By Bill Hoke
Since “retiring” from a 30-year career in the advertising business, I’ve been consulting with potential entrepreneurs interested in starting their own business. I give each of them this basic test that asks fundamental questions about their readiness to take that entrepreneurial step.
My experience with the hundreds of people I’ve counseled is that nobody is asking the hard questions up front. And while I don’t keep statistics on this, I’d estimate that about 5 to 7% of those who start their own business actually succeed in running a full or part-time business that meets—or exceeds— their original expectations.
This Personal Business Readiness Test© asks those hard questions intended to help you decide if the time is right for you to start your own business.
You Have:
- Your personal finances in order. This means you have a monthly operating budget for your personal/household expenses…
- Checked your credit and if not good, you have a plan to repair it.
- In-depth product knowledge, are an expert in your proposed business category.
- Time to commit to this venture. It will take up to three years and up to 10,000 hours to make this business successful. It will take over your life.
- Dedicated financial reserves to start and sustain your new business for 3-6 months.
- Support from your family. Starting a business is much like bringing a new baby into your house; it affects everyone, takes an unreasonable amount of time and attention and needs constant nurturing. Is everyone ready?
- Set high standards and will go the extra mile(s) to make every customer happy every single time. You understand your reputation is critical to your long-term success.
You are:
- Healthy and energetic. Starting a business can be stressful on your mind and body…can you physically and mentally handle the challenges you will face?
- Flexible, can turn on a dime and reinvent your business when needed.
- Curious and love to do research, find the latest trends, be an innovator and expert in your business category.
- Comfortable with money and asking people to buy what you are selling and comfortable in asking for payment. Money is not a dirty word to you. You want to sell your product or service!
- Capable of building a support network of a banker, lawyer and accountant
- Passionate about your business and you can’t wait to tell people about how your product or service benefits them. Your passion shines through.
- Resilient and can take a hit and not quit. You come back for more because you know quitters don’t start businesses.
Next Week: Specific questions on whether your chosen business is the right one for you.
Bill Hoke is a former advertising agency creative direct. He’s about 20 years into his second career of volunteering to help startup companies. You can contact him at hoke@hokeconsulting.com.