Starting a business is always challenging, regardless of the state of the economy. But when you factor in a pandemic and a recession, it almost feels like pushing a giant boulder up a steep hill. Regardless of how your 2020 went, there are plenty of signs that point to you being ready to start all over again. Here are the key signs in your financial life that can help you decide if you’re ready to start a business this 2021.
You’re passionate about your business idea
Passion and zeal may not be the only ingredients needed for a successful venture, but they are a great starting point. If you’re starting a new business, make sure it’s one that makes you come alive with excitement and passion, rather than frustration or dread. Make sure that you believe in the idea or the invention. If you don’t, potential investors and customers won’t believe in it too.
You come across a promising opportunity
It’s also possible to come across a business opportunity that was presented to you, as opposed to something that you came up with by yourself. Before you commit, do your due diligence on the opportunity by making sure it’s not a scam and that everything is above board. One example of this is a property management business opportunity, which can help you work from the comforts of your home through state-of-the-art technology and with the support of a reputable franchising company that can train and helps you every step of the way.
You have enough cash available
While businesses can succeed even with very little capital, one of the widely accepted facts of businesses is that success takes time. Make sure that you have enough cash to live on while you wait for your business to generate income, or that you have another income stream to help support you while your new business grows.
You’re not in the middle of a personal crisis or major life changes
It’s easy for people to make rash decisions when they’re in the middle of a major life change or while going through a personal crisis or tragedy. In other words, don’t decide to launch a business when you’re emotional or going through hardships. Give yourself some time to recover or gain a semblance of normalcy before you commit to something as demanding as launching your own company.
You have a service or a product that has a gap in the market
Your idea may be great, but is there a gap in the market for it? Will it have room to occupy in the industry? Do consumers want or need your service or product? A great business idea is one that hits the soft spot between something you love and what consumers are willing to spend money for. Before you consider leaving your current day job, make sure that there’s a market for your service or product first.
You know the people in your team
And by “team,” I mean the people in your corner—people who will invest not just their financial resources, but also their support. It’s crucial to find not just investors in the financial sense, but also mentors, potential partners, and other crucial players, to join your team. Unless you decide to be a “solopreneur,” in which case you can start any time.
You have a solid financial and business plan
While it’s not necessary to know 100 percent about how your venture can go, you need to at least have a solid financial plan for your business, and contingency plans for every possible scenario. Studies show that more than 50 percent of start-ups fail in the first year. Will you be ready if your business becomes another statistic?
You’re ready to face a host of challenges
One sign that you’re ready to start a business is that you have reached a point in your debts where they’re manageable and under control, you know a lot about the hardships, rejections, and risks you’ll face in the industry. Being ready to face every possible scenario—both good and bad—may signal that you’re ready to start launching a new business.
Before you start your business, carefully consider your finances, financial plan, and target demographic. Live below your means, cut down where you can, and save up as much as possible. Study economic trends and gather information whenever you have time. And most importantly, it’s OK to be optimistic and hopeful about the prospects of 2021. Just take every caution possible to cushion yourself from the potential blow, and believe that better days can come.