Taking the plunge into starting your own business is an exciting – and often overwhelming – time for entrepreneurs. The current economy can be intimidating which is why it is important to consider certain factors in your decision making process. While this isn’t a complete list, our purpose is to get you thinking.
In our blog post Why Start Your Own Business we shared questions and ideas and wanted to provide additional considerations for starting your own business.
- Full time or Part Time Venture: How much time and money can you afford for this venture? The excitement of opportunity often clouds our vision of reality. We may want to tell our boss in corporate American that we want to quit. The reality is that we need the income while we are building a business. Your own business more than likely doesn’t come with a full benefits package. Take a close look at income, savings and costs of starting a business before you send the resignation letter.
- Know Your Why: Are you starting a business to change the world or get rich or both? It sounds like a great idea isn’t a reason to start a business. Reflect on what you want from owning your own business. The reality is that it takes time and money. There are no days off especially when you’re first getting started. Make sure your why is worth the sacrifice.
- Start-up capital: Understand the cost of starting a business. Whether you’re starting from scratch on your own idea or buying a franchise it’s important to explore all of the factors contributing to the bottom line.
- Own or Franchise: Consider the specifics of owning a franchise such as the obligations monetary and otherwise to the parent company. The benefit of their learning could reap you rewards faster than going it on your own.
- Understand your Strengths: Consider taking any number of personality profiles to determine if you have the mindset to be an entrepreneur. It’s not an easy course but the benefits can be endless! If you like a steady paycheck entrepreneurship may not be right for you.
- Many Hats: Part of being a business owner is that you are all departments that you see in corporations. You are sales, marketing, accounting, mergers & acquisitions, receptionist, administrative assistant and more. Are you ready to handle all of those roles? There will be days when you wear all of those hats.
- Other financial considerations such as the impact of employees on taxes and insurance: Having a business means the possibility of hiring employees. There are tax and insurance implications not only for you to own a business but for your employees. Talk to a tax accountant to learn more.
- Talk to other entrepreneurs: Your best resource could be talking to other business owners as you make your decision. Not only can they provide an insider’s perspective, they may be able to act as advisors or consultants in areas in which you are not as strong or knowledgeable.
Making the decision to be a business owner is an exciting time! We’re here to help you along the way.