11/03/2023
Starting a business almost always requires a mindset change. You are now in charge of the outcome. Many of us initially "fall" into our careers. Some work hard to get a college degree and then discover the field of choice does not bring them joy. I talk with many start-ups every week. They are filling up the entrepreneurial classes I teach. I hear this common thread: "I want to have more control of my life and purpose." Some have a hobby they would like to monetize. Others have a passion they want to turn into a business. Others have a skill set that other companies need.
Startups have a high failure rate for many reasons. Lack of planning is one of the big ones. Running out of cash before they make a profit is another. Owners get paid out of profit. I ask the following question to almost all of my clients and students. In three years, this business model needs to generate $$$ of profit (after everything else is paid) for you, the owner, to say it has been worth all of the "blood, sweat, and tears" in the process. For example, if your target is $150,000, you must figure out all your costs to run the business, save for growth and marketing, pay any taxes due, etc. Let's say that number is $150,000. That means your business has to generate a minimum of $350,000 in sales to make that number. If it cannot, you need to revise that plan. Passion is a requirement for most owners, but it does not pay the bills. You'll need to prove that the business model is financially viable. That initial financial goal determines financial viability.
Remember in this new adventure, "You hold the paintbrush."
