Critical to the success of your start-up business is careful pre-planning and visualization of what the business will look like. But before you focus on the business you want to start, take a careful look at (1) your motivations for starting the business, (2) your likes and dislikes , (3) your capacity for hard work and your endurance , and (4) your credit and financial picture .Your Motivations to Start a Business
In a sense, launching a start-up business because you have been laid off from your job and need money may be the worst of motivations, unless it is a lifestyle that you’ve dreamed about and one that is your passion. If you have been laid off or fired from your job and need money, perhaps you should focus all of your attention and energy on finding a new job: hone your resume and job interview skills. As we mention elsewhere, an exception to this rule is the older worker who finds himself or herself in that terrible place of being too young to retire and too old to get hired. If you have sent out hundreds of resumes and you have not gotten a bite, much less a job, definitely consider launching a start-up business.Your Likes and Dislikes When thinking about a start-up business, carefully consider your likes and dislikes, although this can be a tough process. For example, you may be an engineer by profession, but you think you would love to start a landscaping business. Perhaps you have come to hate engineering, but love to get your hands dirty working in the soil, selecting plants, and creating a beautiful environment. It’s really your choice: you could probably get a consulting engineering practice up and running a lot more quickly than a landscaping business. With the money you make from your new consulting business you could buy a larger house and piece of land and then, as a hobbyist, you could landscape to your heart’s desire. If you want to drop engineering for landscaping, you will start the business and struggle to get customers with really no track record to highlight, and you will be competing against companies who have been in the business for a long time. It is a tough nut to crack, but it is your choice. Your Capacity for Hard Work and Your Endurance
A start-up business typically requires hard work, endurance, disappointments, fear and probably any other emotion you can think of. Every now and then someone comes up with a smart idea that clicks overnight. He or she has a unique new product they put on a website, the concept goes viral and their fledgling company is filled with orders. We hope that happens to you. Chances are, it will be a different story. You likely will have a learning curve to climb and setbacks and you will make mistakes, some of them will be costly. But hopefully, you will learn from your mistakes and slowly, surely your business growths and thrives. Getting from point A (launching the start up business) to point B (success at last!) is a rough road. Do you have what it takes? Are you sure?Your Finances or Where the Rubber Meets the Road
All the things mentioned above are nothing compared to your financial and credit condition. Through the last few years of deep recession, many, many good people have been hammered by the economy. They have little or no money and their credit rating is in tatters. If this is your situation, this may not be the best time to start a business. Bankers, prospective vendors, prospective clients and customers will look at your financial records. To borrow money, hard-nosed bankers want to know two things about you: are you the kind of person who will pay them back their money they lend you and in a timely fashion as agreed? The prospective vendor wants to know the same things: will this person pay me for the products or services I deliver and in a timely fashion? The customer wants to know many, many things but a key thing is will this person be able to deliver his or her services as promised?Ask Yourself These Questions
Ask yourself the following questions and answer them as honestly as you can. Then check out other pages in this pre-start-up section for more information on credit, business ideas, and more.