Introduction
Both exhilarating and nerve-wracking is the process of launching a new company. It will be one of the most significant financial commitments you make in your whole life. Not just monetarily but also emotionally and psychologically. Getting something done the proper way will require you to assume many duties and give up many things you care about. It is also going to need you to put in more effort than you ever have before.
Because of all of these factors, not everyone is cut out to be a company owner. Even before you make your first sale, you will be in serious trouble if you don't have the knowledge, charisma, and commitment to run a successful business. So, before you start making plans for your e-commerce business, you need to take a good, hard look at yourself, your family, and your money and answer many important questions openly and honestly.
The following set of questions is designed to assist you in evaluating your qualities and beliefs in light of the reality of running a company. It is not a cause for alarm if you discover any questions that highlight areas of uncertainty or deficiency. Nobody is the ideal candidate for any given line of work. However, if you discover that several questions raise concerns, you may want to reconsider your plan to start a company.
1) Would you be willing to take on the responsibilities of running your own business?
Put out of your mind the neat little set of obligations that came with your job in the corporate world. When you own a company, you are responsible for everything, from opening the doors in the morning to closing up shop and cleaning up after customers leave at night. Then, when you return to your house, you start worrying.
There is high tension, the hours are long, and there is always excessive work but not enough time. You will be required to interact with your clients and your staff. You will be in charge of the company's financial management as well as the administration of tax matters. In addition, you will be required to fill out several documents and sign numerous checks.
Make sure you understand what you're getting into. Regardless of the occupations you've had when you run a firm, you'll be responsible for a more significant number of things than you ever have been in the past. If you can get your head around this fundamental concept, you'll have no problem shouldering the burden of the tasks placed on you.
2) Do you find it easy or difficult to make difficult decisions?
As a business owner, you will have to make many decisions that will affect the company, your own way of life, and the lives of your employees. Many life decisions are complex, including choosing to fire employees when your company is struggling financially. It will require you to be strong-minded, determined, and determined. If you work to make decisions when presented with complex options, this might be an area in which you struggle.
3) Do you believe starting your own company is the best method to amass wealth quickly?
Try to rethink this. At least, in the beginning, people who want to start a business must give up some of their income. They are prepared to give up their freedom for a price like this.
Suppose you are considering quitting a promising position with a handsome salary to establish your own company. In that case, you need to be honest about your financial requirements and evaluate whether the firm can satisfy those demands. Keep in mind that you are constructing a company.
It may take you many years before you reach the amount of revenue that you desire or need. On the other side, you could conclude that you're prepared to forego a certain amount of financial gain in exchange for the opportunity to be your boss. It has been deemed by many individuals to be well worth the cost.
4) Are you going into business because you have no other choice?
This is a genuine concern, particularly in light of many experienced businessmen and businesswomen who have been thrown into the job market due to corporate downsizing in recent years. This has caused many people to find themselves without employment in the business world. Be cautious if you identify as one of these individuals and believe establishing a company is the only choice available since you have exhausted all other possibilities. Suppose you are ready to make the required commitments and sacrifices. In that case, it certainly has the potential to be the solution to your worries about your financial future. The world of being a company owner is substantially different from the world of working in corporations. Before making the transition, you should ensure you understand the differences.
5) Would you consider yourself to be organized?
You will have to take on a variety of duties so that your company can continue to function normally daily. Let's assume a typical day. You may need to process payroll, communicate with vendors, pay some bills, work on a new advertising leaflet, and complete some tax forms. You will, meanwhile, be responsible for fulfilling orders and ensuring that they are delivered on schedule. Then there's that pesky element of surprise, like when your computer crashes or the air conditioner stops working.
As the owner of a firm, you'll need to juggle many different responsibilities at once. Your skill at juggling all of these obligations will have a direct bearing on how successful you are. When you are highly organized, you will have a list of the things you need to accomplish, and you will work your way through the list logically during the day. If you are disrupted in the middle of anything, you will return to where you left off after resolving the issue. If you are not completed by the end of the day, you will remain in the exact location and continue working until you are done. Procrastinators do not do well in business. If you get behind, you're sunk.
6) Do you have an imaginative streak?
Any company would benefit from having it. There will be other people selling your goods regardless of how good it is so that you won't be the only one. Advertising and marketing are essential tools for attracting the attention of potential consumers and convincing them to make a purchase. Suppose you have a creative streak, whether copywriting, graphic design, or even an unusual sense of humour. In that case, it will be a great addition to your company, whether you use it to write, create, or make people laugh.
This is doubly true in E-Commerce. Because your customers can't see the products they're buying "in the flesh," so to speak, the way they look and what they say about them in your ads need to catch their attention and make them want to buy.
7) Are you adaptable?
Suppose you want to be successful in business. In that case, you can't afford to spend time, effort, or emotion lamenting the failure of your concept or strategy. You need to think of an alternate approach to the problem very soon. The capacity to be flexible and adaptable is essential. You'll need to maintain your concentration if you want to accomplish what you set out to do. Still, there's a possibility that you'll explore several other avenues before arriving at your destination.
