Questions to Ask Yourself Before Starting a Business

It’s easier to avoid mistakes than to correct them. If you’re starting a business, here are some points to review before wasting time, money, and sanity.

Probably everyone who reads this has heard the dream – being your own boss, working on your own terms, making the big bucks for yourself rather than for your bosses. It all sounds so easy, but if it really was, everyone would be doing it. The reality, however, is that half of businesses fail within the first year, and a whopping 95% fail within 5 years.

This is in no way meant to discourage you from starting a business – only to remind you that there are some things to consider and keep in mind to give you the best chance at success. Most of the reasons small businesses fail are really very simple and easily avoidable. Number one is that same lack of planning and research being discussed here. So without further ado, here are the basic questions you should ask yourself to save you trouble in the long run.

1.What are your reasons for wanting to start a business?

If you're doing it for the money, you're better off sticking to a desk job. If you don't have passion for what you're doing, you'll likely fail.

2.Do you actually have what it takes?

Entrepreneur lists these seven traits as the most important for business owners: tenacity, passion, tolerance of ambiguity, vision, self-belief, flexibility, and rule breaking. Read up on these, and see if you have what it takes or if you can at least find people with the traits you need to help out.

3.Does anyone actually need or want what you plan to provide?

Two parts to this one: is there really a need for it, and can you actually provide it? Even if you answer yes, can you provide it better than others already doing so?

4.Where will you get the money?

Hint: plan for at least 18 months before you start seeing any profit.

5.Can your relationships take it?

Running a business will almost surely take up all your waking hours. You won't have much time for family, friends, even yourself. Setting limits is important, but it's unavoidable that your business will eat up your time for anything else.

Making sure you cover these concerns will put you in a better position to run a business. Know what you're getting into to prevent disastrous results. Plan, organize, get the right people to help, and you can avoid being just another statistic.