Owning and managing a business is a rewarding experience - provided you know what it takes.
Starting a business is risky. Many small businesses cease to exist within their first two years. Put the odds in your favour by doing some simple research into the knowledge and skills required.
There are three areas to consider.
Your motivation for starting a business
The motivation for starting a business often ignores the basic need for a sound basis on which to build it. Consider your motives for wanting to go into business:
- frustration in your job
- wanting to do something different
- wanting to build an investment for your family.
None of those reasons are good enough to start a business. You must have goods or services to sell and they must be in sufficient demand to generate a satisfactory profit.
Ask yourself if being in business will satisfy all your wants and dreams, both personally and financially? And what impact will running your own business have on your lifestyle and family?
To avoid the pitfall of 'buying a job' and struggling to survive, calculate the minimum financial return needed to make the business more profitable than your current job.
Work out how much you would need to earn from your business
Your abilities for going into business
To succeed in business you need to know your strengths and weaknesses. Are you a person who could start a business and make it succeed? Remember - be honest with yourself!Assess your abilities for going into business
Your business skills
Are you able to bring the necessary skills to the business to operate it and make it succeed? What skills do you have, what gaps exist and what actions do you need to take to remedy shortcomings?
Assess your skills before going into business
ContactSmall Business Contact Service
Phone - 1300 142 820