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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