There’s nothing more exhilarating and fulfilling than starting your own business! If you are lucky enough to have found work that you love doing every day, then why not become your own boss? One of the CGS Team’s favorite books is #GirlBoss by Sophia Amoruso. The Nasty Gal founder explains how she started as a grungy teen and become the owner of a multimillion dollar fashion company.
We want you to channel your inner #girlboss! The CGS Team is sharing 6 signs that indicate you may be ready to start your own business. We are not necessarily saying you need to quit your job and dive in, but at least get a formal business in place; the rest will happen naturally!
Sign #1: You’ve Found Something You Love
Whether it’s painting, writing, blogging, knitting, designing clothes, or a great idea, if you’ve found something you love to do and you are passionate about it, then ask yourself if you can make money from it. Do people follow your blog? Do you get compliments on the clothes you designed?
If you have a great idea, do you think there is a market for the product? You must be passionate about what you’re doing, especially if you plan to make a business out of it. Make sure you are not confusing passion with frustration from your current work environment. Ask yourself if you could do this every day, or if you are willing to talk about your idea every day.
Sign #2: You Understand the Risks
Even if you aren’t quitting your day job before starting your business venture, there are risks involved. You could lose your investment, run into legal problems, lose your day job, or take some time to make a profit. When you understand all of the risks involved with starting your own business, you can properly plan for these things.
Hopefully you will never be faced with such things, but it is always a possibility when you are running your own business. Do some research on business successes and failures, talk to entrepreneurs in your area, and consult professionals. By becoming knowledgeable about as many situations as you can, you can plan accordingly.
Sign #3: You’re Knowledgeable About the Next Steps
Simply creating a website and coming up with a business name does not mean you have a formal business in place. Most states require business owners to file specific documents with the secretary of state. Before you can do that, you have to have a business structure in place.
Will your business be a sole proprietorship? Will it be a corporation? Understanding which structure is best for your situation is key to avoiding potential problems in the future. Check out the post The Rundown on Business Entities for an overview of each of the business structures available.
Sign #4: You’re Creative, Organized, and Willing to Learn
When it comes to starting and running your own business, you have to have certain characteristics to survive. Creativity, organization and a willingness to learn are key characteristics to being a successful business owner. You must be able to alter your product or idea to meet the current market need. This takes a creative mindset.
Organization is also extremely important. Without proper organization, you can end up paying for it come tax time. There is always something to learn. When it comes to what your business is based on, becoming as knowledgeable as possible is a necessity. You need to know the ins and outs of your product, as well as similar market products. Other characteristics that are key in running a business are leadership, emotion control, listening skills, and risk taking.
Sign #5: You Have Some Cash Saved Up
Starting a business is not free. Filing the formal documentation with the secretary of state can cost up to $350, depending on the state. If you need to set up a website that accepts payments, you need to purchase a domain name, host, and merchant provider. While there are affordable alternatives to these things, they are by no means free.
Having some cash saved up to help you take care of the startup costs associated with running a business is mandatory. You don’t want to start the process and then have to put things on hold until your next paycheck comes in. You also don’t want to resort to using credit cards. Set a goal to save a certain amount for starting your business. This amount can be used as capital to fund your business and can be a tax write off!
Sign #6: You Can Face the Fear of Failure or Success
The reality is that we don’t know what the future holds. You could be the next Sophia Amoruso running a multimillion-dollar company, or your business could fail. Since we don’t know what will happen and failure or success are real possibilities, you have to be able to face the fear of not knowing or the fear of either situation.
If you can’t bear to lose your investment, or the thought of failure is too crippling, you may not be ready. Part of starting a business is being able to take that risk. The CGS Team believes that if you are passionate about your business, you are able to accept change, and you are truly willing to put in the work, then success is much more likely than failure!
Do all of the signs indicated above apply to you? If so, then what’s stopping you?! Check out the article Finance 101: Starting a Business to start learning what your next steps are. Get ready to learn, work your tail off, and become a business owner! Do you already have a business? Are you considering starting a business? What are you feeling? How did you know you were ready? Share your thoughts with us by leaving a comment below! You never know what you could learn or who you are helping!