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Step
1:Read this article...
There
are no magic tricks, easy shortcuts or quick fixes to bring about success in
business. There are no guaranteed recipes to follow or formulas to apply,
although there are certainly basics that you must know and use. Reputable
and honest business advisors all agree on one thing – despite all the
advice and knowledge you may glean from books and experts, at the end of the
day, success generally comes to those who are willing to "do the hard
yards" – that is, to apply what they know with understanding,
persistence, common sense and guts – and when they realize there is
something they cannot figure out how to do, seek advice and help from a
trusted advisor.
This
means working smarter rather than working harder, although long hours,
stamina and much physical and mental effort will often be called for.
Success also requires working on your business, to make it better
able to survive and succeed, rather than just going to work each day to work
in your business.
Going
into business is one of the most important and exciting decisions you’ll
make in your whole life, and relying solely on ‘gut feeling’ is not the
way to approach it.
The
consequences of making a wrong decision can be disastrous so the purpose of
this article is simple – to help you reduce the possibility that you will
make a bad decision about going into business – a decision that can have
traumatic and long-term consequences for your health, wealth and family.
This article will provide you with some questions that require serious
thought before you make the decision to go into business on your own. Your
Accountant can provide you with active knowledge and practical understanding
of all the issues you’ll face when going into business on your own but the
first stage of preparing to go into business is a very personal one. It
concerns and involves you, your family and your closest friends and
advisors. It requires a great deal of ‘soul searching’ and candid
assessment of your abilities, strengths, weaknesses, and motivations. The
results of this process may be either painful and disappointing, or
rewarding and challenging. But it is a most essential part of the whole
process of going into business. Before you start spending serious sums of
money, or get too far into the thinking about products and customers, a
business location or a business name, or doing all the other things
necessary to get the business started, you must first decide if you have
what it takes, and whether you are suited to owning and running a small
business.
Here
are some critically important things you must consider before starting your
own business.
You
must:
-
Be
fully aware of the importance of thoroughly and honestly evaluating your
own personal ability and motivation to undertake the role of
owner/manager of a small business.
-
Know
the essential questions to ask about going into business, be able to get
the answers when you need them and weigh them up objectively.
-
Know
what running a small business involves, in broad but practical terms.
-
Be
fully aware of the dangers of getting into small business, especially
doing so without adequate preparation.
-
Understand
the value of getting all the help and advice you can from others, both
before starting your business and once you have it up and running.
You
will then need to be able to:
-
Sort
out what needs to be done to move your original idea, dream or scheme to
the point where it can be seen as an achievable and realistic goal.
-
Compare
the benefits and costs of your emerging business idea and plans against
such criteria as your personal and family life goals and priorities,
your personal values and visions for life, the inherent risks associated
with self-employment and the major responsibilities involved.
-
Assess
the likely level of your commitment to the new business.
-
More
objectively consider your personal motivations for going into business,
and your expectations from doing it, and be able to compare them.
-
Rate
yourself in terms of the essential skills needed for small business
ownership and management.
-
Decide
broadly on the type of business most appropriate to your experience,
skills knowledge, ambitions, interests and the kind of person you are.
-
Assess
how suited and prepared you are to go into the type of business you are
considering.
-
Make
the best possible decision, be it (1) to proceed, (2) to not proceed,
(3) to put the idea on hold until more experience is gained or (4) to
get more advice and help.
-
If
your decision is to go ahead, start to formulate and evaluate your broad
business idea as the first stage of putting the business together and
draft an action list of things that need doing with time frames and
'do-by' dates.
In
summary if you are:
-
Looking
at self-employment as a better alternative to being unemployed or
working for a wage or salary in a job that you dislike and/or which has
little future.
-
Wondering
whether owning and running your own business is the best course of
action and your family, all things considered.
-
Trying
to decide whether you have ‘what it takes’ to be successful in your
own business.
-
Not
really sure what skills and abilities are needed, or whether you have
them.
-
Wondering
if you have the necessary drive and motivation to make it all happen.
-
And
concerned about the widely reported 30 per cent of businesses that fail
within the first year and 75% that fail within the first 5 years;
You
should consult your Accountant before making any business ownership
commitments. He or she will help you answer all of these questions and reach
a decision that is right for you.
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