Deciding to start your own business is a huge step that should not be taken lightly. You need to determine if you are ready to start your own business and refine your business idea. Here are some questions to ask yourself as you debate whether to start your own business and evaluate your business idea:

What are the pros and cons of starting a business?

SBDC Quick Tip: Take some time to reflect on your motivation for launching a new business. As you work through the planning process, make sure that your “why”  is being considered and included in your plans. Is it control of your schedule? A bigger paycheck? Filling a need in your community? If you don’t build these goals into your plans today, you may not be able to meet them when you’re busy running your business.

Do I have the skill set to run my own business?

Running a business is hard and filled with a lot of responsibilities that the typical employee will never face. Check out this article from the Small Business Administration on the characteristics and skills required to be a successful entrepreneur.

Is my idea a good idea?

Typically, we want to think our ideas are the best because they are based on past experiences and framed by our personal worldview. However, when it comes to running a business, the customer ultimately decides whether your idea is good, bad, or somewhere in between. If your customer does not like what you offer, they will not buy it. Thus, you need to know as much as you possibly can about what your customers want and need. Learning more about your customers is called customer discovery.

How clear is my path to my first sale?

The answer to this question depends entirely on your product market fit. Product market fit means that your product or service is aligned with your target customer’s needs. During the customer discovery process, you learn what the customer thinks about your product or service. You then use this information to align your product or service with your customer’s desires. Ultimately, the more willing your customer is to buy your product or service, the more likely you are to make a sale. When you can find the factor(s) that convince someone to buy, you have found the right product or service for the right audience, allowing you to make your first sales! 

Should I buy an existing business?

While it may be cheaper to start a new business, it also comes with a higher risk of failure. A new business does not have a customer base, defined brand, positive testimonials, or battle scars to prove their idea is a “winner.” Buying an existing business will likely come with a loyal customer base that recognizes its brand and can give you feedback on what to change or keep the same. If you are considering the purchase of an existing business, check out some of our partners who can help you assess the value of the business.

Should I buy into a franchise?

Similar to buying an existing business, a franchise has an existing customer base and brand recognition that you can use to get your business running immediately. The entry price and ongoing royalties may be more than a similar-in-size existing business, but the franchise typically provides a proven business model and additional operating and marketing support.

Should I take over a family business?

While you may not think of it at first, you can make an offer to buy a multi-generational family business. Typically in family run businesses, family drama or issues may hinder their performance or change perceptions among their customer base. For example, a customer may say, “I liked when Steve, the dad, ran the business, but now his son, Kevin, is in charge, and the business is not the same.” If you take over a family business, you would not necessarily have any direct involvement with family issues, allowing you to move forward without that baggage.

Should I find a business partner?

Yes and no. This answer depends entirely on your business, situation, personality, and future plans. Sometimes it makes sense to work alone, such as if you run a handyman service, only work for a handful of clients, or you just do not like working with others. However, your vision for your company may be much larger than it is now. If you will eventually need help, it may be better to start with help now rather than waiting to find one later.

If you decide to find a business partner, find someone with a skill set complimentary to yours. For instance, if you are really good at creating handmade products for your online website but have no clue how to build and run the website, find a business partner with those technical skills. In other words, find someone whose skills are complementary to yours.

Should I have a counselor or mentor?

No matter where you are in the process of starting your business, it is always wise to learn from others! Advice or input from a business counselor or mentor can help you avoid common mistakes, especially if they have already ventured down a path similar to yours. Start finding one by looking inside your current network and working outwards. Then, consider meeting with free mentoring organizations listed in our Resource Navigator, such as SCORE and Small Business Development Centers, to work through your ideas and plans. Unfortunately, advice is not always free. A counselor or mentor may charge you for the guidance they provide, but it can payout heavily in the future.

Are there any shortcuts to building a successful business?

Ultimately, no. Building a business requires dedication, hard work, and believing in oneself. The more you learn about your industry and customers, the more chances you have for success.

What if my business fails?

The fear of failure can seem scary, and overcoming this fear is easier said than done. However, you need to feel confident that you and your business idea have what it takes to succeed. As the famous saying goes, “If you think you can, you can. If you think you can’t, you can’t. Either way, you are right.” Believe in yourself, your business idea, and your goals and we cannot wait to see how far you will go!