Hard assessments necessary before starting a business

Starting a business can be a confusing maze of options, regulations and road blocks. While some may roll out of bed and decide to go into business, there are steps to take to ensure the business starts off with a solid foundation.

There are four major steps to consider before opening a business.

1. Ask yourself and your business idea if it is ready to open. Take a self assessment test to see if you are ready to open an entrepreneurial business. You can find a good self assessment at Energizing Entrepreneurs.

In addition to the self assessment, do a personal financial assessment. Do you have at least three to six months of savings to support yourself? Have you reviewed your credit rating lately? Do you have any bad marks on your credit to clear up?

2. Focus on conducting a business feasibility evaluation. By asking a few questions about your business, you will see if the idea can support you. Start by asking the following:
Do you have enough money to open this business without incurring any further debts? If not, can you invest at least 20% of the cost into the business?

Can the business generate enough sales to support the business expenses as well as generate enough profits to support your financial needs?
Do you like the work enough to spend 60 or more hours a week working?
Do you have enough confidence and self-esteem to lead a company?
Did you research your market/customer base?
Are you prepared for the worst in your business?

3. The next step focuses on business planning. While many individuals want to rush into business, taking the time to put your thoughts and ideas onto paper not only allows you to see the weaknesses in your plan, but gives you time to reverse those weaknesses into strengths. Writing a business plan mitigates some of the risk that is involved with opening a new business, and you can find a good business plan template at www.score.org.

4. The last step in preparing to start a business is actually opening the doors. In this phase, you will do a lot of foot work and making a lot of decisions. You’ll need to make a list of everything that you will need before opening day. From a business location to paper clips, there are a lot of details that need to be addressed. Also, start focusing on your marketing to start attracting customers.

The adventure is just beginning when you open your doors; continue to get help and guidance for your business after you have opened. Find outside mentors or business advisors to help you navigate the often complex or confusing path of being an entrepreneur.