Starting your own business is a potentially life-changing endeavor, so you have to know exactly what you’re getting into before taking the plunge. Here are seven questions to ask yourself. The answers will help you determine whether you’re ready to start a business.
Why do I want to start a business?
Do you want a lifestyle change? Has it always been your dream to start a business? Is your passion for, say, surfing the catalyst for developing a website devoted to the sport? It’s important to go into business for the right reasons, not simply because you’re sick of your current job. For starters, you need to have expertise in whatever field you choose, as well as business acumen.
What are my strengths and weaknesses?
Before embarking on your own venture, take time to write a list of your strengths and weaknesses. This will give you an idea of what voids need to be filled in order to make your small business a success. And it will also clarify exactly what you would bring to the table as a business owner.
Do I understand the logistics of starting a business?
There’s much more to starting a business than a great idea. Among the areas to consider: the benefits of incorporating, how business taxation works, the process for getting a loan and roughly how much money you’ll need, how many employees you’ll require initially, what you have lined up in the way of suppliers (if applicable), and what steps you’ll take in terms of marketing. Before proceeding, you must come up with a detailed business plan that takes all of these things into account.