For example, one kind of marketing could work for a time in e-commerce order, but it might stop being effective. When that happens, you'll have to think of something fresh to do instead. It is essential to keep in mind that every company strategy and every firm.
May profit from a new perspective now and again, even when everything seems to be operating normally. This is true even when everything appears to be usually working.
8) Do you have a goal-oriented mindset?
This quality is beneficial in many facets of life, but it is instrumental in business. As the owner of a company, your objectives will be laid out for you in very straightforward and specific terms: total sales and net profit.
A successful entrepreneur begins each new year with fresh objectives and uses these objectives as driving factors over the year. Let's imagine that in the first year you were in business, your total gross sales were $500,000, and your net profit was $100,000. You may decide that your target for the next year will be a twenty per cent rise, equating to $600,000 plus $120,000. Your daily motivation will come from the goal of reaching or exceeding those numbers.
Goal-oriented people also make plans for the future. In the long run, you can decide that you want to broaden both the range of products you provide and the audience you focus on. You will have a long-term strategy that details the time of your growth and the actions that every facet of your company will take to handle higher traffic.
9) Would you consider yourself an optimist?
It is essential to approach every facet of one's life with the appropriate mental attitude. It is necessary to have a good mood and seek the bright side of things to weather the storm when you are confronted with challenging circumstances.
This is especially true in the corporate world. It is a journey that, by its very nature, has high and low points. For example, the first year or two in operation are often the most challenging years for any company. You may spend months getting everything set to launch, carefully picking the products you'll carry, and putting together a plan for promoting your business. The next step is to send out your first email, at which point you will impatiently wait for the phone to start ringing off the line and your mailbox to begin filling up orders.
However, nothing takes place. Perhaps a few purchases come in gradually, or maybe you receive a few phone calls with queries about specific products. Even if you know this is not an exceptional occurrence, you will still feel anxious about it. Suppose you're the kind of person who gets discouraged when things don't exactly go as you'd want them to. In that case, you could have difficulty dealing with the emotional roller coaster any business will take you on. Maintaining a constructive and optimistic frame of mind is necessary to make it through difficult times and put in the effort required to hasten the arrival of more good times.
10) Do you have any previous experience that you may put to use in the management of the company?
If you do, it will make getting a handle on the company much simpler for you. A prospective new company owner with previous experience in sales, accounting, advertising, marketing, personnel management, taxes, or any other business-related job is in an excellent position to succeed.
Having prior experience with computers is required to participate in e-commerce since computers are essential to the process.
You need to know both the hardware and software of computers, and you can't be afraid of computer experts and "geeks." Instead, you need to be able to work with these oddball people who often have specialized skills.
11) Do you find it enjoyable to collaborate with other people?
When you work in retail, one of the unfortunate truths you have to face every day is that the customer is always right. It is a well-known fact that running an online store puts you physically far away from your customers because you don't get to see them very often. However, this does not absolve you of the need to provide the same level of service and civility to them as you would if they were physically present in your presence.
You may expect to face the same challenges with consumers while operating an online business as you would when using a physical storefront. You'll get complaints about your product, pricing, service, policies, and workers. Believe me when I say that no matter how perfectly you believe you have things ordered, someone else will always find something wrong with them.
At this point, tact, patience, and understanding will be quite helpful. When a client is dissatisfied, you have no choice except to put up with their conduct and make an effort to fix the problem. A poor reputation is a very last thing that your company needs right now. If you let a disgruntled client go, you can be sure that the individual will spread the word to all of their other friends about how bad your business is. As a consequence of this, a significant number of prospective clients won't end up becoming regular customers.
So, there will be times when you will have to swallow your pride and apologize to the customer quickly and nicely, even if all you want to do is tell them to "take a walk." The person you are dealing with may be on the other side of the country, so you may need to make a personal phone call and send a special delivery overnight. Or issue a refund accompanied by a handwritten note saying that you are sorry the purchase did not go as planned but that you look forward to assisting them in the future. Just remember to ensure that the client is delighted. You will also be required to interact with the individuals employed by you. Your company proprietor's actions will serve as a model for how your staff should conduct themselves. Others will do the same if you project a pessimistic and judgmental attitude. However, if you have a positive attitude and are always cheery, it will be mirrored in how they act.
You'll need to put up a strong front at some points. Managing people isn't simple. If you're fortunate, most of your workforce will make you smile, put in an honest effort, and make valuable contributions to the company's success. On the other hand, many will be annoying, unproductive, bad at their jobs, or even lie. It is going to be challenging to get them motivated. If you cannot modify their conduct, you must be able to terminate their employment.
12) Do you feel at ease when dealing with money?
Some individuals are terrible at managing their money. Others are capable of it but despise doing it. Whether one likes it or not, business ownership comes with managing one's company's finances. You will be responsible for many intricate monetary matters, from securing funding for the company to managing day-to-day cash transactions. You will be responsible for paying the bills, making bank payments, processing payroll, and submitting withholding taxes and quarterly reports to the Internal Revenue Service and the state. Some dangers come along with the duty of managing significant sums of money, and you could be exposed to some of them.
