Are you contemplating starting your own business? I would recommend that you think long and hard on this before you decide to take that leap. There are several things that you need to look at before you make your final decision.
Let’s look at a few questions that you need to consider before starting.
- What type of business are you looking to start?
- Is there someone in your household that is going to be bringing in some income while you are starting and building your business?
- How are you going to fund this business venture?
- Is your business sustainable?
- What is your expertise in the business?
- What is your business plan?
- Is this something that you are building yourself or with someone?
- Is your spouse in agreement with starting this business?
- Are you setting realistic obtainable goals?
- It takes a business typically 5 years before they see a profit. Are you prepared to work for your business?
- Is your business going to be a sole proprietor or d.b.a, limited liability company or a C Corp. or an S Corporation?
- Are you projecting to hire employees?
- Are you going to need to purchase equipment in order to start your business?
These are just a sampling of some of the questions that you are going to need to consider. Some of the others are: Who is your target market? Is the market/location saturated with this type of business? Who is your competition? Do you have a network of people to work with? What is your marketing plan? Is this a brick & mortar business? Online Business? Service Business? and so on…. This is why I recommend that you really think about whether starting a business is for you. Is this business your passion? Can you retire from your business? Is it a start up that you plan to sell after it is up and running?
What is your business goal?
I never recommend that anyone start a business by going into debt. There needs to be someone in the household that is bringing in an income (typically your spouse unless you are still living at home) and there are times when you need to work while you are starting your business. You should have some reserve funds saved in order to purchase some small equipment items that you may need to start your home office unless you already have these items. (computer, printer, faxing capabilities – yes, some businesses still fax, paper, envelopes, software, etc.) If you cannot produce your bid proposals, marketing materials and invoices for your clients you will have some trouble getting paid. You will need to look at who your clients are going to be and what you are going to need to service them on a budget to start.
I have been in my own business for 30 plus years. I’ve told both of my kids to get a job where you will get a steady paycheck, paid vacations and paid holidays, you can participate in a good 401K and look for either a pension (if they still exist…lol) or some type of retirement. Work for a company that provides services that people need. (utility companies, hospitals, groceries, county or state jobs, federal jobs, housing, etc.) If you work in areas that people need or will be perpetual then it is less likely you will lose your job, or the business will close. This is what I meant when I asked the question earlier “Is your business sustainable?” Is your business a “need” or a “want”?
Did my kids listen to me? Not really….lol they are both in their own businesses. However, there is a spouse bringing in additional income to help get through some of the leaner times.
When I talk about the leaner times, I am talking about living off of receivables. Sometimes it takes months to get paid from your clients. Can you financially survive during the collection process while you are trying to collect what is owed to you and your business. If you are in a seasonal business, you will also need to plan for your leaner months especially if you live in an area that has snow or long winters that affect businesses like landscaping or construction. You need to plan for the various challenges you will face as a business owner.
Have you thought long and hard on starting your own business? Before proceeding with your business. I would recommend that you pray about it. It is important to know if starting your business is God’s plan for your life or is it your plan for your life. If you are questioning whether it is God’s will, then ask someone you know that has a relationship with God to pray for confirmation on whether this is God’s will for you. God will confirm His direction for your life. Especially if you seek Him first. Being in your own business is tough enough. I cannot imagine being in business without God. I would not have made it.