The idea of starting a company or business is appealing to many professionals. While they might already be employed, the routine of a 9 to 5 schedule might not be as fulfilling as before.
You might be in a similar situation. You might be searching for signs that indicate your readiness to start your own business. Below is a list of 4 signs to look out for. Hopefully, this will help you initiate a reality check before you start drawing up a business plan.
1. There’s a valid pain point among buyers
It’s not enough to believe in your initial idea. Whether it’s through rigorous market research or chance observation, successful entrepreneurs know what their target market needs.
Such needs leverage both physical and emotional aspects of the customer experience, and they usually go beyond just “liking” a particular product or service. More importantly, these needs are strong enough to compel potential customers to pay for what you’re offering.
If you still lack some critical information, it’s best to do more research. Seek out the advice of subject matter experts in a particular field and the opinion of your potential market.
2.There’s not too much competition
An overly saturated market leaves you in an awkward position to differentiate your idea and solutions from others.
Despite the unique advantages you have over the competition, if the market is just too crowded with closely similar offerings, there’s a high likelihood that you won’t capture enough buyers. As a result, you might have a hard time breaking even or making a profit.
However, if there is a sizable market opportunity to exploit and there are not many solutions addressing a specific need, then it’s a good idea to push forward.
3. You’re in a good financial position
The last thing any entrepreneur wants is to pursue a business idea using every last cent of personal savings.
You’ll know when you’re in a good spot when you’ve saved enough money to sustain both your business venture and your basic needs for about several months to a year. Alternatively, you can have access to reliable debt financing, and you’re reasonably confident that you can make consistent payments.
The ideal financial position will mostly depend on several factors that are primarily exclusive to a particular person. So what might work best for a single and relatively young fellow might not be suitable for someone who is married and has children.
4. You’re prepared to experience a different kind of uncomfortable
While you might be envisioning a work-from-home job once you leave the traditional employment set-up, running a business can still take up a lot of time and attention.
It’s a mistake to think that self-employment will be a walk in the park since you’ll be mostly you’re own boss. Hard work and constant learning will be your daily companions. There’ll be several missteps in the first few years and more so in the early months of the venture.
If you have a family of your own and they take up a significant portion of your time, you have to find a way to keep making progress with your business — meeting with potential investors, making product or service improvements, marketing the company, etc.
After honestly evaluating your skills and capacity, you’re ready to take on these challenges.