Whatever generation you belong to, the allure of entrepreneurship can grip you if you have a clear picture of what it really takes to set up a new business. Here are some things to check before starting a new business.
The number of times I recently read about the death of 9-5 jobs, the rise of entrepreneurship and so many such articles were indicating that the millennial generation is even more into entrepreneurship than any of the previous generations, which to many of us can sometimes sound alarming, because we believed you can only become an entrepreneur once you’ve acquired the right expertise from working in the corporate world. But, is this still the case?
Whatever generation you belong to, the allure of entrepreneurship exists amongst us. But the picture needs to be clear on what it really takes to be an entrepreneur, the dandy picture of having your own time instead of the 9-5 with no one to boss you around needs to be eradicated cause it’s much more than just that. So what are some of the things you need to think of when considering taking the dive into entrepreneurship?
What is your passion? What is your calling?
Along the years of my business, many asked me why I chose this business in particular, which is digital publishing of magazines (and later books as well). At first that question used to catch me by surprise, cause I didn’t understand where was the mystery in the question! This is what I loved so of course this is what my business will be about. The more I read into entrepreneurship I realized that the reason I went into this kind of business is cause “I followed my calling.”
But then, many more asked me how can we find our calling? And the truth is, there are no simple steps or guidelines for this. You need to dig deep and find what is it that you are truly passionate about, what is it that no matter how tired you were, the moment you see it or work on it you feel reignited and energetic again? It could be a field of interest to start a business in, and it could be a talent to offer as consultancy. If you want to survive in your entrepreneurship dive through its thick and thin, you need to make sure you pick something you’re really passionate about so you can endure it, and make a successful business out of it.
Do you need to quit your job or can you balance them both?
If you already have a job and you came up with your new business concept, do you quit right away? Most of the times, you shouldn’t, but not always. In my experience, I actually stayed in my job for few more years until I stabilized the business concept, ensured it was profitable and sustainable, and then I quit my job, and once I did, with the whole lot more time that I had, I was able to focus further and accelerate its growth way more than I could have while still in the job. Why would you need to stay in the job sometimes?
It could be cause you need further financial liquidity before depending on your new business’s profits completely, it could be cause you’re gaining valuable experience that would help you in the business, and it could simply be because you want to ensure this new business concept will succeed in the market before you cut all your other financial incomes.
How much capital do you really need?
Business concepts differ in how much money do they need for startup. Service oriented companies require the least, while manufacturing and products oriented companies require way more. Even if you owned a fortune, don’t go ahead and pour in money without measuring how much does it really take for each item in the business, from setup, running costs, production costs, marketing costs, labor cost, and so much more!
Many businesses fail when they spend without measuring, because what they don’t anticipate is that there will still be way more that requires investment in the way ahead. A good tactic would be to ask around and research online for what are the unforeseen expenditures in the business industry you’re entering, so you can plan ahead where the money should go and how much.