8 signs you're not ready to start your own business

 

man worried nervous thinking listening

  • Not everyone is suited to owning a business – and that’s OK.
  • Some people don’t have an entrepreneurial mindset, and there are clear signs that you’re not ready to start a company, according to Uptima Business Bootcamp cofounder Rani Langer-Croager.
  • There are also some practical matters you should have in order, particularly your finances.

Despite the entrepreneurial hype of the Silicon Valley era, not everyone is suited to owning a business — and that’s OK.

„Starting and growing a business takes a lot of energy. It’s very risky,“ Rani Langer-Croager, the cofounder of Uptima Business Bootcamp, told Business Insider.

There’s no shame if you are happier as an employee, as some people don’t have an entrepreneurial mindset. Though you can develop entrepreneurial traits, your business would need to be something „that you can’t not do,“ according to Langer-Croager.

From issues of risk appetite to matters of personal finance, Langer-Croager shared eight signs you might want to keep your day job, at least for now.

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1. You have a low appetite for risk

Here’s the harsh reality of starting a business: around 70% of startups are no longer in business by year 10, according to Fundera.

Even if your product or service is fantastic, there are a host of snags you can hit, from running out of money to running out of steam. To deal with this risk, „every entrepreneur should go into this with their own timeline“ for when they expect the business to turn a profit — and pay its founder a salary.

This timeline should be „tied to their own financial wellbeing,“ Langer-Croager said. In other words, figure out how long you can afford to allow your business to grow without getting something back from it, knowing that there’s a chance your startup might never turn a profit. She said that doing so „makes managing that risk a little easier.“  

2. You have a „scarcity mindset“

„People who are in a scarcity mindset think there aren’t enough opportunities or resources for them,“ Langer-Croager said. This can result in a sense of desperation that can lead you to pursue avenues that hurt your business, rather than holding out for better opportunities. This is a pitfall even for seasoned business owners during down times, she said.

„Working on your own relationship with money and knowing that relationship might be deep-rooted“ may be necessary to remove this obstacle to becoming your own boss, according to Langer-Croager.

3. You need a quick profit

Small Business Trends reported only 40% of startups actually turn a profit and 82% of small business failures are tied to cash-flow problems.

It can take years for your business to become profitable enough to pay yourself a living wage, Langer-Croager noted. „If you’re trying to make cash quickly, you’re going to put a lot of pressure on the business that’s not going to allow it to grow the way it needs to grow,“ she said.

See the rest of the story at Business Insider
Source: business insider

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