by Elise Brown
Before you jump into a business you know nothing about, you should ask yourself a few business questions to make sure you are making the right decision.
1. Is there a demand for your product or service ?
You have to think about who is going to buy your products or services before you even think about writing a business plan. You might have a great idea for another area, but are there going to be many potential customers in your area? As an example, let’s consider the possibility of opening a drive in theater. This might seem like a great idea at first. There are plenty of people who love to go to the movies, and there are many others who see a drive in movie as an experience everyone should have. On the other hand, you have to consider the fact that drive in theaters are closing around the country. If you are in an area where cold or rainy weather conditions will make your business difficult or seasonal, you may not be able to turn a profit on this business in that area. Also, these businesses are closing for a reason. Are you going to be able to attract enough customers to make this business worthwhile? Do some research, conduct some surveys, and make sure you are making the right decision before you go looking for investors.
2. Are you willing to work odd hours ?
Entrepreneurs usually work odd hours no matter what industry they are in. Are you going to be able to spend this time away from your friends and family to make sure your business is successful? Not only are your hours going to be odd, but they will also be long.
Starting a business takes a lot more work than most people realize, so be prepared to spend more time working than trying to maintain your personal life.
Also, you will want to make sure the people supporting you are in this for the long haul. You will need people to complement, praise, and support you as well as others to play the devil’s advocate. Your support system is just as important as your business plan, so they need to be on board as well.
3. Are you financially stable ?
The worst thing you can do for yourself and your business is start with poor finances and financial habits. When you go to look for investors or take out a loan, the lender is going to want to look at your personal credit score because your business hasn’t had a chance to build a credit score of its own. If your personal credit isn’t great, it’s very likely that you won’t get the money you need to continue. Also, if you already have poor financial habits, it will be difficult for you to build good business credit for your business. Learn the right way to handle money before you begin to avoid these problems with your new business.