5 questions to ask before starting a small business

Are you really ready to turn your business ideas into reality?

You're not alone if the thought of working for yourself seems like a good option. Not having to answer to anyone else might be particularly appealing. So, too, is dedicating your time to something you are truly passionate about.

But, do you have what it takes? To help find out, you must ask yourself some tough questions. Because, quite simply, starting a small business takes a lot of hard work, skills, people, money and knowledge. But, if you have these things, you're well on the way to turning your business ideas into reality.
 
Here are our top 5 questions to ask yourself before making the decision to start a small business.

1. How am I going to exit the business?
Sure, walking away from your dream job is not something you want to think about right now. But knowing your end goal (or at least thinking about it) at the start is one of the keys to giving you the focus you will need to be successful. Plus, if you understand the financial, legal and operational obligations of exiting, you will have greater peace of mind going into it. Ultimately, every business owner eventually exits their business at some point. And remember, it might not be a case of leaving because your venture hasn't worked out, it could be because it's growing too quickly, or you have the option to sell your business for a profit.

2. Why do I want to go into business for myself?
Before starting a small business try to really understand what's driving you. Perhaps it's the thought of building your own job security, or being responsible for your own finances, holidays and bonus'. Flexibility and improved lifestyle can be other major advantages.

3. What skills do I have to succeed at running a business?
When you're in small business, you might find your skill set multiplies, fast. Not only do you have to be an expert in your chosen field, but you need to be able to manage your finances, lead your team, market and sell your product or service and keep on top of the admin just to name a few important tasks.

4. Is it all about the money?
If you are going into business with the dream of making millions, that's great! Having financial independence is one of the key reasons why people want to start their own small business. But, be sure you are entering into a venture that inspires you and that matches your skill set, first. But if its just for the money we suggest you get a stronger purpose because you will need one when times are tough.

5. Who else do I need to succeed?
In many cases going solo in business is anything but. A financial advisor who is savvy with the options available to small business owners will be one team member worth engaging. Look for someone who not only offers advice about money management, but who can also help write your business plan. A solicitor, business coach, mentor, marketing expert, staff and even a human resources manager are all valuable people to call on as your business grows. Visit our Small Business Resources for more great tips.