A business decision

As part of deciding whether it’s time to go into business for yourself, you’ll want to evaluate your reasons, analyze your strengths and be honest about the potential challenges you face. You might start by asking yourself some hard questions about:

Your reasons: Your motivation to start a business may depend on any number of factors, such as a drive for personal fulfillment, a need for greater financial and personal independence or simply a perceived niche in the business world that you think you can fill. Fully understanding and acknowledging your motivation can be important as you evaluate your potential for success in your business.

Your professional background: Where you’re coming from when you start your business has a big impact on the experience you’ll have. For example, if you’re a lawyer giving up your career to start a bakery, you’ll face a different learning curve than a former pastry chef. As a lawyer, you may be familiar with the legal aspects of running a bakery but new to the actual business of baking. As a pastry chef, you may be forced to learn some legal and business tasks, while turning out delicious desserts might be second nature.

Your time and financial commitment: What you bring to the table in terms of your time and money will determine a lot about your business. If you’re a stay-at-home mom sandwiching your small business in among playdates and field trips, you have a much different approach than someone who can devote 60 hours per week to a business and is willing to sacrifice her personal life. Likewise, if you have a million dollars in outside capital to invest, you’re in a much different situation than someone financing a new business with personal savings.

Your concept: Where did you get your idea? You may be basing your business concept on the fact that four baseball card stores have opened in your town and you think there’s an obvious trend here and room for one more. Or you may have a completely new idea and business concept, and you will be positioning your business on the fact that it’s totally different and unique. Both concepts might succeed, but the one you choose will determine how you create and manage your business.

The federal government’s Small Business Administration (SBA) is a great resource for reading about starting, managing and financing your small businesses. Check its website at www.sba.gov. You can also find valuable information on loans and other services that may be available to you.