Start Your Own Business: Avoid Failure With These 6 Tips

Start Your Own Business

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So you want to start your own business? The business world is a competitive place and you may be wondering what it takes to get your business off the ground and out into the market. There are many different reasons why people would want to start their own business, such as:

– The desire for more independence in their career choices

– To work with people they like and trust

– To have control over their time and work environment

Many entrepreneurs fail because they do not take these things into consideration before diving head first into business ownership. Let’s discuss some of the risks and tactics you should know about before you start your own business or product!

Why are you looking to start your own business or product?

Before you start your own business you need to ask one simple question, do you just need to take a holiday? It may sound strange but sometimes we are simply tired or burnt out and need to take a break. To know whether or not you fall into this category ask yourself, are you:

  1. Overworked?
  2. Under-utilised? 
  3. Unappreciated? 
  4. Underpaid?

If you answered yes to any of these, take a holiday or ask for a pay rise. This is a far better way to increase your income, worth or enjoyment and far less riskier than quitting your job and going into business. Trust me, i’ve even done it when I launched my first business.

If you answered no, let’s move on!

What is the risk of starting your own business?

There are many different business models out there, each with their own risks. Some business models may put you more at risk than others so it’s important that you understand the risks of each before you jump in feet first and start your own business. The common risks are:

  • Running out of money
  • No product market fit
  • Inexperience
  • Burn out

This guide will help you avoid most of these issues but be sure to take the time to understand your future goals and mitigate the down side as much as possible.

Where do business ideas usually come from?

For the most part, business ideas come from three places:

  • What are you good at
  • What are you passionate about
  • What you can make money from

If you can combine all three, this is the best recipe for success.

The Entrepreneur’s Journey

Let’s face it, most businesses fail. On social media, we see the ultra successful or people that pretend to be. This can be a misleading vision because business isn’t that easy. An overnight success usually comes after years of failures, learning and persistence. The journey has four stages and as you progress it gets harder to progress to the next level.

Having A Job or Being Employed

This is the safest place to be. If you’re risk averse you might be best staying here to maintain a level of security you have become accustomed to. There’s nothing wrong with this, particularly if you have mouths to feed. A side hustle might be the best path to start your own business or product.

Self Employed or Side Hustle

You’ve made the jump. Either part time or maybe even gone all in. You will quickly realise that all tasks fall on you when you start your own business. The marketing, product development, sales, operations and complaints when something goes wrong. You get all the stress and none of the benefits initially. Unfortunately, not many people ever get out of this category.

But, if you have taken the time to gather the data and build the right product you should soon find that you need to hire others to help.

Side hustlers beware, good products take time to build. Don’t listen to those product gurus that say you can launch a successful business in a weekend.

Business Owner

You have a team of people or employees that help you achieve your business objectives. You can start to look at outsourcing the tasks you’re not good at or the ones you don’t like to do.

You will still need to drive strategy and you’re now responsible for the livelihoods of others. If you’re lucky you might even be able to take a holiday.

Entrepreneur

By this stage your risk profile and income should have increased. You should now have managers and leaders that can drive your business without you being there.

If you were to take a week off, money still rolls in and you don’t come back to work with problems to solve.

Conduct A SWOT Analysis

Not for the business, but for yourself. Take time to understand what you are good at and what your key tasks will be. When you find your weaknesses or threats, strive to outsource or hire someone as soon as possible. Simply put, amplify your strengths and cover your weaknesses.

Who shouldn’t go into business

Don’t go into business if you’re not willing to fail. Don’t expect overnight success when you start your own business because it doesn’t happen that way for most people.

A simple question to ask yourself would be, “if I don’t give this a go, will I regret it?”

We only miss the shots we don’t take. Understand your personality, your product and your risk profile before making the decision to start your own business but like any business owner will tell you, taking action is the only way to succeed.

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