Questions You Need To Ask Yourself Before Becoming An Entrepreneur

February 15, 2017 Career Tips Neha Chauhan No comments

There are many people who are unsure whether or not to take that first step.

Certainly, it can be challenging to do a business “on the side” until it’s big enough to sustain itself. But the most effective way to find out if your idea is going to work is to simply go all-in.

Otherwise you’ll never truly know. If you’re ready to make such a huge life change?

Taking the risk and become an entrepreneur is hard, whether it’s because you can’t find a job in this tough economy or you’re simply tired of working for someone else or you want to do that.

It’s normal to be frightened about making a big life change. But if the time is right for you, it can be exhilarating and deeply rewarding–and bring you more meaningful success than you’ve ever experienced before.

Here are some question you need to clear with yourself before becoming an entrepreneur:

Do I have what it takes to be a leader?

Few entrepreneurs can start and run a business on their own. It takes a team of professional-minded individuals with specialized skills to operate a healthy business.

As the owner, it is up to you to select members of your team who you can trust to work to achieve the company’s goals. That is why an entrepreneur must have adaptive interpersonal skills.

Managing employees entails – Giving clear directions, Setting realistic expectations, evaluating employees work, Providing incentives, Encouraging honest and constructive feedback, Mitigating conflicts. This can be a lot to handle when having to manage all other aspects of the business.

Can I break big things down into small pieces?

This relates both to problems and large tasks. Sure, you need to see the ability to see a large thing as simply the sum of its parts is an invaluable skill. Problems will no longer be insurmountable, as you can break them down into manageable parts.

Large tasks will feel more doable and you’ll be less prone to procrastination.

Can I afford to take the risk, financially?

An entrepreneur fresh out of school with few to no financial obligations has less of a financial risk than someone with a family. You need to understand the big financial risk associated with starting a business.

Your idea may flop, you may be unable to pay yourself for a long time and there is always the possibility of losing it all.

If you already have a stack of financial obligations, start your business on the side. That scenario may not be ideal, but it’s still possible to find success this way. If you don’t have those obligations, and you fully believe in your idea, then go all-in.

What if I try and fail?

there is a chance that your business might not succeed. If the day ever comes for your business to accept defeat, it will undoubtedly be a day full of despair and anguish.

It feels almost impossible to pick yourself back up after suffering the loss of a project you poured your heart and soul into.

Before you step into the world of entrepreneurship, make a back-up plan and set aside some funds in case your business venture sours. It will be much easier to recover from the disappointment of a failed business if you have a safety net.

Am I able to reverse my decision?

Any new career move should come with a safety net. One way to create that safety net is to excel at the job you’re leaving behind so that you can always return to it or get a similar one, if your new business fails to take off.

How well do I organize and plan?

A simple way to avoid periods of cash shortages is to go through the process of writing a business plan.

The lack of proper planning can lead to cash shortages during the first few months or even years of operation.

Most new businesses fail within the first few years of operation due to poor planning. Inexperienced business owners often make the mistake of overlooking the importance of forecasting their cash flow.

Creating a business plan is a crucial step in the business development process as it allows entrepreneurs to anticipate potential risks and formulate a contingency plan to avoid them.

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