From Passion to Profit: 5 Signs You Are Ready to Start Your Business

More and more Filipinos are thinking of putting up their own business, pouring their heart and soul into it as you probably would, too. Nowadays, you can find many people engaging in passion projects, whether it’s in the arts industry, retail, or freelancing. Any of these can be a ticket to turning your dream or passion into profit and earning extra income to support your savings plan.

Many say that when it comes to business, timing is everything. This makes it important to determine if you’re really ready to leap into the world of entrepreneurship. More than a soul-searching activity, taking this step can also help you develop a proper strategy on how to start a small business.

What signs indicate that now may be the time to have a business of your own? 

1. You can see the demand for your product or service
   
   As an entrepreneur, you have to think from the consumers’ perspective. Does the product or service you have in mind contain features that will make people buy from your business? If you can come up with offerings that are an exact match to your customers’ interest or requirement, it means you’re addressing a demand that can help your business flourish.
   
   Another way of tackling this matter involves observing what’s happening in the market. If you saw that your product or service could fill a gap or improve on what’s currently out there, then you have an excellent opportunity to start creating and sharing your innovation with the public.
   
   Tip: Test the waters by conducting market research using consumer surveys or product sampling to gauge how well people will respond to your business idea.
   
   
2. You can visualize the future of your business, and you have a plan to take it there
   
   Becoming a business owner requires a vision of what you want it to achieve, say, three to five years from now. This vision—whether it’s about making it to the top 10 companies in your industry or gaining popularity in the local community—gives you the motivation and confidence to chase your dream simply because you got it all figured out right from the very beginning.
   
   Equally important is having a business plan, which will serve as a roadmap or direction for how the company can achieve its goals. This is why many businesses organize annual planning sessions to review their previous performance and strategize for the year ahead. Similarly, your business plan can indicate your ability to propel your startup to success.
   
   
3. You have enough capital to propel the business forward
   
   Ideally, you should have saved up money for your dream project. You want to avoid venturing into a major business activity when you’re strapped for cash. Otherwise, you may run into money problems and end up closing the business all of a sudden.
   
   It’s also not a good idea to take out a business loan as it can put you in a situation where you’ll be paying off debt for years even if the company fails to become profitable.
   
   Then again, if you have a well-thought-out business idea that you can start even with limited capital from your pocket, that makes you more than ready to go on a business journey and help your company grow along the way.
   
   
4. You understand the potential risks
   
   Putting your money in a business doesn’t come without risks. Your ROI may take longer to achieve or be smaller than what you expected, or a member of your staff may be engaging in dishonest activities that are causing losses to your business.
   
   It’s also possible to deal with risks that are not related to finances, such as losing energy or interest while going through an emotional period in your life.
   
   Despite these, you should have a clear idea of what it means to possibly lose money or something important to you. At the same time, you should know how to keep the risks at a manageable level so it does not cause major setbacks in your personal or business affairs.
   
   
5. Your life situation is stable
   
   Business management requires a tremendous amount of energy, inspiration, and wisdom—things that you only get to enjoy when you’re doing well in key aspects of your life.
   
   If you’re coming from a huge life crisis, you may want to wait it out until you have fully recovered and have the clarity of mind before deciding to go into business. In the meantime, you could start collecting ideas for your project, study market trends, talk to business owners, and so on.
   
   Just because you’re facing challenges at the moment doesn’t mean you should forget about your dream business for good.
   

Turn Your Passion Into Profit

Starting a business can take you on a rollercoaster ride. Sometimes, it will make you feel bold and brave, but other times, you will feel unsure. Just don’t forget that your passion can do great things for your business. Staying true to that, while keeping your focus on your business goals is the key to success.

Apart from learning if you’re ready to start a business, you must look into ways to safeguard your business income against possible risks, too. BPI AIA offers insurance and investment plans that cater to your needs. Schedule a virtual appointment with our Bancassurance Sales Executives to discuss your options.