Start your own business?

In: Business Basics

7 Oct 2009

Before thinking of leaving your job and starting your own business. Here are 4 questions asked and answered perfectly by Guy Kawasaki:

Question: How do you know when it is time to quit your day job?lightbulb

Answer: There is no perfect formula to ensure that you are 100% ready to quit your job and start a business—if I could figure it out, I would be rich! But there are a few critical things you need to take into consideration in making the decision. First, you have to have a really clear, realistic picture of your financial life and understand the specific risks you are willing to take. For some people, this is a defined pile of cash to burn through, for others it is a period of time you set aside to see if your business will work. Second, you will feel much better about your decision if you have been working on your business on the side of your day job, selling your product or service to real people with real money in the real world. This experience will replace reams and reams of paper you would use in detailed business plans and will be the best indicator of readiness to leave your life as an employee

Question: But isn’t it crazy to start a business in this economy?

Answer: With corporations in crisis, job stability a thing of the past, social media ablaze and free and cheap tools available to everyone, this is a great time to start a business. Depending on your financial situation and how far along you are with your business idea, if you find a need in the market that you can serve well, this is an excellent time to run ahead of the pack. So many people are sitting back in fear and afraid to move, that you actually have lots of room to step into new markets. Let me phrase it another way. In the unfortunate case that you get laid off, do you think you would be more happy having started a business on the side or having spent your energy desperately clinging to your job?

Question: How do you decide which business to start?

Answer: Business ideas are a dime a dozen. From my perspective, which is firmly rooted in the idea that the purpose of a business is to allow you to live the kind of life that makes you happy, healthy, wise, and wealthy—or at least well-fed, a good business idea has four components. First, it is rooted in something you are passionate about and which energizes you. Entrepreneurship is too darn hard to manufacture enthusiasm. Second, you have the skill and competence to make it happen—or at least a really great contact list of smart and enthusiastic friends to help you figure it out. Third, you need to do enough business planning to know whom you are trying to serve, and how you are going to make money. Finally, you want a business model that you have the resources to support and that delivers the life you want to live.

Question: What is the very first step that I should take?

Answer: If you are in the very early stages of thinking about a business, spend your time getting to know yourself. One of the best things I learned from author Jim Collins is to study yourself as if you were a scientist observing a bug. Pay very close attention to the things that either make you feel great or feel crappy. Note the kind of environment, work, people, topics, industries, schedule, and activities that make you thrive. When you start your business with this awareness, you will feel natural energy and clarity which will make all the next steps of the process like choosing a business idea, figuring out the money, planning your business, identifying your customers, and creating a marketing process a lot easier.

Well what do you think? We will add more Q & A posts in the coming days and weeks. Talk about Q & A, we are busing testing our very own Q & A section. Will keep you posted on the development.

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2 Responses to Start your own business?

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kadi menaouer

October 10th, 2009 at 22:52

cherche emploi

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MR. AYINTETE DOTUN.

October 26th, 2009 at 16:05

In this part of the world where people struggle daily to make ends meet, and where capital fomation is at lower elb and where per capital income of 80% of nigerian is bellow 50$ per month,how best can one effectively embark on business formation considering the above senario and enviromental factors.could l have the professional inputs on how l can overcome these challenges and other useful tips on BUSINESS FORMATION AND OWNERSHIP.

Thanks in this regard,
Yours,
AYINTETE DOTUN.

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