9 Things to Think About BEFORE You Start a Business

An Original Article from Allfinancialmatters.com

The economy stinks right now. Lots of people are losing their jobs. If you are one of them, should you start your own business? Only you can make that decision.

That said, today’s Houston Chronicle offered 9 tips for starting your own business (sorry, no link for these tips) that I would like to share with you (along with my thoughts on each one). All of these are awesome tips.

1. Identify your talents.

What are you good at? Don’t know? Ask your friends and family? Take some self-assessment tests.

2. Consult with colleagues.

BE CAREFUL with this one. If you have a good idea, you might be picky with who you share it with.

3. Research, research, and more research.

Before you jump off the deep end, make sure you know how deep it is.

4. Know your money.

Better have some up-to-date financial statements. A budget and net worth statement will help you get a good idea of where you are starting from.

5. Know yourself.

In my opinion, this goes with the first tip.

6. Keep records.

Make record-keeping a habit. You’ll need them for taxes and other financial decisions.

7. Talk about lifestyle changes.

Before you take the plunge, make sure everyone in your family is on the same page. Nobody likes nasty surprises. Everyone in the family needs to know in advance what the outcome could be and the sacrifices that may be required.

8. Find necessary resources.

Financing? Employees? Equipment? Suppliers? Where are you going to get the necessary resources?

9. Write down why you decided to become an entrepreneur before you start a business.

This one made me laugh when I read it but it is SO TRUE! It’s kind of like the investment policy statement that you should refer back to when times are tough. Writing down why you are doing what you are doing will help you get through the hard times and help you stay focused during the good times.

According to the Chronicle article, these tips were provided by Score.org.

Click here to view the original article.

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