The signs that you aren't ready- the response's of the unprepared. 

They “know” what they want. They say they want a coffee shop, an ice cream store, a consulting business, a neighborhood bar or any number of opportunities. Our job is to simply ask, “Okay, tell me why that is what you want” and then listen. If you hear “I think…” or “I heard…..” or “I have always wanted….” the alarms should be going off. You will quickly realize that they are charging forward on emotion and too often, that charge leads to failure.

• What you should hear is “I’ve investigated and I have found I can afford it, the lifestyle it provides seems to coincide with what I want for me and my family and I feel it gives me the opportunity to use my business and personal skills to good advantage”.  

They are supremely confident. Put very simply, if they are not scared, they don’t know enough. Remember, these are all very successful people. They cannot imagine not succeeding in everything they do. Believe it or not, this very high level of confidence increases the chance of failure. People who are over-confident tend to do less due diligence (“ I understand business!”), are more likely to ignore a successful business model (“I know a better way!”) and will almost always downplay how hard it will be (“If it normally takes 5 appointments to make a sale, I know I can do it in 3!”) . 

Money is no object. Obviously, if they have always succeeded, they cannot imagine their money running out. They have made money and are proud of it. The cost of an opportunity takes on too little importance, since they know they will succeed. If your client cannot show you a realistic proforma, based on real financial data (if it is a purchase of an existing business) or on the actual experiences of people in like businesses (in the case of a franchise or an individually-owned start-up), they are preparing for failure.

The reality is that some of the folks that come to us for help in having their own business will, after doing the right due diligence, decide they really don’t want their own business after all.