Ploymint

I recently had a friend who had to shut down his graphic design start-up and when we discussed why, it became apparent to me that being very skillful in your trade and managing a business are two completely separate things. I was blessed to have knowledge in both arts and business, most likely because I graduated business school while still maintaining my passion in writing and the fine arts, and so determining the failure of their business wasn’t hard after asking my friend some simple questions.

Owning your own business can be an incredibly difficult endeavor that you should only embark on if you’re fully prepared. The idea seems great to many people, and why wouldn’t it. You set your own hours, you’re the boss, and you make all the money. What most people don’t understand is that you also need to be good in sales, have an intense drive, be financially and strategically responsible and intelligent, as well as able to effectively manage and allocate skills. You can’t have the rewards without some of the responsibility.

If you’ve been thinking about starting your own business but haven’t thought it through, here are 5 signs that you’re not prepared to run a start-up.

5. You have no sales or marketing plan.

If you’re just starting a business, unless you can afford a storefront with good foot traffic, or good signage on a major road, you will undoubtedly need to figure out how to get customers into your doors and buying your products or services. Word of mouth is fine, but there needs to be a way for your product or service to get to the mass market. In my friend’s example, they said they had established existing contracts. This is okay, but as a business owner you must understand that at any moment existing contracts could evaporate. The business you are working with could go bankrupt, or the contract could come to an end and you’ll be forced to re-bid among a pool of competitors. Either way, existing contracts should not be your sole source of revenue.

You need to have a way to make money by appealing to local or digital markets. This could mean a variety of things depending on your business, but it will probably mean some investment and will definitely require thought. If you can not foresee how you will get new customers, don’t even consider starting a business.

4. You’re not on the internet.

If you’re starting a business today, it’s important that you get with the times. Believe it or not, there are still those rogue businesses out there that refuse to be on Yelp. This is a terrible idea, as it’s now much more common for people to look at reviews online for a business. Make sure that before you launch you have an online infrastructure. Be plugged into websites that can help facilitate bringing customers to you. Make sure that you have a working website where people can order direct, and can also contact you and see previous examples of your work. We are now dealing with hyper-informed and intelligent consumers who can buy directly from the wholesaler, so any barriers to purchasing your product or looking at samples could be disastrous.

Additional efforts like Social Media are applicable depending on your industry. Make sure that you are reaching the audience who would be most likely to purchase your services or products.

3. You’re lazy.

Starting your own business requires you to have passion for the project you’re working on. You have yourself to hold accountable for good or bad sales, and laziness is nowhere in the equation. The difference between a job and a career are huge, and the differences get even larger when you are the boss of your start-up. You need to be totally plugged in and dedicated to making your business work. Chances are the first couple of years are going to be rough, and you need to make sure that you are allocating your time in finding more sales. This could mean meeting with retailers, establishing networking relationships, or getting contracts to open projects. Either way, you need to always be aware of opportunities and be willing to go above and beyond.

You have no one to complain to when you’re forced to work 12 hour days, and you should be willing to work unpaid overtime just to ensure the business’s success. If that’s not something that you’re willing to do, you should re-think starting your own venture.

2. You are bad financially.

This could mean managing money, or just how much money you currently have. You need to be good financially. For a business this means organizing and saving records of every transaction you make for tax purposes as well as balancing your liabilities from your assets and ensuring you have enough liquid capital for day-to-day operations. A business owner can only stay in the red for so long, so re-investing personal funds month after month is probably not what you want to do. No one says that owning a business is going to be profitable immediately, but it doesn’t mean that you need to lose your entire personal savings. Revenue and profit are fundamentally two different things, and if you don’t know the definitions you should also probably not have your own business. Having another revenue stream for when you start your business is a good idea, as sometimes paying yourself won’t be an option.

1. You’re a bad people person/you have no business sense.

If you’re amazing at your craft, but you’re terrible with other people, just stick to what you do. There’s a good chance that you’ll make more money by being brilliant in your career rather than starting a business yourself. Starting and maintaining a successful business requires an understanding and desire to manage and build an infrastructure comprised of human capital. If you are a lawyer, having a good grasp on law is important, but to start your own firm you need to be able to manage other attorneys and build a blueprint for a successful and working firm. The same can be said for virtually every other industry.

Running a start-up requires passion and an intense drive to not only provide your product or service to the public, but the passion to build a brand and organization where many other people rely on you. If any of the above signs fits your personality, you should really re-think starting your own business. If you have the knowledge and skills to succeed however, starting your own business can be financially and spiritually rewarding.