With the new year, comes urgings to do new things!  So, this month we are talking about things to think about when starting a business.  Here are five things to think about if you are thinking of starting a business:

  1. Do you have the dedication to work long hours?  Starting a business takes time.  Even if you are lucky enough to eventually make money only working a few hours a week, that will probably only happen years, if not decades, after starting your business.  You need to be willing, and ready, to work 60 to 90 hour weeks for the first few years.
  2. Have you found a business you are excited about?  As said above, you are going to be working a ton of hours.  Your business will require weekends, nights, and holidays.  Make sure your business is something that you love because it will become your life.
  3. Can you fund your business?  Many people have an idea but they don’t have the funds to start a business.  Starting a business takes time, effort, and most importantly money.  Most businesses are not profitable the first year so you will need money to both fund the business and fund your own personal needs.  Even if you are going to seek loans and investors, they will want you to have skin in the game.
  4. Do you have good credit?  Good credit is a must when you start a business.  At some point you are going to want to get a business credit card, a line of credit, or a loan.  Even if you don’t see needing these, you many want to take credit cards, rent equipment or a building, or lease a car.  Your credit rating will affect what you can do and how much it will cost you to do it in the financial and business worlds.
  5. Are you going to go into business by yourself or with others?  If you are going into business with others, or thinking about, make sure to check back next week for the blog post things to think about when going into business with others.  It is one of the most important decisions you can make – maybe even more so than who you marry!