Moving from idea to reality is hard work. If you’re ready to give in to your inner entrepreneur, make sure you examine these things to consider before starting a business.
Going From Passion to Profit
Starting and running a business takes commitment. It’s easier to commit if you passionately believe in what you are doing. Passion, however, is not enough, as every starving artist can testify. You must make a business plan that gets you from passion to profit. Eager entrepreneurs spend a lot of time hyping their innovative idea, but unless you can map out a practical course to bring the idea to reality, your success will remain in your head.
Don’t Go It Alone
Entrepreneurial expertise is available all around you. Don’t ignore it. Find a mentor and read entrepreneur websites and online magazines about starting and running a business. If you’re not great with data and market research, find a partner who is and do it before you invest your heart and soul in an idea that just won’t sell.
The Legal Stuff
Would your business be legal in your planned location? What kind of structure for your business do you anticipate? How will it be taxed? Your state and local laws will govern whether you need a license; if you must register your business with the state, city, or county; whether you can use the name you plan to use for your business; what kinds of business structures are available to you; and how you’ll pay taxes on your business income.
Choosing a structure, like a sole proprietorship, limited liability corporation, or partnership affects how much risk you take on for your business and personally, which also raises the issue of insurance. If you find this kind of thing dizzying, it’s time to call your childhood buddy who grew up to be a lawyer and get some recommendations for business attorneys and business insurance brokers.
How You Will Exit
Tales of tech entrepreneurs solving a problem quickly, securing massive financing, and selling for billions dance in the heads of many would-be start-up CEOs. More likely, you’ll invest years building a business to profitability and growth. The time will come, sooner or later, when you will want to make your exit. Develop an exit plan, even if you’re years from letting go. Think about whether you will sell to another entrepreneur, to your employees, or to another business that will absorb what you have built and incorporate it into their own enterprise. Learn about professional business brokers and how they can help when the time comes.If your passion for your idea makes you want to dive into all these things to consider before starting a business and check them off your to-do list, you might become a successful business owner.