business studies. I mean learning from people who have actually done this stuff before, written down all their mistakes so that you don’t have to repeat them, put it all into a book that you can buy for £10 and read. Does that sound like good value for money? It is if you have the humility to buy the book and read it (usually also available on Amazon Audible if you don’t like reading) A great place to start is “The E-Myth Revisited” by Michael E Gerber. Read it to learn where your business is heading. Read it and apply it if you are truly committed to a successful and happy outcome for your business. Another classic is “Start with Why?” by Simon Sinek. Again, these books are best read before you start up, if you have already started then still read them anyway.
Finally, do what only the smart business owners do: invest in a coach. The right coach can help you cover your blind spots, keep you focused on the important stuff instead of the distractions and be there for you during the bumps downward. There are plenty of Action Coaches with brilliant Solopreneur programs that are designed to be affordable for the Start Up. Get on one of these so that your success is planned rather than left to hope and chance.
As you can see, there is plenty to consider and counting the cost financially, physically, mentally and emotionally are really important. Above all, talk to the right people. Message me if you have any questions.
