Many people believe starting a business
is a mysterious process. They know they want to start a business, but they don't
know the first steps to take.
You're going to find out how to get an idea for a
business--how you figure out exactly what it is you want to do and then how to
take action on it.
But before we get started, let's clear
up one point: People always wonder if this is a good time to start their
business idea. The fact is, there's really never a bad time to launch a
business. It's obvious why it's smart to launch in strong economic times.
People
have money and are looking for ways to spend it. But launching in tough or
uncertain economic times can be just as smart. If you do your homework,
presumably there's a need for the business you're starting. Because many people
are reluctant to launch in tough times, your new business has a better chance of
getting noticed.
Consider the Pros and Cons of Working for Yourself
The first big question you'll need to
answer is whether the benefits of being your own boss truly outweigh the
disadvantages.
Pros: The
pros are pretty obvious, since they're the reasons millions of people dream
about ditching their conventional jobs. Your reasons for starting a business
should include several of these motivations, rather than, say, just doing it for
the money opportunity:
- You can make a living doing what you love (or at least what interests you)
- You're in control of every aspect of your work life, from when you work to where and with whom
- You can choose which clients to work with and which projects or what kinds of business to go after
- You might find better work/life balance
- You may get things done faster and better when you're free from office politics and red tape
- You have a chance to earn more than you would working for someone else.
- You'll have greater job security. That might sound counter-intuitive, but business owners typically have multiple clients, which lessens the pain if you lose one of them. Employees, on the other hand, have only one "client," their employer.
- You build something that's all your own, which gives you a great sense of accomplishment and also life purpose.
Cons:
There's a flip side to every coin. Which of the disadvantages below will really
trouble you?
You'll have to deal with an uncertain
income and possible cash flow problems. Especially at the beginning stage of the
business.