People start businesses for lots of reasons, but too often in a weak economy they feel forced to start a small business because they see no other opportunities. Sometimes this works out, but more often it doesn’t, and financial problems are only compounded for the people involved. In these uncertain economic times, it is absolutely critical that people looking to start a business for whatever reason ask themselves the critical question, “Should I or shouldn’t I?”
Until you can truly answer the question, don’t start a business. These key points will help you decide:
Do you have what it takes to be an entrepreneur? Do you have experience in the business area and knowledge on how to operate a business? Are you willing to work all the hours it will take to make the business successful? Are you willing to assume the risk involved?
Cash is king. The majority of business startups are undercapitalized. Cash is the lifeblood of a business, and too many die a slow death from being undercapitalized. Ask yourself, are the needed funds in place to not only start the business, but to keep it going until it is profitable? Are your projections realistic?
Is there a need for your business? Have you accessed the market to determine if there is a demand for your business? Have you taken the time to write a realistic and feasible business plan?
These key points aren’t inclusive, but they will help answer the central question, “Should I or shouldn’t I?” I recommend not starting a business until your answer is an absolute “yes.” If your answer is “no,” it doesn’t mean you’ll never be able to start your own business, it just means all the pieces of the puzzle aren’t in place yet.