Many people dream of starting their own companies because they imagine that it will mean more freedom and more money. While this can be true, companies can also be a lot of work – and a lot of risk. If you have a great idea for your business, ask yourself these questions first.
-How much money do I need to invest to start? Most businesses need some money to get started. You may need office space, for example, or products to sell. Consider how much money you would need to get started and consider where you might get this money. Lenders are often reluctant to give new businesses loans, especially unsecured loans. Consider how you might start your business while keeping start-up costs low.
-How excited am I about this idea? Keep in mind that at the start of your company you may have to invest much more than an average work week into your company to get it off the ground. Do you love your idea so much that you are willing to spend this time on it? Will you still be as enthusiastic a few months or years down the line? Your business will need you then, too. Are you excited about the business itself or just about making more money? There are probably easier ways to increase your income.
-Have I done my homework? Do you know how much your business can reasonably expect to earn? Have you researched your competition? Do you know how to set up your business and make it a success? You should not start any business until you have the information you need to make it a hit.…