Are You Ready?

Do you know who your customers will be and what sets you apart from your competition? Are you prepared to work for over a year without getting a day off? What is your personal credit history?

These are some of the many questions you need to be prepared to answer when deciding whether or not to start a new business. The best way to increase your chance of success is to find out as much as possible BEFORE you start your business. Investing the time to learn what is actually involved in running a business will help you increase your chances of success.

Talk to successful business owners and be sure you have a realistic understanding of the financial, time management, and organizational resources you'll need to be a successful business owner. And rather than focusing on the daunting figures of business failures, use your time to understand the very real demands of operating your own business.

In reviewing your motivation and readiness to start a business, you should evaluate issues including:

  • What has motivated you to start your own business?
  • What personal characteristics do you have that will help you as a business owner?
  • What characteristics do you not possess that are important to the success of your business and how will you address this?
  • Can you describe your product and why a customer would want it?
  • What does the market look like for your product or service?
  • Who will your customers be and how much information do you have about them?
  • What competitors offer similar products?
  • What experience do you have and what experience do you lack?
  • What's your personal financial position?
  • What are projected startup costs?
  • What are projected revenues and sales?

An honest examination of these questions will give you a sense of how prepared you are to start a business. Certain skills and experience are critical to the success of a business. Knowing which skills you possess and which you will need to hire others to provide will be helpful in structuring a successful company.

Next » Preparing a business plan