EMPLOYMENT CENTER AT THE CORNER: 8 signs that you are not ready to start your own business
“Starting and running a business requires a lot of energy. This is very risky, ”says Rani Langer-Croager, co-founder of Uptima Business Bootcamp.
There is nothing shameful that you prefer to work for hire, because some people do not have an entrepreneurial spirit. And although, according to Langer-Kroager, you can develop entrepreneurial qualities in yourself, but business is something that “you cannot help but do.”
Langer-Kroager identified eight signs, from a willingness to take risks to an approach to personal finances, which suggests that you are probably better off staying in your current job – at least for now.
1. You are not very willing to take risks
The harsh reality of starting a new business according to Fundera: about 70% of startups cease to exist within 10 years.
Even if your product or service is fantastic, there are many obstacles that you may trip over – for example, money or energy can run out. To cope with the risk, each entrepreneur must determine for himself when his business will begin to make a profit – and, therefore, he will be able to get a normal income.
According to Langer-Croager, this schedule should be “tied to your own financial well-being.” In other words, determine how long you can afford to develop a business without getting any returns from it, bearing in mind that a startup can never become profitable. This “makes managing this risk a little easier,” she adds.
2. You have a poor mentality
“People with a poor mentality believe they lack opportunities or resources,” says Langer-Croager. This can lead to despair, which, in turn, will force you to choose ways that harm the business, rather than grabbing on more suitable opportunities. She said that even experienced business owners fall into this trap during periods of recession.
According to Langer-Croager, “working on your own relationships with money and the realization that these relationships can have deep roots” will help to remove this obstacle.
3. You seek quick profit
According to Small Business Trends, only 40% of startups become profitable, and 82% of small business failures are associated with unsustainable cash flows.
Langer-Kroager says it may take years for a business to start generating enough profit so that founders can already get paid. “If you try to make money fast, this will put a lot of pressure on the business, which will not allow it to grow the way it should grow,” she emphasizes.
4. You do not understand business indicators
Langer-Kroager says it’s important for an entrepreneur to have a good understanding of financial performance. If you do not pay attention to them, you can skip important tips about the need to adjust the plan based on actual rather than predicted performance.
“The lack of such work with finances,” she says, “can lead to emotional, not informed decisions.” And that could mean disaster for your cause.
5. You do not have a clear business plan
A study at the University of Michigan College of Entrepreneurial Dynamics confirms the argument that a good business plan increases your startup’s chances of surviving.
“I urge you, when starting a business, to conduct market research and then write a plan,” says Langer-Croager. Even if you have already opened your own business, it is not too late to create a plan that will give you a guideline on how to achieve goals and adhere to a specific mission.
6. You have not tested your business idea in the market
A study by CB Insights, which examined the reasons for the ruin of startups, showed that the main one among them is a product without a market.
According to Langer-Kroager, “you can spend a lot of time, effort and money on creating something that will not be accepted on the market”, so be sure to conduct a market research before implementing your business idea.
It can be anything from polling and testing several prototypes to the help of a mentor or consultant with experience in your industry.
7. You are not ready to go out and sell your idea
If you know someone who is running their business, you most likely have heard their complaints about marketing – one of the least favorite tasks of many business owners.
“This is a personal business, so you really have to invest your whole soul,” when you have to sell yourself, says Langer-Croager. If you cannot overcome your fear of being in the spotlight and becoming an apologist for your business, entrepreneurship is probably not for you.
8. You are too used to relying on yourself
“Once there comes a time when you need to hire people and delegate tasks that you shouldn’t waste time for business development,” says Langer-Kroager.