Ready to take the plunge?

by Ed Martin on September 14, 2009

Here are some things to consider before you start a business:

 

Money
Have you got enough money to live on while the business is starting? Can you afford to start this business? If not, consider trying your idea as a moonlight business. It isn’t the best idea to jump right into a new venture and hope things will work out.

 

Time
Can your personal like stand starting a new business? Do you have the time to start a new business if it is part-time? Do you have family or other obligations that will come first?


Experience

Can you learn the ropes from someone else before I start? Can you work for someone else doing the same thing and learn about the business from them before striking out on your own? Make your mistakes on someone else’s time. Just remember that their business is as important to them as yours will be to you so don’t screw up too much while learning. If that isn’t possible, at least try talking to people in the same line of business. They are easy to find on-line if not in person.


Fit

Is this business really right for you? Do you have the skills and knowledge to compete with others doing the same thing? Will you really like running this business? Do you have the time to put into it? Will you be able to do or to learn the business side of your business, selling, marketing, accounting, legal work? Sometimes we get carried away with making the product or designing the service and forget about all the hard work that is on the “business” side of proposition.

Research
Have you tested your idea? Big companies spend millions and take years before making big decisions on releasing new products or starting new ventures. They do this for a reason. It is way cheaper and easier to fix a problem in the planning stage than it is after a business goes live. If you’ve got a fatal or even a major flaw in your business idea, you’ll be much better off changing your plan or even finding a new one BEFORE you start your business.

Going Solo
Do you like working by yourself?  Can you motivate yourself? Do you need other people around to stimulate you, to get you going? Not everyone is cut out to go it alone.

The SBA has a nice little online assessment you can take. It deals with lots of the kinds of things you need to consider before starting a business. I really like the quiz from Fortune. It deals more with the mindset you need to take the plunge.

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{ 2 trackbacks }

First Steps to Becoming a Micropreneur: Pt. 1 Do You Have What It Takes to Be a Micropreneur?
September 17, 2009 at 4:10 pm
Eight Things to Consider When Choosing a Business
September 17, 2009 at 9:31 pm

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