Last Updated on March 15, 2024 by Treana Wunsch
If you want to start a business this is what you’ll need to consider beforehand.
Writing a business plan is one of the most important steps many people overlook. Yet, there are other things to consider before getting to that point. Developing the proper mindset and a thick skin are the two most important.
Here are 5 questions to ask yourself before starting a small business. Many people overlook these.
Every Tuesday morning I’ll share straightforward advice about building a successful business.
Do I have what it takes to start a business?
You may have the basic hard skills to start a business but do you have the important soft skills? When you start and build a small business you must confront many fears. Fear of rejection. Fear of failure. Fear of success (Yes, this is real).
Having a plan for stress management is key. What things do you do now to keep stress at bay? Meditate? Exercise? Eat healthy? Get enough sleep? It’ll be even more important to keep these habits when you start a business. Burnout is real and taking care of yourself is the best way to mitigate it.
Starting a business can relieve the stress of bad bosses. It also brings a different kind of freedom to your life. But it comes with a whole new set of stressors. So, you’ll need to develop a stress management system if you don’t have one.
Knowing your strengths and weaknesses is important as a small business owner. Knowing what you don’t know makes it easy to delegate. This also enables you to hire for the right roles. This is particularly helpful when your business is growing. Discover your ‘reason for being’ by taking the free Ikigai test.
Mitigating risk and adapting to change are critical traits for a business owner. Owning a business is a challenging endeavour. Knowing the threats and pivoting based on those threats is invaluable.
RELATED POST: Starting a Small Business? 8 Honest Questions to Ask Yourself
I’m grateful I took an entrepreneurship course before starting my business. They taught me many of these aspects and it was truly valuable. If you don’t have the benefit of this, do your research and get these out of the way before moving forward.
Do I have enough time to start a small business?
Assessing whether you have the time to start a business is a key step. Running a business is a huge time commitment. If you’re already stretched thin with other obligations, it may not be the right time to start a business. Don’t start a business to work fewer hours.
If you’re serious about your business, dedicate as much time as possible to building it. Unfortunately, this is the best-case scenario and not always possible. Yet, by writing a solid business plan, you can raise the funds needed for working capital. 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.
Working at least 40 hours weekly on the business is the best strategy. If you have the money or can get a loan with operating capital so you can quit your current job, go this route. I go into this more later in this post.
When I started my business I wasn’t working and it was the best thing that could have happened. It allowed me to focus on building the business. As you can see, having a high-risk tolerance is imperative when starting a small business.
RELATED ARTICLE: Starting a Small Business? 8 Honest Questions to Ask Yourself.
Do I have support from your friends and family to start a small business?
Before starting a business, it’s important to consider your support system. Do you have a network of friends and family who can help you if things get tough? Are they likely to be cheering you on and providing moral support? Having an unsupportive partner can make or break the business.
It’s worth taking stock in this area because starting a business is a big undertaking. If you don’t have a strong support system, it can make the process difficult if not impossible.
It’s important to have people who will offer emotional support if you don’t have family or friends who can. It is a relief to have this in place when things become challenging. It’s not a matter of if challenges arise, it’s a matter of when.
I’ve been lucky to have great friends and family to lean on in challenging times. Knowing you’re not alone in this journey makes all the difference. You also must learn to ask for help. This is something I still struggle with.
Do I have or can acquire the funds to start a small business?
Before starting a business you must decide if you have or can get the funds. Research how much money you’ll need to launch your business. You will need this information when writing your business plan anyway.
Then, scrutinize your finances to see if you have the funds available. If not, you’ll need to seek out financing options. There are many financing options available if you can’t fund it.
Funding options include business loans, crowdfunding, private investors and family and friends. Do your homework and determine 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.
When I applied for funding to start my business I borrowed too much. It caused financial issues at the start of my business. I’ll save the details for another post. Don’t make this mistake. Only borrow what you need and what you can pay back.
Am I willing to write a business plan before starting a small business?
A business plan helps you set goals and make important decisions about your business. It can also help you get financing from investors or lenders. Your commitment level is too low if you’re not willing to write a business plan.
Not to mention, 1 minute of planning saves 10 minutes of doing. Winging it will take more time and money in the long run. Many people fear writing a business plan because it might question its viability. But, it’s better to know before spending time and money.
Creating a business plan can seem daunting, but it doesn’t have to be. You can start by researching and outlining your goals and strategies. There are templates and software that can help you create a professional-looking plan.
I’ve created a classic Google Doc business plan template with instructions. You can use it for any 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, review it quarterly. 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!
