Four Things to Consider Before Starting a Business
More and more working-age Americans are looking to take control of their worklife by launching their own business. Going out on your own is a big change and even bigger commitment. Before you take the plunge, think through the following:
1. Lifestyle Priorities
Working for yourself usually means sacrificing your time, cash, and energy for the foreseeable future. But that is not always the case! In fact, if your reasons for starting your own business are autonomy and flexibility in your schedule, there are plenty of viable business ideas that can meet those objectives. The trade-off is that you may not get rich, ever, but you can find yourself with plenty of time to enjoy hobbies or family or whatever else you would rather spend your time on. If you are willing to work 60+ hours per week on a regular basis, be sure the industry you choose will hold your attention and interest…there is nothing worse than being stuck in a job you can’t stand, even if you created that job yourself.
2. Money
For most entrepreneurs, money is the bottom line. They want to make more and keep more, or they don’t have any available to get their business off the ground. First, you do need money to make money. There are a million ways to bootstrap a startup that will keep a tight lid on expenses, but there are still expenses. You need at least a few thousand on hand, no matter what type of business you start — more if you will need inventory or a commercial location or employees or….whatever.
Second, you need to know the bare minimum income you are willing to survive on, and for how long, before you pick a business idea. Very few business opportunities produce an immediate, high-end income, and those that do are most effective when the entrepreneur is already an expert in the industry (thus, you would already know the type of business you want to start and have a good idea of how the numbers should look). Set high income goals for yourself, but prepare for realistically taking some time to reach them.
3. Knowledge and Skills
Do not underestimate the importance of knowing the basics of business in general and your industry in particular. All the passion and motivation in the world doesn’t replace the fundamentals. In addition, it is important to choose a business idea that fits your personal work style — if you prefer to be around people, do not choose a business that leaves you stuck behind a computer all day. Evaluate your previous education, skills, and experience to identify areas that are lacking, and seek out products or opportunities to build those fundamentals.
4. Business Ideas
Take the time to look in to several business ideas before jumping in. Check out the competition, and remember that the existence of competitors does not necessarily mean that your great idea is off limits because it’s already taken. In fact, similar businesses that are doing well are an indication that there is a market for your idea. Be flexible with your options. Let the research you conduct guide your final business ideas — the most successful startups are often very different from the original idea. And, considering multiple opportunities will allow you to choose the one that best fits your own lifestyle priorities.
These four areas are really just the beginning, but it is essential to think through what it means to go out on your own before committing any time, cash, or effort. Be realistic about how much you are willing to compromise and sacrifice to reach your goals. If you find that your initial business ideas won’t fit your desires or resources, keep looking! There are thousands (at least) of viable business ideas out there, and you will find the best one for you.
About the Author
K. MacKillop, a serial entrepreneur with a J.D. from Duke University, is co-founder of LaunchX and authors a blog focused on starting a business. The LaunchX System for Business Startup is a complete kit that helps you consider your lifestyle, money, knowledge & skills, and ideas as you plan to start a business. Visit LaunchX.com and let us help you start a business successfully today.
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