Do you have what it takes to start your own business? Many people believe it is easier than it seems, when in reality starting your own business is extremely tough. According to the Global Entrepreneurship Monitor, more than 582 million people in the world are starting or running their own business. This includes people who have a low risk tolerance, scarcity mindset, or an unclear business plan. As a result, only 40% of startups actually turn a profit, and by the 10th year, 70% of startups are no longer in business.
Now maybe you’ve got a revolutionary new idea that’ll change the world, or you’re simply fed up with your crappy 9-5 job and you’d rather be an entrepreneur. But starting a business and succeeding in business are two very different things. If you don’t think about what could go wrong, you are very likely to fail – just like what happened to me when I was young.
When Young Ambition Turns Into Crippling Debt
When I was a teenager, I used to work in a grocery store as a grocery bagger, getting paid minimum wage. I realized after a few weeks, that even if I worked harder, I wouldn’t get paid more. On top of that, my manager was always yelling at me to do more work, even though I was the fastest worker there. One day, I got frustrated with it all and decided to quit and pursue my dream of becoming an entrepreneur.
Like most entrepreneurs, I believed it would be easy and that I would be sipping honey green tea by my swimming pool in the backyard of my private mansion within the next few years.
I was wrong.
Instead, what happened was that in my desperation to become rich quickly, I started and failed at 13 businesses, incurred $100K in credit card debt, and learned a valuable lesson: Desperation leads to stupid decisions.
So before you quit your job or decide to go all out and pursue your dream of becoming the next Steve Jobs, make sure you read and understand these 4 signs that tell you when you’re ready to start your own business:
Sign 1: You Have a High Income Skill
You see, when I was young I believed rich people were rich because they owned businesses. So I started a bunch of business endeavors, ranging from lawn mowing to computer repair. Many years later, I would come to realize that rich people weren’t rich because they owned businesses – they were rich because they had high-income skills.
High Income Skills are skills that allow you to add value to the marketplace. You trade a certain skill that is high in demand, in exchange for money. But unlike a soul crushing job that takes away your time, energy and freedom, a high income skill is something you can do from almost anywhere in the world.
Once I discovered the High Income Skill of copywriting, which was taught to me by my mentor Alan, I realized I could make a handsome income without the need to work at a job ever again. I didn’t have to deal with my boss or manager breathing down my neck, or grumpy customers yelling at me, or apologizing and getting a pink slip because I arrived to work late. I had a valuable skill that other people were willing to pay me a lot of money for, because of the value that I could bring to the table.
High Income Skills are a Gateway To Helping You Start Your Own Business
I would have clients come to me and ask me to help them write their sales material, such as sales pages and emails. Because I was a good writer, I could take what they wanted to say and write it in a very convincing way to get more customers to buy their products. And as they realized that my work helped them get more sales, they began recommending me to their friends and acquaintances. Suddenly, the skill of copywriting became a full time business within a month. That is why I recommend you to discover a High Income Skill first, before you start your own business.
Once I discovered copywriting, I realized that all of my previous business failures were because I lacked experience. Had I discovered my High Income Skill first, it would have led me to realize that I could turn copywriting into a full time income. I wouldn’t have had to ‘risk it for the biscuit’ or try silly business ideas that I was not good at.
If you want to start your own business, first ask yourself what product or service you can offer to the marketplace. If you do not have a solid idea of how you can use it to add value to others, find a High Income Skill first. There is no guarantee that your invention will become popular, and make you the billionaire business tycoon that you envision in your head. But skills such as copywriting, will always be in demand because of the value you can provide to other people.
Sign 2: You Know Your Niche Better Than Anyone
If you want to start your own business, you need to know your industry better than anyone else. Thinking that your idea will spontaneously succeed just because you start a business, will only cost you money, time and energy – like it did to me many years ago.
Before you start your own business, get clear on what niche you are going into. What kind of products are your customers looking for? What’s missing from that industry? How is your product different from your competitors? How saturated is that particular niche? These are all questions that have to do with how your business will stand up against everyone else. If you don’t even know the pros and cons of your niche, there is no way you are ready to start your own business.
That means doing research until you know your niche inside and out. And I don’t mean Googling what you think customers will want, I mean getting actual data from real, live people. In business, many people make the mistake of assuming they know what the marketplace wants. In reality, their reason for buying a certain product may have nothing to do with what you thought.
For example, let’s say you want to sell fitness and workout equipment, and your niche is 20-30 year old men and women. And let’s say the reason you think they’re buying fitness equipment, is because they want to build a nice looking body. So you get your marketing team together, run advertisements with big bold headlines that say STAY FIT AND BUILD THE LEAN SCULPTED BODY YOU WANT, only to realize no one is buying your products.
If You Start Your Own Business, Never Assume Anything
Again referring to the example of selling workout equipment: The problem is that you are assuming your customers are looking for a lean and sculpted body. In reality, your customers may want something entirely different. They may be buying workout equipment because it’s more convenient for them to exercise at home rather than go to the gym. Or they’re out of shape and afraid of being judged by other gym-goers, so they simply feel more comfortable working out at home.
Unless you know the actual reason they’re buying, and understand the niche that you are catering to, you will not be able to influence them to buy your products.
This is the story of what actually happened to my friend who went into the industry of selling fitness machines. He made the mistake of assuming he knew what the marketplace wanted, and paid the price for it. Once he started doing customer surveys and finding out from the customer themselves why they buy fitness equipment, he was able to retarget his niche and cater to those specific people.
