Sunday, February 15, 2009

Starting a Small Business? Here Are Some Questions You Need to Ask Yourself

For many people, the lure of business ownership can be very strong. Imagine, not having to commute, being your own boss, and having the complete freedom to be able to plan your day and make your own decisions as you see fit.

However, starting your own business is a serious thing, and it's really something that you must think through. Part of this involves asking yourself certain key questions like:

1. If you start your business part-time while keeping your full-time job, how will you find time to devote enough hours to your business? How many hours a day are you going to be able to realistically put in? You're going to have to decide whether you are going to work mornings or evenings, then set up a schedule to follow. Additionally, you're going to have to decide whether you're going to work weekends. If you're holding down a full-time job, there's a good chance that your new enterprise is going to require that you work seven days a week.

2. Where, exactly, are you going to set up your business? Will you designate an area of your bedroom, basement, or garage? And once you find a place where you can be productive and uninterrupted, will there be any negative effects on your neighbors (such as customers coming to the door, parking on the street, and delivery trucks snarling traffic)?

3. Are you willing to put in time and money for your education? Not many businesses start off profitable. It takes time to learn the ropes and find your groove. Do you have enough money to keep you going while you're still finding your legs?

4. What are your marketing plans? Exactly, how are you going to get customers in front of your product or service? Do you have any natural sales ability? What marketing techniques are you going to use to get your name out there?

5. And, lastly; how do you plan on financing your new venture? How much money do you require? How much cash you have on hand? Are you able to borrow from friends or family? Do you have a business plan in order to apply for financing from a bank? What's your credit rating like?

These are all very important questions that you must address before you even think of hanging out your shingle. A good percentage of businesses go under because of poor financial planning on the owner's part. You must be ready for all possibilities and plan accordingly.

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