15 Questions to Ask Before Going Into Business
Most of us are employees. We are in the corporate life. We have a boss. We have a definite time of work schedule. We are entitled to wages and other benefits. We love job security. Sometimes, we are called “corporate slaves”.
Going from employee to entrepreneur is really a one big leap for you. But this leap is risky. Your guaranteed salary will be cut. What happens if your business did not click? It would be better to anticipate the effects before you go into business.
Here are some questions you might want to ask yourself and ponder before taking that one step leap and decide to go into business.
1. Do you enjoy the employed or corporate life? Will you miss your employed or corporate life (the pace of work, office, friends, the parties, etc.) if you decided to leave it? What is the real reason why you want to leave your corporate life?
2. Is this the appropriate time for you to start a business of your own?
3. Do you picture yourself as your own boss and the boss of your employees-to-be?
4. Are you prepared to face the challenges, problems, and the nuances of starting a business?
5. Have you spoken to many of your friends about your decision to start a business? What did they say about it? What are their opinions?
6. To what extent are you willing to take the risk of a business start-up? Do you have enough of a nest egg or buffer money to support you (and your family) while your business is not making enough income yet?
7. Do you enjoy dealing with people? Do you have the right “personality” to become an entrepreneur?
8. Are you prepared to face the competition without the corporate support that you are accustomed to?
9. Are you willing to spend more time for your business beyond the regular eight-to-five work routine? Are you healthy enough or have the stamina to work long hours in your business?
10. Do you want your own business because you like earning more, and feeling independent and fulfilled?
11. Do you have the right product or service idea as basis for your new business? Have you studied the feasibility of your business product or service idea?
12. Do you have access to capital? How much?
13. Who has/have influenced you o start a business? Have you found a mentor who will coach you in your new business?
14. Do you have the skills to manage a small business? Do you have planning skills? Do you have the right educational background or technical skills?
15. Do you know anyone close who has the same business as the one you are planning to start? Is there anyone in your immediate family or close relatives who are full-time business persons? Who are they?
You may want to go through the preceding list again, and think again of the questions to which you do not have definite answers yet. Reflect on your answers to be sure that you have covered almost everything you need to consider. Be honest and truthful to yourself.
As for me, even though I have the drive and entrepreneurial spirit to go into business, I would give myself more experience in the corporate world and networks before I go into business aside of course from the capital. I decided to go into a business before when I was 23 yrs old by venturing into an internet computer shop that never operated because I had problems with my business partners. I almost lost all capital that I put in to that business if not for the 2 PCs I was able to sell. I lost a big chunk of my hard earned savings. Lesson learned: Choose your business partners!
Furthermore, I had the chance to venture again into a small call center business before. I met with the owner of the company. He wanted extra funds to expand his business. He presented a cash flow projection and offered me a 75% return for 1 year. But after careful deliberations, I decided not to give into it. The business was not ripe for expansion. Later on, I found out that he closed down his branch in Makati.
Going from employee to entrepreneur is really a big risk. Be extra careful and ask yourself the following questions before going into business.
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Tagged with: Business
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12 comments
Nice tips for those willing to start their business. You have make nice bunch of questions.
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Hi Tyrone,
This article will be very helpful to employees and even the unemployed to decide and come-up with the right decisions in entering the business world.
I just want to add one question…
…Do you feel that business is what God wants you?
Thank again for sharing this post.
Vic
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Having a business is not for the weak of heart. One must have patience, capital and capability to deal with problems in the long run. A simple business is like a small empire.
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well I guess I am undecided about this matter. I would rather test the waters first. I would work as a part timer in my current job and then open a business. That way I wont be letting go of my job for an uncalculated risk. journeytobeauty.blogspot.com
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you have a nice set of questions here and your learning from your bad experience with partners should serve as warning for future would be entrepreneurs.
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Just goes to show that starting an own business needs real hard work and hard thinking on our part. Most people just jump head first and failed so bad because of that…
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I am OFW, do think it would be advisable if I will start my business plan and be manage by my wife? or will I quit my job for good and doing business in our home country? please advise
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Hi Rouwell, I think that would depend on the business that you would like to start up. Have you done your feasibility study on it? Have you done cash flow projections? If you think that the business is viable, then you can start it. Test the waters first. If it’s a food business, then have a taste test among your friends. If, in the long run, the business that you set up has enough income to sustain your needs, then that would be the only time to quit your job and concentrate more on the business. Otherwise, I would suggest to stick on your job while you wait for your business to grow.
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[...] 15 Questions to Ask Before Going Into Business [...]
i broached this idea to my colleagues who were thinking of going into business full time. but accountants as they are, they find it too risky. i even showed them an article “So, You want to be an Entrepreneur” from the wall street journal which asks the first question: Are you willing and able to bear great financial risks?. They all shook their heads.
But there are success stories. Even a company messenger took a shot at doing business. No feasibility studies, not even large capital. He’s better off now.
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At young age, I am very excited to have a job but I realized that my income will be a fixed income, whatever effort you give to your boss will not change the salary you sign in the contract and rank in file will send you at aged to reach the top position. I got discourage and open my mind to seek opportunity like mlm, retail, buy and sell, etc… It feels much better than being employed. I work part time and do business full time.
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Helpful and informative blog. It does scare me that some people who have only been employed in business for a few months think that they have enough experience to work for themselves. I personally think that you need a lot of experience, a lot of business training and nerves of steel to branch out on your own. Otherwise you’re going to find yourself dead in the water.
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