What to Consider Before Starting a Business

Becoming an entrepreneur is like running a marathon and before you start, there are a few things you must consider.

By: Tatiana Cortes

We’re not talking about strategies, marketing ideas, partnerships, legalities, etc. this will come later. We’re talking about the essential factors to think about before opening a new business – In a broad spectrum.

So what should you consider before you start your business?

Passion

One of the most important factors when considering what kind of small-business you want to embark on. Passion is the thing that keeps entrepreneurs going through hard times. If you really believe in what you’re doing and the project you’re developing, passion will make you more resilient and determined when obstacles come your way. It will make you more effective and motivated, which will translate to your goals being accomplished. Of course, there are other critical factors that should be combined with passion to set you on the path to small business success: planning, setting goals, having knowledge, skill, commitment and a support network.

Money

Having a business idea is one thing, possessing the base-capital to get it off the ground is another! Small or medium scale businesses rely on personal savings, credit cards, family, relatives, and friends for the initial capital to start. Some business owners will continue to run debt on their credit cards believing they will get their business off the ground soon and recoup their investment – Be careful the grass is not always green on the other side. These traditional means of funding will become inadequate with the growth of your business and you will have to resort to capital loans or funding. Banks will only give out a loan based on your business plan and the prospects of your business.

Time

As we all know “Time is of the essence,” so you should consider how much time you’re willing to dedicate to your business. As an entrepreneur, you most likely are juggling more than one thing, therefore considering time is very important. Making sure you have the time to dedicate to your new business and to know that it’s going to be sufficient for your business to be successful. A time management strategy, making a schedule and being disciplined about it are things to consider.

Knowledge

To succeed in a business, you have to know a lot about the business. You are not the first to come up with that very idea, among 7 million people on earth someone must have thought it up. The reason why no one has executed it is lack of knowledge. Success is never measured by ideas, but by the ability and capacity to execute them successfully – Knowledge.

Skill

Take inventory of what you’re good at and look for opportunities that match those skills. Instead of reinventing the wheel with a business in a totally foreign industry, start with – What do you already know how to do? Your answer might involve a hobby or passion, skills from previous job, your college major, or a particular natural talent.