Ask SCORE April, 2013 - Questions To Ask When Starting A Business
Print
How To Articles
Ask SCORE
After working for more than 25 years in the publishing industry, the company I worked
for downsized and I accepted an attractive buyout package. Now I’d like to start my own
business. What do I do first?
Ask SCORE
After working for more than 25 years in the publishing industry, the company I worked
for downsized and I accepted an attractive buyout package. Now I’d like to start my own
business. What do I do first?
What’s the first thing to do when considering starting a small business? Ask more
questions.
That may seem like a rather flip response, but it’s true. Success in small business hinges
on gathering as much information as possible in order to make sound, informed decisions. That
includes understanding your target market, your resources, and—perhaps most importantly—
yourself.
Entrepreneurship has many rewards, but also many responsibilities. And if you’re not
prepared to handle them, those dreams of being your own boss will almost certainly become reallife nightmares.
So before drafting a business plan, brainstorming catchy company names, or pricing
office space, pose a few hard questions to the person who will literally make or break your
business—you:
Is it the right time for me to start a business? The personal factors that affect the timing of
a start-up can change quite frequently. According to Chicago-based business advisor Carol Roth,
author of The Entrepreneur Equation, “Your finances need to be in order, your responsibilities
should be consistent with the ability to invest time and capital, and you should have the
appropriate experience under your belt.”
Can you handle the economic roller coaster? Long before volatility defined the general
economy, businesses of all sizes experienced both good and bad financial times, a cycle that is
sometimes hard to predict. “You need to get used to variable income versus having a regular
paycheck,” says Rhonda Abrams, USA Today small business columnist and owner of the
Redwood City, California-based The Planning Shop.
Have I taken a hard look at my industry, market, and competition, and revised my idea
accordingly? Abrams adds that the worst entrepreneurs are those who are set in their ways: “You
need to be willing to challenge your own ideas, and have the flexibility to change.” That includes
making a commitment to short- and long-term planning from the outset. “Continually be aware
of things that can affect your business, both threats and opportunities,” Abrams adds.
Is my personality well-suited for entrepreneurship? Entrepreneurship requires taking
risks, being proactive, and riding out the ups and downs. “If you are great at execution, but really
prefer receiving direction on what to do next,” warns Roth, “you may be better suited to work for
someone than to have your own business.”
If your responses have you second-guessing your small business plans, don’t
automatically give up. Roth says that while personal traits may be difficult to alter, “skills can
be developed, changed, enhanced, and even supplemented.
