Will my home business succeed?

Work for the man or work for myself?  A question I’m sure everybody seriously considers at least once in a lifetime.  So what do I need to do to start my own home business?  And what’s the chance I can maintain it?  Let’s analyze!

Traditionally, a checklist might look like the following (source):

Step 1: Write a Business Plan
Step 2: Get Business Assistance and Training
Step 3: Choose a Business Location
Step 4: Finance Your Business
Step 5: Determine the Legal Structure of Your Business
Step 6: Register a Business Name (“Doing Business As”)
Step 7: Get a Tax Identification Number

This list is huge, extensive, just way too much.  I think the first thing to do is solidify the business concept.  What do I mean by this?  Well to start a business, I figure I’ll need:

Guts.  I can’t be scared to lose a little money here or there, and I definitely have to put my way-of-life on hold until my business is making money.  I also have to expect long working days in which I’m grinding deep into the night.

Money making idea.  I have to determine how much money goes into the business, and how much money I can expect out.  I’ll then run the financials for the worst-case scenario to make sure I can stomach it.

Partner, Friend, or Family member.  I need somebody close by that can support me.  Whether this is a business partner, spouse, family member, or friend – I just need somebody that will keep me motivated and focused.

Timeline.  I need a solid timeline to stick to.  My timeline should start at the beginning (business plan) and run all the way to the end (launch date).  I need to stick to my timeline and not stray.  If 80 hour weeks are needed, then I’ll do it.

I’ve decided that I want to move forward with my idea, so what are the chances of success?  Let’s get Down 2 the Numbers (source):

80% of new businesses fail within the first 18-months

Wow, that’s demotivating – so why bother?  Well, let me spin the statistics into a different light:  My chance of a new business failing 3x in a row is only 51% (80% x 80% x 80%), and 5x in row is only 33%.  So if I’m willing to keep on trying, then success will eventually come.

MPS Verdict = Stay positive, stay focused, and never give up

 

Posted on Aug 15, 2016 by MyPointSaver Team

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