You may have dreams of being your own boss or even the CEO of your own company, but do you know what it takes to make it happen? Do you dream of taking a leap of faith and launching your own business? It can seem overwhelming and like it’s only meant for a chosen few, but the more you know about something the less overwhelming it gets.
I’ve had dreams of owning my time for years, even if it meant I needed to work more than the typical 9-5 to make it happen. I knew I needed money and reasonably consistent revenue, but had no idea how much money or how much revenue I really needed to make my side hustle my full-time gig. I’m always concerned about having enough to pay taxes, cover my expenses, and save for retirement. The good news is that all of this is figure out-able, but first you need to be certain that entrepreneurship is for you.
The truth is that not everyone has what it takes to start a business. There will be a lot of bumps along the road and many people will walk away. If you’re scared that you’re going to be one of those people and you don’t want to fail, there are some telltale signs you are on the right path.
Do You Have Passion and Purpose?
When you’re an entrepreneur you have to have a passion for what you are doing. You’ve probably heard this a million times, but it’s true. It may be a long time before you actually see any money from your venture so you have to truly care about what you’re doing on some level. Potential income isn’t going to sustain you when you’re creating blog posts, making videos, or trying to build an email list and no money is coming in if you aren’t passionate about what your business does.
You don’t want to crumble at the slightest sign of pressure. If it’s something you love you will be motivated to power through even when things don’t look so good.
Can You Risk It?
Being self-employed or a business owner means that your income might not always be stable and you will have to make some tough calls without all of the information. Your big idea might flop, but it also might be the thing that propels you to millionaire status. When it comes to starting a business you have to know that you have a high level of risk tolerance. Nothing is ever guaranteed.
You need to sit down and take a careful look at how much risk you can tolerate. This is especially important for your finances. You need to determine how much of a financial hit you can take should you never make a profit or until you make a profit. You can mitigate this risk by saving up 6 months to a year of your expenses so you have time to build momentum. If you’re pretty risk-averse but still want to take the leap you can save even more in your emergency fund.
You may find yourself having to invest quite a bit. A few things you may need upfront are computers, software, mobile card reader, or even office space. There may also be a learning curve, where you need to take a course or learn some tips for using your wireless terminal if you will be doing sales in person. Buying these things or taking these courses before you leave stable employment is a great way to learn and prepare while you’re still earning and saving.
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Are You Resilient?
If you get knocked down nine times are you going to get up ten or stay on the floor? When it comes to entrepreneurship you have to make sure that you are resilient. This is a wrestling match where you need to jump right back up if you get knocked down even by the biggest bully out there.
You can rise. There are times when it seems as if the punches are coming from every direction when you are in business. The trick is to be a trooper and power your way through. For example, if you’re on Threads or in any blogging group you’ve been inundated with messages about algorithm updates. Some people have thrown in the towel on businesses they’ve had for years because an algorithm update tanked their traffic. Others took the hit on the chin and changed their business model. Which one would you be?
Things may look like they are going to collapse and become dust at your feet that the wind can blow away. However, there will be times when you feel as if you’re about to win an Academy or a Grammy award or something cooler like meet Beyoncé. The feelings are drastic and varied, embrace all of it!
Do You Understand the Market?
Before you dive all in and find yourself stranded in deep waters you need to ask yourself if you understand the market that you are getting into. There may be a lot of sharks out there in the water and you need to know how to navigate them. You don’t need to know all of the ins and outs before jumping in but you shouldn’t be a complete novice. The great part about that is there are courses and YouTube videos to help you understand more about your chosen market.
You don’t want to lose everything you’ve worked so hard to build. Do your research ahead of time so you have an idea of what to expect. You want to stand out in your market to get attention and sales, but you don’t want to be so different that no one understands what you’re doing. Research will help you find the balance and innovate.