If you want to start your own business, don’t make the mistake of assuming anything. Even when you are successful and running a team, always make sure you find out the facts behind how things work. Statistics, surveys, and hard data will always be more reliable than gossip or other people’s opinions.Assumption is the mother of all f***ups. - Travis Dane Click To Tweet
Sign 3: You Have Sufficient Capital
Most businesses fail in the first 5 years because of a lack of capital. Having capital allows you to ‘weather the storm’ during bad times, giving you more opportunities and chances to succeed.
For example, suppose you open a business selling fruit to consumers. The problem is that you did it during the Winter season, when most people are out of the country and on vacation. As a result, sales are very low and you’re losing money every month. You’ve even done the calculations, and foresee that if things don’t turn around soon, you’ll be out of business within 3 months.
However, imagine the scenario where you went into business with 6 months worth of capital. Now, you could prolong the lifespan of your business from 3 months, to 6 months. Having sufficient capital allows you to buy time during the downs of a business cycle. And in the case with this example, 6 months later would be Summertime – a much more favorable time for customers to want fruit.
Seeking Capital To Start Your Own Business
Getting enough capital to sustain your business can be difficult. That is why the first sign that you are ready to start your own business, is by having a High Income Skill. Your High Income Skill can provide you with the capital needed to sustain your business ventures.
In the case where your business fails, you still have your High Income Skill to fall back on. Instead of taking the risk of pouring your entire life savings into your business, if your business fails you can simply use your skills to generate income, and start over again. Having a High Income Skill that provides you with the capital needed to fund your business, will allow you many more opportunities to succeed.
Think of capital as a safety net. The more capital you have, the more chances you have to fail. But once you run out of capital, your dreams of becoming an entrepreneur dry up with it. That’s why you need to make sure you’re willing to do whatever it takes, to become successful.
Sign 4: You’re Committed To Doing Whatever It Takes
If you are truly committed to doing whatever it takes to succeed, you might have what it takes to start your own business. You see, most entrepreneurs who decide to start their own business tend to overestimate their own abilities. They think they have what it takes to succeed in business, until they actually do it.
People also often mistakenly assume that they need less help than they actually do.
It’s like suddenly running a marathon when you haven’t jogged in the last 2 two years. You’re going to experience pain, shortness of breath, doubt, and fear. You might get lost and not know where you’re going. Attacked by your competitors, who are willing to do whatever it takes to win – even if it means bringing you down. Or, you might simply give up before you even make it to the halfway point. And this is often the case, when they don’t see any successes. They become discouraged, and give up too quickly.
Starting your own business is not for those who are not committed. If you are not committed to doing whatever it takes to succeed, you are what I call a wannabe-preneur. Wannabe-preneurs are people who talk big, who make big claims about how they’re going to become a millionaire and achieve financial freedom within 3 years. But when it comes to taking action, they do absolutely nothing. They’ll continue with their bad habits, playing video games or wasting their weekends partying with friends. They’re not committed to making their business a success, or willing to make short term sacrifices for long term gains. In plain simple terms, it means they are not ready.
The Two Aspects To Starting A Business: The Business, And You
There are two aspects to starting a business. The first one is the more commonly known side of things – such as finding customers, producing a desirable product, running a team, finding funding, managing expenses and all that stuff. Everything that has to do with the ‘business side’ of things falls into this category.
The other aspect, is what I call the ‘personal side’. This is the other part of your personality, where your inner demons lie. It’s the part of you that doesn’t believe you’ll succeed. That thinks it’s much safer to take a monthly paycheck, rather than go hungry or lose your house because of a failed business venture. This is the side that is out to sabotage you, because you haven’t paid attention to yourself enough. The worst problem of all, is that this side of you is going to be with you 24/7.
If you do not understand yourself, you will struggle when it comes to starting your own business. For example, let’s say that an employee suddenly quits during a critical time when your business is still growing, and you’re now left to do all the tasks by yourself. Could you handle having extra things thrown onto your already full plate? Can you prioritize your time to make sure everything is done, while also ensuring you don’t burn out? Can you endure extreme stress, during those difficult times?
A Business Is Only As Successful As The Person Running It
When it comes to business, people focus on the CEO and who is running it more than the actual business itself. They know that if the person in charge is inexperienced, they will most likely not have the aptitude to succeed.
If you do not handle failure very well, work on controlling your own emotional state first before you start your own business. If you are prone to anger, you will need to learn how to maintain your temper. Those who do the work of starting a business without also taking time to work on themselves, will find that they will be the cause of their own downfall. In life, there are always going to be ups and downs, and how well you handle those highs and lows will determine how far you will get with your own business.
Starting a business requires commitment, dedication, and an unbreakable will. Those who are able to endure failure after failure and still have the motivation to keep going, will inevitably be the ones to succeed with their business.Most people overestimate what they can do in a year and they underestimate what they can do in two or three decades. - Tony Robbins Click To Tweet
Discover Your High Income Skill Today
Starting a business can be risky. For entrepreneurs who aren’t ready to handle the hardship and struggles, developing a High Income Skill first is a much safer alternative that provides you with a safety net when you start your own business.
A High Income Skill allows you to generate at least $10,000 or more a month, and pays you based on the value you deliver to the marketplace, instead of what your boss or manager thinks. And the better you become at that skill, the more value you can produce, and the more people are willing to pay you.
If you want to discover what High Income Skill you were destined for, click here to take the quiz.