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Thinking about starting your own business? Whether it’s a consulting business or a franchise, being an entrepreneur is exciting but may come with its own set of risks. If you have been thinking about starting a business, here are a few things to consider before making that leap:
1. Am I passionate about my product or service? Let’s face it: the start-up phase is stressful. You may find yourself questioning
whether you’ve made the right decision, especially when the hours are long and the initial profits (if any) are lean. As the business
owner, you’re also chief salesperson for your company. Your enthusiasm for your product or service is often the difference that hooks
customers, lands deals and attracts investors. For inspiration, research and read the stories of successful entrepreneurs to hear about
their humble beginnings (Ben Cohen & Jerry Greenfield of Ben & Jerry’s, Jeff Bezos of Amazon.com, Mark Zuckerberg of Facebook).
2. What is my tolerance for risk? Nothing about starting a business is for the faint of heart. Even with enough passion to launch a
successful venture, you may find any number of circumstances hastening your failure: a location that turns out to be less than ideal,
a problem with city or state zoning boards or a kink in the supply chain that can’t easily be ironed out. There’s no guarantee of success,
or even a steady paycheck. If you’re risk-averse, entrepreneurship may not be the right path for you.
3. Am I willing to put together a business plan? There are a whole host of decisions to make as you launch your own business. Creating a
business plan allows you to be thoughtful and answer the typical start-up questions. Do I work from home or do I lease office space? Do
I hire employees? Do I pursue high-end clients or sell to the masses? Do I incorporate? Do I advertise? Do I borrow money from friends or
family? Do I use my entire savings? Once you’ve drafted a business plan, consider asking trusted colleagues and an attorney to review and ensure you’ve
covered your bases.
4. Do I understand my strengths and weaknesses? It’s critical for a business owner to understand their innate strengths and areas of
weakness. Understand your strengths to capitalize on them; understand your weaknesses to fill the gaps. For example, if you are amazing
with numbers but dislike sales, you can lead the operations of the company and enlist help for marketing/sales. Talk to your coach about
taking our Transition Assistance career and personality assessments (Myers Briggs, StrengthsFinder, StandOut) to perform a realistic
self-assessment to uncover your talents and strengths.
5. Will I be able to avoid burnout? As you launch your business, you may find that you are investing a lot of time and energy into
making it successful. You may be able to focus on activities that energize you but also be faced with challenges that are draining. In
order to maintain your creativity and enthusiasm, consider committing to healthy habits and stress management.
6. Do I have the financial resources to support this venture? A significant risk that entrepreneurs are faced with involves money. No matter
what business you decide upon, there will be some level of “personal” investment required. Set realistic financial objectives, define your
‘break even’ point, and track your progress to get there. If you have an innovative idea, reach out to funds, grants or venture capitalists
who may be interested in supporting you. Consider this - if you are not willing to lose the money you invest, then don’t put it on the
table!
Take some time to mull over these questions, do some soul-searching (by yourself or with your coach!), and then if you think you have what it takes, go for it.
Here are additional resources to explore as you consider starting your own business:
1. SBA – www.sba.gov
2. SCORE – www.score.org
3. The Grantsmanship Center - www.tgci.com