Last Updated on September 6, 2022 by Treana Wunsch
If you are considering starting a business of your own, I’m sure you’ve often wondered, what are the things I need to do before I start a business?
There are many important things to do before starting a small business. One of the most important is to create a plan but even before you start creating your plan, you need to discover a few things about yourself. In this article, I’ll help you to do just that and more.
Ask yourself these questions before starting a small business.
Am cut out for starting a small business?
You may have the basic skills to start a business but do you have the emotional capacity? When you start and build a small business you will need to confront many of your fears. Fear of rejection. Fear of failure. Fear of success (I know but it’s real).
Having a plan for stress management is key. What things do you do now to keep stress at bay? You’ll need to continue to make time for those things.
Knowing your strengths and weaknesses is one of the most important traits a small business owner can have. Knowing what you don’t know makes it easier to let go of tasks and duties that you’re not so good at and hand them over to someone else. This is particularly helpful when your business is growing.
In my post, Starting a Small Business? 8 Honest Questions to Ask Yourself I go into more detail on how your emotions and personality traits impact your ability to become a successful business owner.
Do I have enough time to start a small business?
Before committing to starting a small business, it’s important to sit down and assess whether or not you have the time to dedicate to such a venture. Running a business can be a huge time commitment, and if you’re already stretched thin with work and other obligations, it may not be the right time for you to start a business.
If you’re serious about your business idea and depending on the type of business it is, I recommend quitting your job and dedicating as much time as you are willing to this venture. Some experts tell you to start it as a part-time side hustle. If you already have extra time on your hands and are looking for something to fill that time, this can work.
However, if you want to replace your full-time income with this business venture, dedicating at least 40 hours per week to it will be your best strategy. If you have the money or can get a loan with operating capital so you can quit your current job, I would go this route. I go into this more later in this post.
When I started my business I had been laid off so I wasn’t working and it was the best thing that could have happened. As you can see, having a high risk tolerance is imperative when starting a small business. The article that I mentioned above goes into this deeper.
Do I have support from your friends and family to start a small business?
Before taking the plunge into small business ownership, it’s important to consider your support system. Do you have a network of friends and family who can help you out if things get tough? Are they likely to be cheering you on and providing moral support?
It’s worth taking some time to think about this because starting a business is a big undertaking. If you don’t have a strong support system in place, it can make the process a lot harder.
But even if you don’t have family or friends who are able to offer practical help, it’s still important to have people who will offer emotional support. When things get tough, it can be helpful to know that there are people in your corner who believe in you and your business.
Do I have or can acquire the funds to start a small business?
There are a few things you should do before starting a business, and one of them is to decide if you have or can acquire the funds to start your small business. Do some research and figure out how much money you’ll need to get your business off the ground. Then, take a close look at your personal finances and see if you have the funds available or if you’ll need to seek out financing options.
If you don’t have the personal funds available, there are still options for financing your small business. You can look into small business loans from banks or other financial institutions, or explore crowdfunding platforms as a way to raise capital. Whatever route you decide to take, be sure to do your homework and figure out what will work best for your new business.
I outline all the ways you can get funding in my article How to Get Funding to Start a Small Business in Canada. Check it out if you want to learn more about how to start a business with little to no money.
Am I willing to write a business plan before starting a small business?
A business plan helps you set goals, track progress, and make important decisions about your business. It can also help you get financing from investors or lenders. If you’re not even willing to write a business plan before starting a small business, your commitment level is too low.
Creating a business plan can seem like a daunting task, but it doesn’t have to be. You can start by doing some research and then outlining your goals and strategies. You can also find templates and software that can help you create a professional-looking plan.
I’ve created a classic Google Doc business plan template with instructions that can be used for any type of business. It’s formatted in a way that banks and investors will approve of. Click here to check it out.
Once you have a plan, take time to review it regularly and make changes as needed. Your business plan should be a living document that evolves as your business grows. Making a plan before starting your business can be the difference between success and failure.
There You Have It
To summarize, these are the five main things you should consider before starting a business. First, ask yourself if you have what it takes to be a successful entrepreneur. Second, make sure you have enough time to devote to your new venture. Third, consider your support system and whether or not you have the resources in place to get started. Fourth, do you have the means to get enough funds? Finally, sit down and write out a business plan.
Once you have addressed these key points, you will be on your way to starting a successful business. Thanks for reading. Let me know what you thought in the comments below!