What to know about starting a business

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We have all heard about the American dream which presents the idea that freedom includes the opportunity for prosperity and success, and an upward social mobility is achieved through hard work. I am one of those dreamers who have a dream about making it in this world, and achieving something of my own once in my lifetime. The thought is really tempting, as it implies a kind of freedom in being your own boss, an opportunity to create a name for yourself, and of course the prospect of riches and fortunes. The world is open for everyone after all, so what is there to lose?

The Questions that You Need to Ask Yourself

Before realizing the startup dream there are something that you have to consider, as I have recently read in an article in Forbes Magazine.The article is about whether or not starting a business is a good idea, and it lists 10 so called “reality checks”, which everyone who has a dream about becoming a business owner really needs to deliberate with themselves. I have plucked out 5 of those questions that I found really helpful, and there are the following:

1. Are you ready for this kind of lifestyle? This question refers to a lifestyle of a business owner, which often involves stress, hard work, dedication, and a seriously huge amount of time, before the business pays off. Here you really need to look at yourself and decide whether or not you can cope with having

2. Do you know the market? This is a serious issue, and if you don’t know the market before you start a business, you may be setting yourself up for a real disaster. You need to make the research and don’t trust your own judgment on this one.

3. Is it a crowded space? This is a question of whether or not your business idea can be successful. If there is a lot of competition it might be really hard for you to succeed in that area. Therefore it is important that you research this as well.

4. What about the budget and costs? This is a really important aspect of any business. You need to know your budget, and you need to know if your solution have hidden dependencies or costs, so you don’t get any nasty surprises. In other words, you need to know what you pay, what you earn or lose in profit and what you need to pay in taxes.

5. Do you have the necessary stamina and skills? Being a startup requires a lot of leadership skills. You have to have strong determination, can build a motivated and qualified team, and you have to be ready for demanding customers. Selling your idea or product to someone as well as being a leader means that you have to have a large amount of patience. Some customers or coworkers may be hard to deal with, and some may be a real pain, especially the demanding and complaining types. If you don’t know how to deal with the problems that may come up, your business may never be a success.

Ready to start?

If you have considered all the above criteria, and still have the confidence that you can be a business owner, you should not hesitate in starting. All you need is the start capital, a great business idea, and a lot of courage.

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