Your Own Business – 7 Tips Before Starting

Owning your own business often seems like the ultimate. However, the grass is not always greener on the other side. It is important not to be blinded by the potential rewards. Do you have what it takes? You need the right skills, determination, financial backing, etc. There are also several serious and potential fatal risks. The following tips act as a guide before starting your own business:

1. Make sure entrepreneurship is for you. Entrepreneurship is not for everyone. If you feel more secure in your comfort zone and are risk averse then chances are you are better off where you are, there is nothing wrong with that. Entrepreneurship needs passion, a certain amount of risk-taking, and the motivation and dedication to succeed when everything seems to be stacked against you.
2. Oneofbear the risks. Financial risk, including possible bankruptcy, is a real threat if things go wrong. Less obvious risks include social, occupational, and psychological risks.
3. Build has frame support. Sometimes running your own business can be quite difficult. The more support you have, the better your chances of surviving in these times. It pays to make an effort to make your family and friends feel positive about the business.
4. Get the right partners. Starting a business on your own is often inadvisable (or even impossible). A good synergy between partners can drastically increase the potential of a business. Unfortunately, many business partnerships don’t work out and are often disastrous. Choose your partners very carefully and make sure legal contracts are in place for any potential “divorces” in the future.
5. Prepare diligently. Having your own business usually means a lot of hard work. This should start with a proper feasibility study and business planning. Is there a big enough gap in the market that your company can fill? As you do? How will it be financed?
6. Be realistic. A new business is never just moonshine and roses. It tends to take much longer than expected to break even and requires much more resources (especially financial) than is normally planned. Reflect this in your cash flow planning.
7. Get expert advice. When you lack specific skills, it’s much cheaper to pay for them up front than later when the business doesn’t work. The advice of auditors, lawyers, bankers, consultants and other experts should be sought where appropriate.

Copyright © 2008 – Wim Venter