When the job market is tight and jobs are scarce, there becomes an increase in returning students and entrepreneurs. Many people are enticed by the idea of working for themselves. Regardless if it is buying a franchise, starting something from scratch, or wanting to be an independent consultant there are 5 questions to consider before entertaining entrepreneurship as a career choice.
1. How long is my financial run way? This pertains to how much money you have in savings to live off of while you are building your business. It could take almost 2 years to build something to a sustainable living wage.
2. Can I be self insured? This is often a deal breaker for many would be entrepreneurs. Check into this early. It is easier for people who can be covered under another persons health plan.
3. Am I running towards the option of working for myself or just running away from the idea of a traditional job? Being an entrepreneur is not a default to job search. To be successful it will require focus, discipline and passion. It is the hardest job you may ever have.
4. Have I thought through all the aspects of what it takes to run a business beyond the idea? Many people have cool and novel ideas but don’t recognize that as business owners they will have to tap into a broad range of business skills, even some which maybe beyond their interest or skill set. A great book for aspiring entrepreneurs to read is The E-Myth by Michael Gerber.
5. Is my family on board? The work life of a budding entrepreneur can take on non traditional work hours, especially in the beginning. The work week moves from being defined as 9-5 Monday -Friday, to all waking hours any day of the week. Families also need to be on board with sporadic income and cash flow. There is no longer a set paycheck for the same amount every 1st and 15th of the month.
Once you consider these five questions, then comes the fun time of moving that cool and novel idea forward. But before investing in a business name, business cards and a website, invest a little time in assessing if being an entrepreneur is the right career choice for you. These 5 questions will be a good start.
