Do You Have What It Takes to Start a Business?

Do I have what it takes to start a business? Am I good enough?

These questions haunt would-be entrepreneurs and most humans in everyday life, regardless of their mindset. They even nag entrepreneurs with a string of successes who are jumping into a new industry and asking, “Can I do it again here?”

Fear, doubt, anxiety, and the endless negative thoughts that visit you at 3 a.m. are a part of life, especially if you decide to own a business.

Adding to the anxiety is data from the Bureau of Labor Statistics that tells us only 49.7% of businesses survive their first 5 years (2016 – 2022). Other sources suggest that the failure rate for new businesses may be much higher.

Before you ask yourself how to start a side hustle or startup, the real question you need to ask is this: Is starting a business or side hustle worth it?

To that, I say, “YES!” — with some important caveats.

There’s nothing like having your own business and being your own boss. I believe that nearly anyone with a valuable skill or special idea has the potential to start, run, and have success in business. But few know what it takes to run a business and keep the right mindset to be successful.

Can You Handle the Risk of Starting a Business?

Having your own company is not for everyone. I’m not talking about aptitude, smarts, or skill sets. Most of these can be developed.

I’m talking about your affinity for, or aversion to, risk, uncertainty, and discomfort. Are you willing to ditch the idea of a 40-hour workweek and put in the time to start and run a small business? Can you maintain a “whatever it takes” mindset for months or years?

What Employment Provides

There’s nothing wrong with having a secure job, working your way up in a career, or finding a position you love and sticking with it for the long haul. Stable jobs provide:

• Opportunities to expand, grow, and develop yourself
• Security of consistent paychecks, retirement programs, and insurance packages (especially during stable economic times)
• Other benefits such as paid time off, sick leave, and having teammates who take up the slack when you’re not able to

What Owning a Business Can Provide

Your own business, while it may lack in some (or all) of these benefits, can provide so much more:

• Unlimited growth potential
• The independence to pursue ideas, opportunities, and passions
• The freedom to determine your work schedule, to take time for family or friends without having to ask a superior
• Most of all, the challenge of building something meaningful that brings you purpose

A business done right also allows you to build equity and inherent value beyond the revenue the business generates.

Okay. But Can I Do It?

Right about now, your mind may be circling back to the opening question: Do YOU have what it takes to start a business?

You want to be honest with yourself when answering this question, but you also don’t want to let past behaviors or limiting beliefs confine your aspirations. Scientists and researchers have demonstrated again and again that your past behaviors do not limit you. No matter how badly you’ve done in the past in life, or in business, change is always possible.

Organizational psychologist Dr. Benjamin Hardy says:

“The whole notion of ‘finding your calling’ has led people to having fixed views of themselves.

There isn’t just one thing you were born to do.

You can expand and grow in countless ways. Especially after you learn the process of learning. You can take all of your experience becoming great at something, and quickly become proficient at something else.”

(source: How To Change Your Life In 30 Days | by Benjamin Hardy, PhD | Medium)

Don’t Be Afraid to Start a Small Business!

Beliefs and formulas on their own can never guarantee success. What is certain is that a belief in yourself — in your ability to try new and scary things, to work hard, to make sacrifices, to get back up after stumbling, and to learn and grow each day — is a prerequisite for a successful startup.

Am I Willing to Do the Work?

So, if you’re thinking about starting a full-time business or a side hustle, my advice to you is not to ask yourself if you have what it takes. If you’re reading this, you probably do. Ask yourself, instead, if you’re ready to do what it takes:

• Ready for sacrifice, working long hours, and feeling a general lack of security?
• Ready to put in the time and effort involved, as well as take on the financial risks?
• Ready to use your skills, subject expertise, and network to start and, more importantly, see it through?

The answers to these questions will tell you more than anything I can add. If the answers are all no, that’s fine. You can change each of them to “yes” any time you want.

I’ve Got What It Takes, Now What?

If you’ve decided that you have what it takes to start a business and are ready to go, you’re going to need to cover some fundamental things before you hit the ground running with things like marketing and getting clients.

Develop a Comprehensive Business Plan

A well-structured business plan serves as a roadmap for your new company, outlining your business objectives, strategies, target market, and financial projections. This document not only guides your operations but also proves essential when seeking financing or partnerships.

Key components of a complete business plan include an executive summary, market analysis, organizational structure, product or service offerings, marketing strategies, and detailed financial plans.

Secure Appropriate Financing

Determining how to fund your startup is an important step. Options range from personal savings and loans to external funding sources like angel investors, venture capitalists, or crowdfunding platforms. Assess your financial needs based on your business plan and explore the funding options that align with your goals and resources.

Choose the Right Business Structure

Selecting the appropriate legal structure affects taxation, liability, and regulatory requirements. Common structures include sole proprietorships, limited liability companies (LLCs), partnerships (if you are going into business with someone else), and corporations. Each has distinct implications, so it’s advisable to consult with legal and financial professionals to determine the best fit for your business.

Register Your Business and Obtain Necessary Licenses/Insurance/Etc.

Officially registering your business name and securing any required licenses and/or insurance is a critical step to ensure legal compliance. This process varies by location and industry, so research local regulations and adhere to all legal obligations to operate your business legitimately.

By addressing these foundational elements, you’ll be better prepared to navigate the complexities of starting a business and position yourself for long-term success.

Key Takeaways

• Your success may be less dependent on what you have than what you’re ready to do.
• For your startup to succeed, you have to believe in your own ability to learn, get back up if you stumble, and grow.
• No formula or belief system can ever guarantee success, but a willingness to really work hard and make sacrifices is always a requirement.