For most people it is a lifelong dream to be boss of their own company. Some just can not stand looking at their boss anymore and yearn for the day when they will get to sit in the ?big chair?. Others are free spirited creative beings, who simply are always looking for a new thing to direct their energy at. Others again are motivated not so much by the prospect of money, as by being able to live comfortably doing something they love and exploring their hobby and passions.
Whatever the motivation for starting your own business, there is always place for some words of caution. Many very skilled and talented people have failed, even if they had the greatest concepts and ideas. Maybe they didn't protect themselves from copycats or they failed to understand the need for a serious cash flow plan many fail simply because the have forgotten fundamental rules of market research or failed to have a marketing strategy.
Do too many of these mistakes and before long, there is no more equity in the house to be borrowed from. But stick with it, make good plans and before you know it, you have made a difference in this world. This is the age of the ?new rich?, where everybody has a chance to make it big regardless of age, sex or country of birth. But to get there, there are certain pitfalls that must be avoided. Below you will find the top 5 dont's of starting your own businesses.
1)Don't leave your existing job until you are ready.
This is a very common mistake once the initial euphoria sets in. Everyone who sees their plan begin to grow into something tangible and physical, will feel the need to quit their day job and immerse themselves in their business, but it is actually better to wait until everything is ready to launch before leaving.
2)In it for the money doing - something you do not enjoy.
There has to be passion for something, everything, to succeed. While some niches may have a lot of potential for high earnings, if you truly despise that work then there is no way, you are ever going to be successful Not to mention you will be miserable doing something you do not enjoy. You must be positive and passionate about your new business venture.
3)Compete under the radar with your employer.
This is just dishonest and bad practice. It is perfectly okay to compete with your former employer out in the open, but doing the same thing will still employed is very bad advice and may constitute fraudulent behaviour which could land you in serious trouble.
4)Competing in a price elastic niche.
If you choose a niche that is largely determined by price, then you are setting yourself up for a world of trouble. There will always be someone who can underbid you and in the end, such a field will get saturated fast once someone finds another method of cutting costs.
5)Don't be complacent.
It is good to be confident and think you can figure it all out on your own, but being able to step back and carefully analyse the situation is valuable skill. Make friends and mentors and don't be afraid to ask for advice. Devise a marketing plan which is cost effective and realistic. Take advantage of business printing services to create effective flyers and leaflets. Go out and inform people of your product or service otherwise how will they know you even exist?
You may be, like Hamlet, placed on a threshold of decision on whether to start out from scratch with your own business or buy a franchise. The battle between starting your own business versus buying a franchise truly depends on the person who is to make a decision. If you are on the chasm between being a pioneer business person or a thriving franchisee of an established business, you must be able to consider a lot of factors before you make the final decision. Ultimately, all the factors are affected by your current need and situation.
The first question to ask yourself is this: How much are you willing to risk? In actuality, having your own pioneer business holds a 50/50 chance of succeeding. And if you have enough money to spare and risk losing out at the beginning, you might as well try your hand in doing your one-man show. However, if you are already after profit, franchising after a pre-established business will most probably give you more security in terms of return of investment. More often than not, franchising businesses are already recognized and widespread.
You will really be able to get a fair return for your capital if you link yourself with a fairly successful franchise business. If ever a franchise business fails to give you return for your capital instantly, you will know that the blow is somehow cushioned because you are not alone bearing the burdens of the business. Unlike in a business you will build on your own, you will not experience the full blast of failures should they come. And this will keep you motivated enough to plug away until you become one excellent franchisee. You can still manage to stand out among branches of the franchise business, although not beyond the bounds set by the ultimate business owner.
While you are safer in initial income returns at the franchise business than with a pioneered business, there is nothing that can be compared to the sense of fulfillment you can have in having your own business and not patterning yourself with an idea somebody else thought of.
Furthermore, aside from enabling you to keep your creative juices flowing in a business you pioneered, having your own business will not limit you or confine you to a certain standard which most franchises have. You will get to retain your business individuality and whether it rises up as a household name for consumers or not, you manage to establish yourself at par with the bosses and not a bit below the organizational chart. You will not have to make too many adjustments in a business you own because it is yours. Other people may have to adjust with your policies should you decide to employ people and start setting standards early in the business.
It ultimately boils down to your business priorities. The decision on whether to start your own business or buy a franchise both has its advantages and disadvantages. Your particular situation, strengths and weaknesses, together with outside forces, will help you determine which is truly best for you.
Both Bella Harris & Tristan Andrews are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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