How to become an Entrepreneur FAQs
Starting up on your own by becoming an entrepreneur is one of the more colorful options which young graduates choose, and why shouldn’t they. After all who doesn’t like to be boss? But before you make a commitment, there are some serious questions which you need to answer first. Like these perhaps.
Are you ready for the startup lifestyle?
If you are currently working as an employee for another company, then starting a new business on your own, as an entrepreneur, will definitely be a lifestyle change. That being said, it is very important to not assume that it will be a sure fire way of getting rich quick, or it will be an easy escape from all your problems. Starting up a new business from scratch is going to be hard work. It will require a lot of dedication and determination, as well as learning at your part. And it will only start to pay off in the long run, so take a close, honest look at yourself and your strengths and weaknesses before making the leap.
Do You have the Customers?
While you might have conviction about your new great idea and people might love it too, which is a good thing but will it be necessary. Not quite. While a customer might like the product or service you are offering, they generally only end up paying for the things they really need, be it physically or emotionally. Another reason might be that the customers might like the product you are offering, but may not have the sufficient money to spend on it. To stay ahead an entrepreneur needs to talk to other experts in the same field and find out the hidden challenges and the requirements to get past those challenges.
Is the Opportunity in the Market Large?
Again, it’s not a good idea to only go on a hunch. Before you enter any market niche, it’s important to look at the market analysis from a credible source. This usually means looks at data from a well known market research firm. Carrying out a simple search on one of the search engines should get you the names of all the nationally known market research agencies in your area.
Is it Crowded Already?
Well, this one is easy, all you need to do is carry out a simple search on a search engine to find out what you are looking for. Enter the market niche in the search bar to find your competitors. A quick search will also let you know how much competition you will be up against if you enter a particular field.
Does Your Solution Have Hidden Costs?
It is also important to remember that most products never make it to the customer because they have hidden costs or dependencies. For instance, cars that use hydrogen as fuel are great for the environment, but finding a service station in other parts of the world will be difficult. It is necessary for an entrepreneur to make sure that they properly understand all the costs, channels for sales, local and cultural issues and marketing requirements before they decide to provide a product or service to the masses.
Can You Defend Your Idea Against Competitors?
Picture this, you have a great idea for a product or service, but a patent has already been submitted by someone else, it’s just hasn’t been commercialized yet, so what do you do? Carrying out a simple Google Patents search or logging on to the US patent office website will provide you with all the information you want to know. Or another option is always hiring a patent attorney to do the same research for you.
Can You Build a Qualified Team?
While the Lone Ranger might have been your favorite TV show as a kid, it doesn’t work out quite that well in the real world, especially if you’re an entrepreneur. You will need to assemble a team of highly qualified professionals for the development and management of your business. This is the one area which is difficult for most entrepreneurs to master, but once you strike the right balance, everything else should fall into place. This is also one of those areas where most headstrong individuals and introverts done excel in either.
Have You Looks Realistically at the Costs?
Most entrepreneurs who are very passionate about what they do often tend to build up rose colored plans when it comes to their business. For instance, they can do this by over estimating their sales targets or underestimating their total costs. To stay safe from building castles in the air, an entrepreneur should come up with a tangible business plan that makes financial sense and gives you a clear direction of where you need to go. If you’re still not sure, you can have your business plan checked by an expert, just in case.
Do You Have Skills?
Needless to say, as the founder of your own startup business, the buck will always stop with you. This means that there will be no room for playing the blame game whenever things go south. The fact of the matter is that most startup businesses often fail not because the company ran out of cash buy because the people in charge just gave up. To keep that from happening, focus on improving performance to maximize your staying power. This can only be done by learning new techniques and tricks of the trade.
Going “From” Rather Than “To”?
If you’re only becoming an entrepreneur because you want to get out of an existing role, you will find the transition to be even more stressful and unsatisfying then you might have expected. The point here is that people who are already bored of what they are doing in their current jobs make far better entrepreneurs than those who just feel exhausted with working long hours and fee stressed out. It is important to remember that just because they say the grass is always greener on the other side, does not mean that it actually is green. So, don’t quit your current job unless you are absolutely sure you can take the challenge of being an entrepreneur.
Do you need Professional Help?
Okay so you have found the market which you want to pursue, you’ve even found a nice spot from where you want to run your business. But you’re not done yet! Negotiating a lease which is suitable for both you and your business is almost as important as finding a perfect location. To do this make sure you have got a good lawyer who will be able to negotiate the cost on the lease. A qualified lawyer can help explain the build out allowance, the condition of the property and the terms on the lease.
They can also assist you in talking to the landlord of the property and asking them the right questions about their property. Also, making use of the local real estate professional is always a good idea to help you understand the available options better. This will depend mainly on the type of business you wish to start. Finding a qualified real estate agent shouldn’t be a problem because every town has at least one good real estate agent who knows the whole city like the back of their hand. A good real estate agent studies and has a good idea of different demographics and traffic patterns which you could use to your benefit.