Starting a business can be a rewarding experience. But it might not be the right choice for everyone. It’s important to think about whether the opportunities and challenges of entrepreneurship fit your personality.
Start by trying our online entrepreneurial self-assessment to find out if entrepreneurship is right for you.
Next, ask yourself these three key questions:
1. Is your idea original?
If you have an innovative idea, then you might want to explore whether it needs intellectual property protection to prevent it from being copied by others.
If your product or service isn’t original, ask yourself how you’re going to stand out in the market.
2. How will you make money?
It’s important to think about your target market and sources of revenue. Consider these four questions:
Who are your target customers?
How much are they willing to pay?
How will your product or service be delivered to market?
- Will you develop, produce, package, market and distribute your product or service yourself or in partnership with another business?
3. What resources do you need?
Next, think about what resources you’ll need. You should figure out how many employees to hire, your timeline to market launch, and one-time and recurrent costs. Be sure to include overhead expenses, such as rent, office supplies and insurance.
Then, determine your projected income for your first year. Base this estimate on the size of your market, industry trends and your expected market share.