We have all thought about the dream of entrepreneurship and leaving the safety of our corporate job to start a business, but how do you know when it really might be time to take the leap into business ownership? In my work with franchising, I have the opportunity to interact with a significant number of new franchisees and have put together a list of key indicators to look through when considering entrepreneurship. In today’s current job market with many segments shrinking (Banking, Manufacturing, etc) and a diminishing number of high income job opportunities, more professionals have considered starting a business than ever before.
1. What Indicators In Someone’s Personality And Character Might Lend Themselves To Business Ownership?
Sales and marketing are inherent in any business model, typically people who have an ability to market and sell make good business owners. Even if it’s pizza, you will be marketing something, if you enjoy marketing and sales, business ownership might be more of a reality.
2. When Do You Know You Are In A Position To Financially Consider Business Ownership Vs. Working For Someone Else?
A business start-up requires hard costs associated with the opening, equipment, furniture, fixtures, signage and inventory. These costs should be totaled and you need to then consider your living expenses and the costs of operating the business without any cash from the business for a minimum of six months, possibly twelve months. You need to have working capital to support the business until it is profitable, which sometimes can take six months or longer.
3. How Can I Tell If I Am Ready For Business Ownership Or Just Bored With My Job?
I would recommend starting with intensive research, planning and due diligence. Don’t make emotional decisions related to business, start with your goals, build a plan and do the market research needed to make a good business decision. The resources are out there for you to bounce ideas off people and get advice from others who have been in business. A good start would be SCORE (https://www.score.org)
4. Why Would Someone Leave The Safety Of Their Job For The Risk Of Entrepreneurship?
One saying that resonated with me when I left my corporate job and started my own business was that I felt like the floor went out from under me, but the ceiling opened up above me. The regular paycheck was gone, but the world was open to opportunity. Business ownership can amazingly empowering, fun, emotional and exciting, many times it’s just like tearing off a band aid and getting the courage to make the move.
5. What Formats Of Business Ownership Are There?
There are several ways to approach a new business, the first would be to consider a new start up business model, where you create your own idea, business plan, concept and vision for the business. This is the highest risk alternative, but certainly allows for the most freedom and upside. The second option would be to consider buying an existing business, the benefit is existing cash flow, the risk is you are buying someone else’s problems. The third option would be to consider franchises or licenses which offer support, structure and less risk.
6. What Franchises Might Be Options For A New Entrepreneur?
Franchising is a funny segment in the small business world that has been designed to offer entrepreneurship with a safety net. Good franchisors offer training, support, branding and a higher success rate for a new business owner. Not all franchises are created equal though and it requires careful due diligence to find the right fit, luckily there are literally thousands of franchises to choose from (www.FranchiseConduit.com)
Business ownership isn’t for everyone, but if I am proof of anything, it’s that entrepreneurship can be an option for almost anyone. Take time to consider your options and plan for success, many times, the right opportunity makes taking the leap into entrepreneurship easier to grasp and a tangible decision.
Franchise Marketing Systems