You will also be responsible for developing business strategies. These are specific forecasts of your revenue and spending for a certain period, often three months, six months, or a whole year. You want to make the most of your money while cutting your costs as much as you can. These are relatively straightforward goals. However, they need meticulous budgeting and preparation in advance. How much would the bare minimum cost to staff the firm be to keep it running? What are the costs of your overhead and your utilities going to be? How much of your budget is allotted for advertising purposes? When are the taxes scheduled to be paid? What factors will go into determining the prices of the items you sell? How much will it cost to send something to me and handle it?
Your previous expertise in the financial world, if you have any, will benefit you in this element of your company. And if you are the sort of person who enjoys this kind of action, it will work out well for you. However, if you feel it will burden you, you must be prepared to cope with it.
13) In terms of your finances, are you ready to launch a new venture?
To get any firm off the ground, you need capital. When creating a small business that you'll run in your free time, one of the advantages of e-commerce is that you can make it as straightforward or complex as you want. This is especially true if you run the business in your spare time. Many individuals have found success in the company by starting an online store with just a moderate amount of initial funding.
But the more ambitious your goals are, the more money you will need to put into them. Suppose you want to run an e-commerce firm full-time and sell various items. In that case, your initial capital expenditures will be much more significant. After then, a fresh set of things to think about comes into play. Do you have the savings necessary to keep you and your family afloat for a certain amount of time while you wait for business to start back up? According to the recommendations of some business advisors, you have to have sufficient liquid assets to last for one year with no income at all. Although reaching that objective may be impossible, you should consider what would occur if the firm were a complete failure. Do you possess the means necessary to survive such a catastrophic event?
You need to look at your money before planning your company, so do that first. How much of the money that you have access to are you prepared to put at risk? Are you ready to put your name on a personal guarantee for a company loan? What kind of assets do you have that we could use as collateral? How much money do you plan to put aside in case of an unexpected expense? Are you open to the possibility of starting the company with a partner or partners if you don't have enough money to accomplish it on your own? Are you planning to put all your eggs in one financial basket with the company?
The most common reason for the collapse of small enterprises in the United States is an inadequate amount of available cash. Despite this, many individuals continue to launch firms on a shoestring budget, despite being poorly equipped to weather the challenging economic climate. Suppose you cannot establish your company with a solid financial cushion. In that case, you may be taking a risk you cannot afford.
14) Is your family prepared to fully commit to the opportunity?
Whether or whether family members take an active role in the operation of the firm, the fact that you own a company will significantly impact all of them. If you're the only one engaged in its day-to-day operations, the rest of your family probably won't see you as often as they would. This can present issues for them if they are used to seeing you around at night and on the weekends.
Your partner could be dissatisfied that there is less time for the two of you to go out to dinner or the movies. Because you aren't there, they may have to take on much more responsibility at home. For example, they may have to drive the kids around, help them with their homework, grocery shop, cook meals, clean the house, pay bills, and take care of many other everyday tasks.
Your children may also need to make some significant changes. You may be unable to make it to the games of Little League, the dancing recitals, the school plays, and all the other activities that happen throughout childhood.
There might be some repercussions for your family's finances due to this change. If you're anything like the other new business owners, you'll have to keep a tight ship for the first few years. Your family will have to come to terms with the fact that they may not be able to afford some of the things they were used to having available.
It is of the utmost importance to consider the prospective difficulties faced by one's family. Gather everyone together in one place, and explain what you are considering doing. Ensure that they know what this change would entail for the family's day-to-day activities and inquire how they feel about it. Having their help will make everything a lot simpler for you. Simply taking care of the company will be a source of sufficient stress for you. A family problem is the last thing you need right now.
On the other hand, having members of your family work with you in the company may be pretty rewarding. The dynamics of family businesses can be quite volatile, and you'll want to ensure everyone can get along. A central question will be, Who's the boss? Are there no ambiguities about who has what authority? Do you and your partner plan to share equally in the ownership and running of the business? If that's the case, can you collaborate positively and consider each other's points of view? If that's the case, you and your partner shouldn't have trouble managing the business together. However, things may not go as well if you can't agree on what soap to use.
15) Do you have the ability to cope with stress?
It is an inevitable part of the job. Dealing with people, working long hours, having an unending amount of responsibility, and being concerned about money all take a significant emotional toll. Stress may be beneficial to specific individuals. They can perform better as a result of it. They can maintain composure in the face of chaos and adapt readily to different circumstances. When things become too chaotic for certain people, they break apart. Which kind of person are you?
16) Would you say that you're in excellent health?
The management of a company may be mentally and physically demanding at times. It is possible that you will be required to spend a lot of time walking about and will not be able to get as much sleep as you want. And not have as much time to exercise frequently or eat healthily. There are likely to be tasks inside the company that needs a significant level of physical strength on the employee's part. Conduct an assessment of your current physical state. Do you suffer from any ongoing health conditions that can impede you from effectively running the firm? Remember that if you own the company, you must be at it daily. A protracted absence brought on by a significant sickness can signal doom for the endeavour.
Conclusion
These questions may be painful and challenging to think about. Still, they are necessary if you want to determine whether or not you are ready, willing, and able to operate your own e-commerce business.
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