When to start a business
How To Know When You're Ready To Start A Business
how to know when you are ready to start
a business well the truth is you're
never ready because whatever you think
it takes you think it's gonna take much
this much time it's gonna take this much
time you think it's gonna be like this
difficult it's gonna be this difficult
so you're never quite ready to start a
business so in fact I talked about this
in an other video that the worst time to
start a business is when you are
desperate the worst time to start a
business is when you need money you
shouldn't start a business when you need
money desperately if anything should
start a high income skill first before
you start the business but let's say
that you are ready mentally emotionally
as well as financially now you're ready
to take a leap of faith
well how do you know that you're
actually ready so here are some of the
signs that you should pay attention to
you that if you meet some of these
criterias then maybe you are ready to go
out there and build your empire sign
number one you have a clear profit path
meaning that you have a very clear idea
of how you're gonna make that first sale
how do you make that first profitable
sell not just hey I've got a good
product this is my service this is my
widget let's go out there and hopefully
someone likes it no I mean in your mind
you are very very clear about how to get
this product out there in the
marketplace where those customers are
where are they hanging out how are you
gonna convert those leads into customers
you have a very clear idea how are you
gonna make that first sale not just a
first sale but how you gonna make their
sell profitably meaning let's say you're
selling you're selling a thousand dollar
thing right your product and then your
cost is a hundred bucks
right
and then you're gonna spend 100 200 $300
acquire that customer profitability
versus your thing is a thousand bucks it
cost you a hundred dollars but it
actually cost you a thousand dollars to
acquire each customer that's not a
profitable customer right so you're not
even breaking even unless you can answer
that question how could I make that
first profitable sale that's your profit
path that's sign number one sign number
two you have a very clear business model
what is a business model meaning how I'm
gonna monetize this car gonna make money
so now you know how to make that first
profitable sell you have a clear profit
path but then what is the overall
business model right what what is gonna
make you different from everybody else
in the marketplace maybe after your
first initial product you're already
thinking well I'm gonna build a customer
base then I'm gonna offer them something
else after the first product and
something else after the second product
that's a business model right there's a
big difference between selling something
a money maker write it down
versus building a business most people
they have a money maker if you don't
have a business right they have a
product that's all they have right this
is a product a business has a business
model so until you're very clear of your
business model then you're not ready to
start a business signed number three you
have an edge what is an edge an unfair
advantage that you are bring to the
table something that allows you to
defeat use yourself in the marketplace
to penetrate all the noise that's out
there right what do you do like what
makes you different why should people
buy from you and not everybody else if
they're buying from somebody else why
should they switch you cannot just say
all because I'm debtor no what is the
edge that you're bringing to the table
maybe you have a technology maybe you
have certain relationship maybe you are
a superior marketer maybe you have a
superior process that you have spent
years with finding whatever that might
be something that it's very difficult
for other people to compete in my case I
have a very compelling brand a very
strong personal brand
as an edge if I go into some other
industry and verticals I can bring that
to the table that is an edge not the
only edge I have but it is one edge in
other in other scenarios maybe is a
technology that I'm bringing to the
marketplace but maybe it is something
other out of things I'm bring to the
marketplace whatever it is I need to
have an inch if you want to win
you cannot just start a business with an
e-2 attitude because he's gonna get
slaughtered it's gonna cost you a lot of
time a lot of money and if fourth sign
that you are ready to start your own
business is you have some capital you
need some money to get started right to
be able to survive and sustain for a
period of time so when you have no money
to start a business well then you're
making decisions based on scarcity right
based on desperation it's very very
difficult to make strategic decisions
when you don't have any cash coming in
so only start a business when you put
aside a certain amount of money I
believe a certain amount of money then
you can start knowing that it's gonna
take some time for this thing to ramp up
and then it's your good chances are most
of the time most people make it fifty
percent of the businesses fail in the
first two years ninety to ninety five
percent fail in the first five years
your odd is not good and every single
time I say it every single time I hear
from entrepreneurs
I am the exception I am deaf 5% they
never think there that 95% no one starts
a business thinking that they're gonna
fail they are overly optimistic
sometimes that's the problem with
entrepreneurs they haven't failed enough
so they are very naive they overly
confident versus thinking more like an
investor Hey what is the downside what
could I lose can I live with a downside
see that's being smart so you need some
capital how much capital is up to you
depends on the business type what you
are starting right but more at least you
have some capital as well as you have
access to capital meaning you can form
from banks and financial institutions
from private investors to go to fund
your adventure that's number four
sign number five you are ready to start
a business when you are okay not making
money for a long period of time what
then say it again you are ready to start
a business you know you're ready when
you're okay not making money for a long
period of time if you are starting a
business with the the pure motivation
and intention is just to make a quick
buck you're not going to be successful
now it doesn't mean you don't want to be
profitable right doesn't mean you don't
you don't know profit doesn't come into
the play
it absolutely does but if your focus
just to make a quick buck and make money
you're not gonna be successful why
because if you focus on chasing the
dollars chances are you're not solving
problems you should be in business
because you want to solve problems in
some way shape or form you're fulfilling
a need in the marketplace you'll bring
your entrepreneurial skill to the
marketplace this is not like a typical
if you are employee every single month
every two weeks you're gonna get a
paycheck as an entrepreneur we eat last
this why it's called profit you don't
get a paycheck you get a you pay your
vendor your pay your lease you pay
everybody else
you pay your team you get paid last
right and you pick and you get paid you
know you wait the longest because the
first few years not a few months first
few years sometimes the first ten years
you're just working and working and
putting your time into the business and
hopefully it would grow and you know you
will thrive and you will have a big
payday by the beginning you're just
putting in your sweat equity that's why
most people don't understand anything
long that's not a business and six
months a year or I'm gonna be on the
beach no no even the ones who are
successful chances are some in some
cases it took them decades to get to a
certain
a certain stage in terms of business
building to a significant business some
cases 15 20 years so are you willing to
delay the gratification are you willing
to wait if you're not willing to wait
don't forget about it you're not ready
and actually you shouldn't start a
business because that's the reality
everybody tells you the good story oh
it's great right you see on the cover of
magazine this entrepreneur make X amount
dollars disc entrepreneurs sold his
company for gazillion dollars
well you never see the entrepreneurs who
died financially who go bankrupt you
don't see those entrepreneurs on the
cover of the magazine so you see the one
that makes it you don't see the hundreds
of thousands of guys right so this is
how we are overly confident so those are
some of the signs and signals that tells
you and tells me that you are ready to
start a business so comment below no
[ __ ] no overly optimistic are you
ready to start your own business call me
below
