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