So, you want to start your own business. You have visions of being your own boss, setting your own hours, becoming crazy successful, and retiring at an early age. You daydream about opening the doors to your business and watching the people, and the money, pour in. But are you really ready to start a new business?
Answer some critical questions. Potential business owners need to stop daydreaming, put their feet on the ground, and start asking themselves some very important questions before taking that critical leap to starting your own business. The SBA has a great list of questions to ask yourself before starting a business to determine whether or not you have what it takes. - Know your initial costs. You have a business idea, but aren’t sure how much money you need to get your plan in motion. How can you make sure you are being realistic about your startup costs? Check out the other costs involved in a new business to ensure that you are properly prepared. The last thing you want is to be just shy of product launch and find yourself out of money. There are a bunch of free calculators available to help you assess what your startup costs should be. One in particular is the Starting Costs Estimator offered on the SME Toolkit site.
- Build a startup checklist. You have probably written a few grocery lists in your lifetime, but have you created a to-do list for your business? Lists are great in so many ways: they make life less stressful, create a sense of urgency and accomplishment, and help to visualize the best order of items. Sure, some people are naturally list makers. But if you want to own and operate a business for yourself, it is a good idea to get organized now. Check out this downloadable checklist that will help you focus on important items related to starting your business.
- Understand the basics of accounting. No one is going to care about your business as much as you do. Even if math has never been your forte, it is still a good idea to at least understand the basics of accounting. This way, if you pay someone else to handle this part of your business, you can read and understand the financial documents. The Entrepreneur Accounting site does a good job of providing simple explanations of accounting terminology and how to read the basic parts of a financial statement.
- Write your business plan. You are accustomed to the idea of having a resume when you are in the job market. A business plan is simply a resume for your business. It is created to explain and illustrate the vision you have for your business. Writing one may seem daunting, but by following a few easy steps, you will be on your way to demonstrating on paper the ideas you have in your head. Don’t know where to start? Get motivated with 10 Painless Steps to Starting and Finishing Your Business Plan from BizPlanIt. Do you have the motivation but you need a template? Score has several business plan templates, including this one geared toward startups.
If, after using these resources, you decide that you are ready to make some big decisions, work hard, and make some (worthwhile) sacrifices, register on IdeaCrossing.org to find other advice, tools, and resources you could use to further your business idea.
Tiffan Clark is the Vice President of IdeaCrossing, a free online community created by JumpStart, which connects entrepreneurs with the capital, mentors and technical resources necessary to grow their businesses. Tiffan has worked at several venture-backed startup technology companies and strategic marketing agencies in both Boston and Cleveland.