Taking the plunge: How to approach your first business

Once upon a time, very few people in the world wanted to leave the safety net that a so-called “standard” job provided. In other words, opting for self-employed life was too much of a risk.

Over the last few years, this has changed. Whether it is because of the internet, or even times of economic hardship pushing people to make decisions, we’re not going to speculate too much. However, the movement is welcomed, and long may it continue.

Even though more people are taking this initiative, it doesn’t mean to say there are fewer risks. On the contrary, the risks still exist, and there are most definitely right and wrong ways to approach that first business.

Today’s guide will now take a look at this in-detail, to show what you need to consider if you are sat on the fence about starting your own company.

What’s the market like?

The term “market” is usually attributed to global businesses, but in truth it applies to anyone. You might be starting life as a self-employed builder – and the state of the local market is something that is going to impact you just as much.

Bearing this in mind, take a look around, and find out which areas are prospering. You can check out studies, or even find out how competitors are doing. It’s something that can just manage your expectations, and help you discover if starting a business is the right thing for you at the present time.

What are your finances like?

There are some fantastic stories of some businesses starting out with very little money – but this can distort the picture somewhat. In general, you do need some money to get things off the ground, so first and foremost make sure you are in a position to make this initial investment.

However, this issue isn’t just about your business expenses. It’s also about how you are going to cope personally. Let’s not forget that it’s not just about small profits as a new company – it’s about making enough money for you to live on. This can be difficult during the early days, so try and make sure that you put some money aside so you have some leeway. How much do you need? Some experts recommend that this is six months’ worth of living expenses, although others say that this should be closer to the 12-month mark.

What are your time commitments?

Finally, let’s talk about time. It’s not a newsflash to reveal that starting a business is time intensive – but some people don’t quite realize what this entails.

The best way to describe it is to compare to your current job. This might be a technical role, where you are responsible for one element of your product.

Well, when you start your own business, this expands to multiple roles. You now have to do the marketing, close the deals, cash the cheques and calculate your own tax.

Not only does this infringe on your own time, but you have to question if you have the ability to carry out these sorts of tasks.

Published by Kidal Delonix (1194 Posts)

Kidal Delonix is a contributor to Mr. Hoffman's blog. The views and opinions are entirely his/her own and may not reflect Mr Hoffman's views.

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