Owning a startup business requires a certain level of daring. With the sobering statistic that up to half of all startup businesses fail, new business owners need to be prepared to meet the challenges of the marketplace. When you are creating your road map to becoming your own boss, you will need advice from an experienced business owner. Entrepreneur Susan Kusek explains the steps you will need to take before becoming a full-time business owner.
1. Be Ready to Be Your Own Boss
You need true self-motivation to be a business owner. You won’t have days where you can kick back, relax your pace, and let others take up your slack. If you can’t motivate yourself, starting a new business is not the right source of employment for you.
Hating your job is not the best reason to start a new business. Your energies may be better used by finding a different job in the same field, or by switching fields altogether. Especially if you want to quit your job because you are working too hard, feel stressed, and you are not being paid enough, it is better to stay with someone else’s company. All three of these conditions are common for a new business owner.
2. Don’t Quit Your Day Job
This may seem like counterintuitive advice, but it is risky to go out on your own while you do not have the safety net of your day job. Health insurance, benefits, and steady work are not guaranteed when you start a new business. It is better to stay employed while your business is established. When you go full-time, you will be able to cover your own insurance and benefits, and your business will have already been established as a good money-maker.
Success does not come from huge steps like suddenly quitting your job and then expecting your new business to support you. It is much better to step in gradually, researching every step.
3. Work on Your Niche
Every new business should consider the concept of niche marketing. No one business can do everything. Businesses need to specify which products and services they will offer, and they need to have a narrow target market in mind when beginning their companies. Niche marketing can help companies define their business and set them up for success. If you are looking for a market to target, you should examine your local market and find an unmet need.
For example, you may want to start a jewelry store. Think about which segment of the market you want to target. Are you interested in bridal couples, older adults, or younger millennials? Your answers will determine how you target your market and will lead to the types of merchandise you stock.
4. Have a Solid Business Plan
Having a strong business plan is a must. When you go to banks for financing, they will need to see a complete analysis of your new business and your budget. Firm business plans are also necessary for programs like the Small Business Administration, which may be able to give your business assistance and funding. Make sure that you have a complete picture of your potential customers, your supply chain, your operations, and your costs.
5. Network for Success
Networking is a vital way to support your new business. Get to know the other businesses in your community. The local Chambers of Commerce can be great resources in this area. Keep in contact with people you met through your day job. These people can be an important resource for you in years to come. Networking can happen in person or online.
5 Tips for Startup Success
With these 5 tips from Susan Kusek, startup business owners will be able to achieve greater success. The most important of these is knowing whether you are truly ready to be your own boss. Not everyone is cut out to be an entrepreneur. Keep your financial risk low until you have determined that you are able to go all in.
