Is Business Ownership Right For Me?

Have you ever asked yourself “Is business ownership right for me?” A large number of people when asked will say that they would like to own a business. However, when digging deeper, these same people aren’t really clear on what involved in owning a business. Here are 7 questions you should asked to find out if business ownership is right for you?

1. How long can you go without having a regular income or company benefits?
3 Points - I have other income.
2 Points – I can go 6 months, but then I have a problem.
1 Point – I have a family that dependent on me and I can’t risk going 1 month without income. I’ll save more and re-evaluate next year.

2. Can you emotionally handle not knowing where or when money will be coming in?
3 Points – I handle risk and change well.
2 Points – I feel confident in my abilities but worry about outside forces.
1 Point – I feel better knowing I have a regular income coming in and don’t want to risk it.

3. Do you have savings, a reserve or access to funds that could cover your personal commitments for at least 2 years while you build your business?
3 Points – I have a good reserve and other sources of income.
2 Points – I can’t go for 2 years, but I have a reserve, loans from family and friends and a plan for building the business quickly.
1 Point – I don’t have a reserve and not sure about how I can raise money.

4. Are you willing to reduce your standard of living, such as your entertainment, holiday and clothing budgets, and put those funds towards your business?
3 Points – I’m ready to cut my expenses to the bone.
2 Points – I’m willing to make cuts, but I don’t want to give up too much for too long.
1 Point – I’m not prepared to make any changes in my lifestyle.

5. What are your personal income goals for the next 5 years from your business?
3 Points – I would like to be earning at least my present salary and have a healthy business.
2 Points – I expect to be earning double to triple what I earn now.
1 Point – I see myself as the next Donald Trump.

6. How do you see your business affecting your personal life?
3 Points – Although eventually I want a more flexible schedule, I’m willing to do what it takes for the next 3 years.
2 Points – My family takes priority before the business.
1 Point – I expect my employees to run the business.

7. Will it be possible for you to enjoy the time commitment and personal rewards that you desire?
3 Points –This is so important to me and I know building a business is just what I want to be doing.
2 Points – I’m pretty sure that I will get a lot of pleasure from being in business and will adapt to any surprises.
1 Point – I’m not sure if I can make it happen.