How to Decide Whether to Go Into Business for Yourself

If you want to satisfy your entrepreneurial urge, try owning a small business - but first consider whether your finances, personality and skills are up to the challenge.

Difficulty: Moderate

Instructions

Things You'll Need:

• Fax Machines
• Printers
• Business Magazines
• Computers
• Spreadsheet Softwares
• Word-processing Software

1. Think about whether you want to work for yourself. Do you enjoy being the boss? Or do you feel more comfortable reporting to someone else?

2. Determine how much of a risk taker you are. You must be willing to be patient and give the business enough time to get established and grow.

3. Consider how much time and effort goes into running a small business. Many entrepreneurs work harder for themselves than they ever have for a former employer.

4. Find a business that suits you. Assess your skills, interests and personal values and seek a business that is in line with these attributes.

5. Decide whether you want to start a business or buy an existing one. Launching a business may involve fewer start-up costs and can proceed more slowly, but the business will take time to get established. An existing business usually requires more money up front.

6. Have enough money in the bank to get started. You'll need enough funds to pay for your everyday living expenses while sustaining the business until it turns a profit. Count on a minimum of three to six months.

Tips & Warnings

• Talk to other entrepreneurs to get a perspective on what owning a small business entails.
• Join a trade association, such as the National Association of Women Business Owners or the National Federation of Independent Business, for support information about issues facing small-business owners.
• Visit your local U.S. Small Business Administration office or visit its Web site to learn about government loan programs and low-cost resources to help you get your business started.

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[lucyyy]

on 5/3/2009 I agree with Anonymous -- everyone loves a startup and you'll be surprised at the people who come out of the woodwork eager to help you get your company off the ground. A great tool for deciding what sort of business is right for you is the Vision workbook from startercards.com.

on 8/8/2006 A quick and objective way to decide whether you're ready to start a business is to take an online evaluation.

on 11/22/2005 Begin by having someone you trust help you - like a family member or close friend. Speak with an attorney and try to establish a name and corporation. Open a corporate account. It'll be beneficial in the long run with taxes. Keep records of all expenses.

on 11/22/2005 When you have a great idea and put in lots of time and effort, you'll be amazed how many of the talented members of your family and friends will help you out with their expertise - and usually for no charge!