We live in a world where starting your own businessng s increasingly seen as an option, indeed even a preferred choice. For some people the entrepreneurial spirit is so ingrained they wouldn’t be happy unless they were putting their business ideas into being. For other people, starting a business is a way to avoid a lengthy commute to work or not having to work for someone else. Some people need to stay at home to be with their children or to care for an elderly or disabled family member. Some people have reached an age where a conventional job is no longer an option. Some folks just simply like to be location independent and spend time in whatever country currently holds their interest.
Exciting times! But, if you make the wrong choices then financial challenges and disappointments can be the order of the day. I’ve had contact with literally hundreds of people who’ve wanted to start a business but relatively few launch a business and actually make money from it. In fact statistics on the success rate for start-up business make sobering reading. In the USA, for example, Bureau of Labour Statistics data show that 49 % of businesses survive 5 years+; 34 % survive 10 years+ ; and 26 % survive 15 years+.
BUT THERE IS A SOLUTION ! – EVALUATE YOUR BUSINESS IDEAS !
Well, start by taking a close look at YOU – are you the right person to start and run this business ?
Is there sufficient DEMAND for your products or services ?
Do your products / services satisfy a NEED in the market place ? Do they remove someone’s problems ?
What is happening in the macro-environment – what are the opportunities and threats ? how will these impact your business idea ?
What are the barriers to entry in your market place ? what is the extent of rivalry between competing firms ? how will competitors react if you enter the market ?
What are financial costs – of start-up, of running the business on a day to day basis ?
What prices will you be able to charge ? how many of your products or services will you be able to sell ?
I’ve produced a free report on all of these so if you want to read more just look over to the right hand column and sign up for it in the box at the top of the column.