Below are a few considerations to take into account when making the decision to start your own company.
Assess Your Current Job Status
Necessity is the mother of invention: Are you starting a company because you cannot get a job that would allow you to do exactly what you wanted? You should consider your current job status and assess whether it's actually the right time to go off on your own.
Ask yourself: Are you happy and fulfilled, and are you making enough money?
Just because you are disappointed with your current job doesn't necessarily mean that you should start your own company; it might simply mean that you should consider changing jobs. Attempting your own venture is something entirely different, and it can be a huge risk. Spend some time seriously thinking through all of the options before concluding that starting your own company is the right choice for you.
Take a hard look at your past experience
If a musician decides to revolutionize the medical industry, he's likely to be met with skepticism. There are intricacies in any vertical or marketplace that one must understand. That said, an insider perspective is not always essential –- sometimes it takes an outsider to impact an industry.
If you can write code and are capable of creating a prototype of your idea on nights and weekends, this process may be helpful. Most, if not all, ideas can be prototyped and if you can do this while still working at your current position, a great deal of risk will dissipate. You might be able to go all the way to market without even quitting your job.
Consider Your Age, Family and Financial Situations
As we mature, we naturally become more conservative (in the literal sense of the word): We want to conserve what we have. Young people aren't necessarily foolish; they simply have had less time to accumulate knowledge (and wealth), and they often possess a bigger appetite for risk. Recognizing and understanding all of the challenges that lie ahead is very helpful when taking risks — and starting a company is a big one.
Regarding family and finances, the responsibility of looking after others requires time and attention, and many entrepreneurs don't have kids when they first start out. That being said, having to provide for others can be a huge motivator. On a similar note, you need to make sure that you can pay the bills in the event that your business takes some time to get off the ground or even if it fails to successfully launch altogether. Assessing your particular situation in-depth and keeping the channels of communication open among family members is crucial when embarking on a venture like starting a company from scratch.
Test Your Idea and Be a Good Communicator
The number one reason most people don’t start their own companies is because they are unsure of what they want to accomplish or they talk themselves out of it.
Talk to your friends, family and network, and beta test your idea. Get feedback and use it wisely. Testing the waters this way can be a good indicator of your business idea's potential for success.
Many job descriptions require "excellent written and verbal communication skills" for a reason: Good communicators are often essential when establishing a business, product or company. You don’t necessarily have to be persuasive or an extrovert in order to be a successful founder or CEO but those qualities often make it easier to sell ideas. There’s nothing like an honest communicator to establish trust, and people are going to need to trust your vision. If you don’t have these skills, at some point you may need to hire someone or find a CEO with this skill set.
It's likely that you’re going to be told many times that whatever you are doing can’t be done. Smart people are going to tell you that you are wrong. People won’t want to invest in your idea, and you will be criticized. Use this criticism to work harder and prove the naysayers wrong.
When it comes down to it, pessimists don’t start companies optimists do. The odds are stacked against you, so you have to be able to look at the glass as half-full.
All in all, before quitting your stable job, think long and hard about the decision. Do the benefits outweigh the risks? Are you able to accept the possibility of defeat? If so, you may be at the start of a road to successful entrepreneurship.