Creating wealth and fortune are two different things. If you are employed either by a parastatal or private organization, the chance is you will become wealthy. That’s thanks to the basic salary and allowance offer. But did you know your paycheck can’t create a fortune? That’s why you need to start a business. Creating your own company gives you the chance to accumulate significant money outside of a set wage. You must think about company registration before making this big decision. In addition to giving your company respectability, registering it gives you access to a host of advantages including legal protection, business credit availability, and the capacity to conduct official transactions.
According to the Kauffman Index of Startup Activity, about 540,000 people start a business in the US. These are startups that register every month. However, not all enterprises live to their full potential. About 80 % of the companies survive the first year, ½ push through to stay five years or more. But only 1/3 of the startups make it to their tenth anniversary. This explains the country’s GDP, which stands at 20.93 trillion USD.
Unfortunately, the narrative is different in the Philippines. Many Filipinos fail to start a business due to various reasons. This could be because of capital, taxes, experience, among other facts. Though you might have checked some of the boxes, there are still certain things you need to ask yourself before starting a business. To give you a deeper understanding of your future as a business person, here are nine signs to prove you are ready to become an entrepreneur.
So, here are the main signs that you’re ready to start your own business.
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You’re passionate about the business
Before we get to anything else concerning your business, are you passionate about it? If not, your efforts will be in vain. That’s because a successful entrepreneur is driven by desire rather than cash.
Hence, if cash is your driving force towards starting a business, you need to reconsider. Remember, you will be scarifying a lot to see the company grow, including time, money, relationships, and energy. This begs the question, are you ready to take this path? If yes, then you are on the right track and prepared to become an entrepreneur.
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There a need which has to be met in the market
For your business to be successful, there has to be a need to tasty in the market. Regardless of the product or service, it has to fill a market gap. Consumers are willing to spend top dollar if what they seek solves a problem they have. Studies have shown that most startups fail at the initial stages since they don’t meet consumers’ needs.
Therefore, before starting your business, survey to prove your idea would be relevant to the market. Furthermore, market research helps you to curve your target market and price your products accordingly. You wouldn’t want to over-charge or under-charge your products in the market. That affects your profit margin in the end.
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You have the business knowledge and industry experience
Now that you’ve established there is a market gap, are you experienced in the field? Operating a business you know nothing about is a disaster waiting to happen. For example, if you are a teacher and opting to venture into a car retail business. It would be best if you educated yourself about it before starting the business. Take classes online or offline, ask for advice from the expert in the field.
That involves learning about marketing techniques, daily operations, bookkeeping, and balancing. However, you can hire an accountant to handle your books. It is best if you know what cash comes in and out of business. Once you are sure you have learned all the ins and outs of the company, you are ready to go.
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You have a business plan
This is the next stage when looking to start a business. A business plan helps to explain how you will be making money. Plus, it defines what your business model is all about, the target market, and the capital needed to run the business.
For his reason, we recommend taking time off your busy schedule and draft a business plan. If you can, there are short courses you can take or hire a professional. But ensure you have all the facts right when drafting the business plan as it determines the lifeline of your business.
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Your financial position can sustain the business
Now that you have a business plan drawn, what’s your financial position?. For the business to carry out its daily operations, capital is needed. You could opt to use your savings or even seek a loan from your friends or family members in most cases. All in all, the business needs to keep moving to make profits.
Therefore if you lack financial strength, you can seek loans from financial lenders. Some of the institutions will require you to have a good credit score to access their business loans. However, there are s some who won’t need your credit score. One of the known reputable lenders in the Philippines is Robocash. They offer quick and affordable loans to help with financing your business.
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Having a solid team in place
If you want to travel fast go alone but if you’re going to reach far walk with others. That’s true according to Startup Genome, businesses which have solo founders take 3.6 times to breakeven, unlike businesses with partnerships. That’s because each person has something unique they bring to the table.
Considering you can’t master all the functions of the business. Nonetheless, if you are a solo entrepreneur, you can still create a solid team. This is done by hiring professionals who handle your daily tasks. For example, you might need an accountant to handle the books, including an operation manager.
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Having a solid support system
Success in your business is all about team effort and not an individual effort. You will need a support system in your personal and business life. That means if your family doesn’t support you 100%, then your business is likely to fail. On the same team, you need support from entrepreneurs who are in the same field.
Furthermore, talking to them helps you to understand the business in-depth and make calculated moves. Hence build your network and make sure you maintain the connections. You will surely need their support in the future.
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Consistency and taking a calculated risk
Starting isn’t a walk in the park. It takes a lot of effort and determination to ensure your business is running. But if you are starting a business to escape your 8 am to 5 pm job, you are in the wrong boat. Many entrepreneurs work for 40 hours a week, which means there is limited time to catch some sleep.
You are required to be on your toes to ensure the business is running smoothly. This is a consistency the industry needs to thrive. That’s why most entrepreneurs refer to their business as small babies.
Once you have established a pattern that works for your business, you need to take a calculated risk. An intelligent business owner takes risks despite the social, economic, and political risks. That said, you need to evaluate the outcome before taking the risk. Therefore, take time to out-way the positives and negatives of the business and leap if the odds are in your favor.
One warning sign you aren’t ready to become an entrepreneur
Unfortunately, not everyone is cut to become an entrepreneur. One warning sign that cuts across is you are not ready to listen, learn and even change. Being an entrepreneur requires one to be stubborn, which is good, but at the same time, it’s your downfall. Therefore, before dismissing an idea or business proposal, listen. That goes a long way into building your business. Learn creative ways to handle your consumers and make changes when needed, don’t be a ridge. But if you can take the three aspects, then the business world isn’t meant for you.
Bottom-line
The main aim of starting a business is not making profits but solving a problem, which translates into profits. This is why we have crafted eight signs to show you if you are cut out for the business world. Once you have ascertained that you check all the boxes, you can proceed to start your firm. However, if you lack the capital to run the business, let alone start it, there is a Citibank personal loan being offered by Robocash guide: robocash.ph/articles/citibank-personal-loan-and-credit-card
The loan is flexible and sustainable till you get back to your feet. Therefore don’t postpone starting your business because of the funds; reach out to the firm, and your dreams come true.
