Before Starting Your Own Business

Three Questions To Answer Before Starting Your Own Business

Why do you want to start your own business? Have you done your homework? And, do you have reasonable goals for your future success? Answers to the questions are an excellent beginning, to determine if you are ready to own successful business. Without the answers to these questions, and more, you need to wait and become better informed before you invest your time and money.

For example, you need to explore why you really want to start your own business. Do you have a marvelous service or product that you want to share with the community? Are you hoping to get rich quick? Did you recently lose a job, and you are looking for another source of income, where you can be your own boss?

Do you have a fantastic product or service that consumers will find necessary or totally irresistible; if you think that your marvelous idea will translate into riches within the next year, you obviously have not read too many statistics on starting a new business venture. Even a great idea takes time to develop and sell to consumers. Also, if you have recently lost job security and hope to dig out of financial difficulties by starting your own business, now is probably not a good time. Taking a financial risk, when you are already recovering from a job loss, is just adding more pressure to an already uncertain proposition.

Should you feel you are starting your new business for the right reasons, the next question you need to ask is: Have I done my homework? Before you throw caution to the wind and pull out your wallet, you will have to follow through with marketing information, to determine if the public is likely to share your enthusiasm. Although it is a wonderful plan, your potential clients may still decide it is a luxury they simply cannot afford.

Even if the public seems likely to support your venture, do you have the capital to get set up with a building, advertisement, utilities, office supplies, and more? So, many questions need a workable answer before you can determine whether the potential benefits outweigh the risks.

Now that you have done your homework and decided your business is something consumers will appreciate, do you have a workable business plan? For example, are you expecting profits after the first 90 days? How long can you support your venture, while waiting for monetary gain? Do you have a business plan to avoid unnecessary debt, when the business hits an economical snag?

As you can see, if you ask three important questions, the answers only lead to more questions. What a quandary! However, you definitely need to get as many answers as possible, before starting a new business. The more answers you have now, the fewer questions that crop up later after you have already invested your hard-earned money and countless hours of labor. In the end, getting the answers first will give your new business a fighting chance of success.

By Paul Sutherland

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