For Would Be Entrepreneurs: Is Business Ownership Right for You?



Business ownership may be the best decision a person can make – under the right conditions though. It is not necessarily “better” than holding down a regular 9- 5 job – it’s just different. Way different. For some, entrepreneurship- owning your own business is the ideal career. So is it right for you?

The exercises below are to help you ask the “hard questions,” and quickly reveal whether business ownership would be right for you. Before you start answering the questions below, take out paper and pen – or print this page. Doing so will help you review your answers afterwards. Okay, great. Let's start now.

The following 3 questions will provide some needed direction:

1. Why exactly are you researching about entrepreneurial alternatives at this time?

2. Rate your motivation to having your own business, 1 to 10 (10 being the highest)?

3. If you could pick either having the ideal job OR starting your ideal business, which would you take TODAY?

Directing your attention on these 3 questions will help you understand your core reasons. Because ultimately it's your why.

After writing down your answers to those questions, it's time to learn something-- don't worry it will be fun. There are 4 types of business ownership- there's more but let's focus on the BIG ones.

1. Consulting

2. Buying an Existing Business

3. Starting a New Business

4. Buying a Franchise

If you're thinking of the direction of CONSULTING, ask yourself:

- What markets will you serve?

*Who is you customer exactly? Describe them.

- What services will you offer?

*What is your consulting "package" look like? Is it a seminar? Coaching?

- Who will be your competition?

* Find out who else is competing for customers. What are they doing?

- How will you market and sell your services?

* How will you reach out to your customers?

- How will you manage your time among your clients?

* There's only 24 hours a day so decide how much time you will put into this.

If you're thinking of BUYING AN EXISTING BUSINESS, ask yourself:

- What type of business do you want to buy?

* Is it something that needs specialty, such as a real estate brokerage? Maybe a restaurant? Laundromat?

- How do you foresee your own role?

* Do you plan to manage the business as well? Or do you plan to hire and automate everything?

- How will you finance the purchase?

* Do you need bank loans? Do you have good credit? Do you have some savings?

- What will you expect from the seller?

* Are you good at negotiations? Will you need a business broker? A lawyer?

If you're thinking of STARTING A NEW BUSINESS, ask yourself:

- What markets will the business serve?

* Will it be local? Or will it be on internet? Maybe both? Detail the ideal customer.

- What products or services will you offer?

* Will you create your own product? Will you be a reseller of someone else’s? How would you create it?

- Who will be your competition?

* How much competition do you have in your niche? What do they offer?

- How will you market and sell your products or services?

* Will you hire salesman to do this? Internet? Yellow pages? Yelp?

- How will you finance the business?

* Do you have enough money to start a business from scratch? Have you heard of bootstrapping?

If you're thinking of BUYING A FRANCHISE, ask yourself

- What type of business do you want to be in?

* There are many categories, so which suits your liking?

- How do you foresee it going?

* There will be many things easy to understand but it's still a business, will you outsource things?

- What will you expect from the Franchisor?

* Rules, Laws, and Regulations are something you must follow, would you like that?

- How will you finance the purchase?

* How much cash can you bring in for the down payment?

Review all your answers. I know that the questions are the same but understand that the answers will be different.

After doing that, figure out the pros and cons.

What are your “Pros and Cons” for each entrepreneurial option?

1. Consulting

Pros:

Cons:

2. Buying an Existing Business

Pros:

Cons:

3. Starting a New Business

Pros:

Cons:

4. Buying a Franchise

Pros:

Cons:

Reexamining this list of “Pros and Cons” for each of the 5 business ownership options, which choice looks, sounds, and feels suitable for you?

Most people think they already know the kind of business they'll be successful in BUT after they consider their own qualifications and preferences they realize that would be better off doing something different.

Look at your abilities in the following:

- Marketing and sales

- Accounting and bookkeeping

- Operations and Administration

- Human Resources

- Product creation

For each category above, answer these questions (I know... too many questions... but it helps):

- What work will the business require to become and remain successful?

- What education, training or experience do you need to produce desired results?

- Are you personally passionate about, and willing to do, the required tasks?

- If you do not plan to lead specific parts of the business, who will do them, and how will that affect your business, including your bottom line?

Every business has its challenges, but some of the biggest challenges of owning a business often come from within you.

More questions, you ask? Yes. Answer these now.

- Are you certain about becoming an entrepreneur?

- What are the major challenges you know you will face?

- What are your biggest concerns?

- What doubts need to be dealt with before following through?

Woo... now you got through all those questions. You have to decide. Decide if business ownership is right for you?

Good luck.