Starting Your Own Business Basics: Are you cut out for this?

Many people drool at the thought of starting their own business - getting rich, famous and living like a king. A select few may be able to make this dream come true but the road is almost always a rocky one. Luckily, the Money Chick's "Starting Your Own Business Basics" are here to help you along the way.

Starting Your Own Business

Basics:

Are you cut out for this?

 As much as we'd all like to think we can be successful business owners, it's just not true. Before making the jump (which may be financially, emotionally and even physically draining) you should really think it through and decide - Am I cut out for this?

 Keep in mind, The Money Chick will address the problems included in each paragraph in future posts! The main point here is to make you aware of these possible problems and obstacles so you can decide if you're capable of addressing them.

Are you emotionally stable?

Many people find it hard to answer this question honestly, so let me rephrase; Can you handle setbacks, possible financial difficulties and harsh criticism? As I said before, the road to a successful business is often rocky and it most certainly won't be all money and upgrades. Sales can go up, down or stay reasonably steady. A business is like a human in that it has many aspects and they all affect one another. Don't worry though - owning a business can be wonderful! When it's bad, it sucks but when it's good, it's so good.

Do you have the money to make it happen?

There are a few businesses that you can start for a very small investment and some that actually require no investment at all (more on those at a later date). However, a majority of businesses can take a huge chunk out of your savings account. If you're struggling already, I strongly suggest you work on becoming financially stable before investing in a business that may or may not become successful.

Some people don't consider the variety of things their business may need. Business costs can include things such as supplies, labeling, shipping, marketing and employees (if required). Employees can be involved in making/providing your product/service or working with you on things such as sales, advertising and branding. I suggest making a list of everything required to start your business, estimating the total cost and deciding whether or not you can afford it.

Do you have a plan?

Your business isn't going to create itself. It's also not going to invest in itself or market itself. More often than not, I see businesses dropping like flies because they simply can't sell their product/service. 

Some people may have great ideas but lack marketing skills. You can develop great food, makeup or games but people aren't going to magically know about it and want to buy it. 

Some people use supplies of questionable quality and lose money through repeated refunds and even lawsuits.

Some people jump into business partnerships with no legal protection and end up getting scammed or sued.

There are so many places a business can go wrong yet most of these situations can be avoided with a proper business plan which includes marketing plans, partership contracts, safety documentations, etc.

Do you think you're cut out to run a business? Are there any other things you think should be included? Let us know in the comments!