It is crucial that you make sure you have the right business idea before you go ahead and start your business. In my previous post, I detailed the absolute need to not dwell on coming up with the perfect business idea. Yes, you do not need to have the perfect idea because it does not exist but you do need to possess the right idea for yourself. But how does one know if his business idea is the right one for him? It comes down to guts, feelings and also personal vision. Here are some ways you can use to see if your business idea is right for you.
Oh yes, we start out with the big ‘P’ word in the realm of business ideas. I would venture to say that passion is not the number one factor in the success of a business but it is important in deducing if an entrepreneur will be willing to suffer for the business. Most businesses take a long time to actually be successful, maybe even up to a few years or more. Along the way, there will be numerous hurdles and challenges to overcome to turn the business into a successful one.
Therefore, you should be passionate about the business so that there is a higher chance that you will persevere on when the business takes a downturn and hits the curb. When push comes to shove, will you suffer for your business? This is a question you should ask yourself. Will you be willing to sacrifice countless hours to fight for your business when it eventually faces its challenges? Usually, those who have an abundance of passion for their work will find that strength. It’s not a certainty but it is a positive correlation.
What is behind that passion?
I throw around the word “passion” quite liberally. But what actually is it? Simply put, it is a strong emotion of interest for something. Sounds vague, doesn’t it? We will break it down.
Usually, you have a passion for something, there is a reason. So, for your potential business, you have to look why you are interested in starting it. The first step here is to identify things you like or are interested in. This will tell you the kind of work you will enjoy. Here are some examples of questions you can ask yourself.
How do you like to interact with people?
Are you more spontaneous or process-oriented?
Do you prefer coaching somebody or making a final product?
By answering some of these questions, you get a sense of the type of person you are. When you look at your business, you should make sure it fits you as a person. Perhaps you like the act of coaching somebody, so a freelance consulting business can suit you.
If you are way off when looking at your personality and your potential business, then it might not be the right idea for you. You must envision yourself doing this business for the next two years at the minimum of 20 hours a week. How would that make you feel?
Lastly, you should make sure that your business fits your long-term goals in your life. If you are a married man with children and wish to spend a lot of time with them, then of course you should not look to start a business that will consume, literally, all your time.
Look at the business you want to start. Is it very scalable? Thus, if it is, it will consume more of your time. Are you willing to put in the amount of time required that will take you away from your personal life? If not, perhaps you can look to other types of businesses that will take less of your time, or something more freelance or commission-based which you can do on an ad-hoc basis. Then you can have more control over your time.
Before you start a business in Singapore, you should read up on the corporate tax rates. Here is a link to our article detailing that.
If you have thoroughly considered your business idea, made sure it is the right one, and are ready to turn it into a business, you should form a business plan. Our next few articles in An Entrepreneur’s journey will look at the formulation of a business plan.