With in excess of 500,000 people choosing to start a business in the U.S. every single month, you certainly won’t be alone as an entrepreneur, but whether you survive as one, is another question.
While there is no crystal ball that can predict a business’s success, there are some very tangible signs to look out for which can indicate whether your business is destined to make it, or not, and here are 9 of them:
- You’ve built a reliable team
If you’re starting a business with a solid team of key executives, or a partner, you’ve already fought half of the battle. When choosing who to go into business with, carefully consider whether your experience and skills complement one another.
- Your support system is strong
From personal relationships to business, having a strong and supportive network of people behind you can help you forge ahead with confidence.
- Your finances are in good order
Personal or family savings provide a source of investment for the vast majority of startups, but if you miscalculate your needs, or mismanage that money, you face running out of cash, and being forced to close the doors on your enterprise. Get yourself free of debt and maintain a good credit score, and you can shift the focus from your personal finances, to those of your business, and be in a better position to gain loans and lines of credit.
- You have a sound business plan
Spelling out what you want to sell, who will be buying it, how you’ll provide it, and how you’ll sell it, your business plan should be well thought out and as detailed as possible. Check for online samples and templates, or invest in business plan software to help you achieve this.
- You’ve got industry experience and business knowledge
Before launching a business in an industry you have no experience in, it’s vital that you learn as much as you can about it before taking the plunge with a completely new career path. Consider working or interning for a similar business within your chosen industry to get a feel for it, and definitely invest in professional help with marketing, sales, bookkeeping and accounting.
- You’ve proven that there’s demand for your product or service
Coming up with a great business idea is all well and good, but if you’re the only one who thinks it’s great, you could be setting yourself up for failure. With thorough market research, you can better identify your target audience, find out what problem your product or service can help them solve, and how much they would be willing to pay for it.
- You’re persistent
If you truly want to succeed at your business, you’ll need to be prepared to sacrifice some of your personal life, for your work life. Running a business, especially in the early days, weeks, months and even years, can take up a lot of hours, and cause you a lot of stress, so you’ll need to be persistent and willing to push hard and persevere to achieve your goals.
- You’re passionate
Whether you want to make a lot of money for yourself, make a difference in your local community (or the world), or simply have fun, you’ll need to have plenty of motivation to pursue your business dream, and be passionate about what it is that you want to achieve.
- You’re willing and able to take some calculated risks
Starting any kind of business is risky, and while you must be willing to take some in order to succeed, those risks should be calculated and well-assessed.
If you’re an entrepreneur and can relate to most of the points listed above, then congratulations; there’s every chance your new business will make it! However, it’s important to never be complacent, and to seek professional help for any aspects of the business you aren’t skilled or experienced enough to handle well, such as bookkeeping, payroll, or accounting.