Entrepreneurship brings a lot of freedom in addition to responsibility: You establish your own hours, rates as well as produce the kinds of services or products which you’re passionate about. It’s also probable that you’ll have staff who will look up to you and that you’ll get a shot at making significant profit.
Starting your own business is not a decision to take lightly. While it’s great to be your own boss with the freedom to set your own schedule, this is only part of the equation. It takes a lot more than merely a dream to be a successful entrepreneur.
However, for all these advantages, there are also certain risks:
- Businesses failure,
- Damaged relationships, as well as
So before you commit to the life of an entrepreneur, what questions should you be asking yourself?
Can I Be Sufficiently Self-Disciplined?
Some people really do need to work for others in order to stay on task. While you may feel that you are able to work without guidance, some have found that they can’t get off the couch and in front of the laptop when left to their own devices. You need to decide if you are able to work hard without anyone lighting that fire for you.
How Well Do I Organise And Plan?
Most new companies close their doors within the first few years of operation owing to poor planning. Inexperienced company owners often make the critical error of overlooking the value of forecasting their cash flow.
The lack of proper planning may lead to cash shortages in the first few months or even years of operation. Also, you may run into situations where your suppliers need payment however your cash reserves are inadequate as you are still anticipating payments from credit sales.
Even with a profitable product/service, organisations can still run into periods of negative cash balances that – in most cases – result in the collapse of the company. A simple way to dodge periods of cash shortages is to go through the process of writing a business plan.