Being your own boss can be rewarding – but before you take the plunge, do your homework and write a plan. Having the freedom of running your own business can be the best decision of your life – or worst. It all depends on what you do before you get started.
Will I have enough customers?
Often the best way to find out whether people will buy your product or service is simply to ask them. Some basic questions are: do you like this product? Would you buy it? What would you be willing to pay for it?
What is the competition doing?
It is vital you understand who you are competing with and what product or services they have on offer. Get out there, try their products or service, ask other people what they think of them and how they compare to you.
Develop a business plan
Developing your business plan at the outset will help you build up your business in a thoughtful and considered way. Set milestones to work to, which will help you understand when you are not doing so well and what you can do to get back on track. Regularly revising your business plan will also help you manage things.
Create a cash flow forecast
This will help you predict when commitments are due, identify periods where shortages of cash may occur, pinpoint the best time to to buy or replace equipment and predict when you have sufficient cash to reduce debt or make a transfer into a savings/investment account.