What to Consider Before Starting Your Own Business[ Edited ]
June 2016 - last edited June 2016 by Brielle B
What to Consider Before Starting Your Own Business
You’re ready to be your own boss, but before you get too carried away with excitement, you should be asking yourself these questions.
Why am I doing this?
Knowing what motivates you is key to starting a business. There are hundreds of different possible answers to this question and you have to find the right answer for you. Is it because you love what you do but don’t want to do it for another company? Do you want to expand existing consulting work you’ve been doing?
Who are my customers?
Defining your ideal customer will shape the entire direction of your business- from marketing, to product creation to location scouting.
Where will my business be located?
You know what they say: “Location, location, location.” This could be anywhere from your living room to that retail space you’ve been eyeing on main street. Do your research and be realistic about your initial needs. Let your business goals, services and ideal customers help you identify what makes the most sense for you.
How much money do I need to get started?
If you’re taking the dive and leaving your full time job, don't forget to factor in living costs in addition to the expenses you'll incur when setting up. Don’t forget about hidden costs such as licensing fees, rental deposits, equipment, and taxes. Experts suggest having at least 12 months worth of living expenses saved up before you start your own business.
Who will help me?
The reality is that you won’t be able to do everything yourself. Regardless of where you are in the planning stages for your business, you’ll need other people on your team, even just as consultants.
How will I handle setbacks?
This could be the most important question to ask. There are lots of ups and downs, and your days could be filled with more disappointments than successes in the beginning. Are you the kind of person that gets discouraged easily? There are no right or wrong answers, but you have to be honest with yourself when answering this question.
Additional Resources: The Small Business Administration has put together 10 easy steps to help you plan, prepare and manage your business.