Have you ever wondered how you can attain financial freedom? I bet you if you ask anyone, more often than not will be told to start a business. Depending on your salary has been proven an impractical means to financial freedom. You must diversify your income streams. There are several different kinds of income streams to explore. This means you must get into business or entrepreneurship. The timing must be right though; certain fundamentals must be in place to start your own business. Here are signs that you are not yet ready to start your own business:
You often hear that you do not need capital to start a business. You hear people saying you only need a good business idea to start a business. That piece of advice is sometimes subjective because most business ideas require capital from the onset. Of course, you can start by bootstrapping but only works for a while. Typically, by running solo, overhead costs will be minimal when starting. As the business begins to scale the need for more capital will become inevitable. This is because you will begin to need human resources and other needs e.g. office space, warehousing, transportation, storage, and the like.
Before you start a business you need to be able to properly plan and forecast. It is understandable that all the money might not be there but can you ensure it will be there when needed? Do you have the working capital to run the business for at least 6 months without capital injections or returns on investment? If you cannot guarantee that and are still cash strapped you are not yet ready. Once a business starts running you cannot afford to all of the sudden runs out of cash. This is one of the reasons most businesses start and fizzle out in no time. Put your finances in order before you start your business.
Hungry For Quick Profits
You do not need anyone to tell you whether you are hungry for profits or not. You know it since when you start a business you have certain expectations. If this hunger defines your expectations in starting a business then you are not ready. Such a mindset will compromise your ability to maintain healthy cash flows in the business. You will prematurely spend what should otherwise be reinvested into the business.
Plus you will be blinded from having the right state of mind in rolling out the business. For instance, you might cut corners, engage in corrupt dealings, or avail of substandard services or products. This is all because you will be seeking to make quick profits. If this defines you, I am sorry, you are not yet ready to start a business. Cash flow problems are the number one cause of business failures; one of their fuels is an insatiable appetite for quick profits.
No Business Plan Or Business Planning
I am always amazed at the many people who start businesses without a business plan. A business plan is not only just needed for seeking funding. Even when you are bootstrapping you must put together a business plan. No matter how straightforward things might seem or how experienced you think you are; plan first! Drafting a business plan will benefit you in countless ways. The components that constitute a business plan speak for themselves. For example, sections like market analysis, competitive analysis, and financial analysis.
By doing your homework and coming up with those sections you are better positioned for success. Many businesses start today and in no time they shut down. They might run out of money or might fail to find a sustainable market. You then wonder how could they not notice or forecast that. Mostly, it is because they never took the time to come up with a business plan. As they say, failing to plan is planning to fail; it is no mere wordplay – it is the truth!
Not Prepared To Put In The Work
Most people have the misconception that starting a business means lesser working hours. If this is the way you think you are sadly mistaken. Let us suppose you are currently at a day job. If you are struggling to put in the work now, trust me, you are not ready for running your own business. As an employee, you largely deal with your job area. That is way easier than running your own business. In running a business you will be many things.
Especially when starting you will be doing product development, administration, marketing, sales, and so on. Most people who run businesses will tell you that you will clock in more hours than your regular day job. Are you prepared to embrace that kind of life? Are you geared to be stretched in all directions as you juggle many roles? If your answer is no then you are not yet ready to start your own business.
You Have A Limited Worldview
Are you informed on the current state of the nation or the world? Do you appreciate the policies and current developments of the nation and the world at large? Do you understand the place and importance of the internet and social media today? Do you grasp how digital the world is becoming and the rising dominance of emerging technologies? I just cited examples of questions that can show you whether or not you have a limited worldview. If you have a limited worldview you are not yet ready to start a business. Likening the world we live in today as a global village is spot on. Many things that happen now have implications for almost everything. You need to be abreast with the dynamics of what happens in the political and business world.
If you are found wanting in these 5 aspects then you are not yet ready to start your own business. You have to be candid with yourself and see where you stand.