Points to Consider Before You Start Your Business
Before you open your doors, launch a website, or sign any lease, it helps to step back and look at the big picture. These points apply whether you’re starting a local shop, a service business, a professional practice, or an online business.
Think of this as an overview. You’re not working out every detail yet. You’re checking that you’re ready for what’s coming and that you’re moving in the right direction.
Some points will matter more to you than others, depending on the business you choose. Use this list to get clear, then move on to more detailed planning.
1. Is Owning and Running a Business Right for You?
Wanting your own business and being ready to run one are two different things.
Some people dream of “being the boss,” doing what they love, or making more money. Those can be good reasons, but if you only look at the upside, you’re missing half the picture. You’re trading a steady paycheck and clear boundaries for risk, responsibility, and uncertainty.
Owning a business means:
- You take full responsibility when things go wrong.
- You may work longer hours than you did at your job.
- You deal with problems that land on your desk first.
- Your income may go up, down, or stop for a while.
It can be rewarding and give you freedom, but it’s not a fit for everyone. It’s better to find out now than after you’ve invested time and money.
A quick self-check:
- Are you comfortable with income that isn’t guaranteed?
- Can you handle pressure and still think clearly?
- Are you willing to make tough decisions that affect others?
- Do you take ownership, or do you tend to blame others?
- Are you prepared to keep going when problems show up?
There are pros, cons, and valid reasons for running your own company. Make sure you’re starting for the right reasons and that this path is a good match for you.
For a deeper look, see:
The Reasons for Getting Into Your Own Business
The Pros and Cons of Running a Business
2. Are You Financially Ready to Start?
Many people focus on the business idea and skip this question. That’s risky.
Every new business goes through a ramp-up period. You have money going out before much money comes in. You may go months before you can pay yourself a steady income.
Consider:
- Do you have some savings or backup income while the business gets off the ground?
- Can you cover your personal essentials (housing, food, transportation, basic bills) without depending on the business right away?
- Are you using money you can afford to risk, or money you absolutely need to live on?
- Do you understand your basic startup costs and ongoing monthly expenses?
You don’t need everything figured out on day one, but you do need to be honest with yourself. Starting a business with no financial cushion and no plan puts a lot of pressure on you and the business.
3. Do You Have (or Can You Build) the Skills You Need?
Next, look at your skills. You may know the work, but do you know the business?
There are three main areas you want to think about:
- Industry skills: Do you understand the actual work your business will do? For example, if you’re starting a home repair service, can you do the work safely and correctly or oversee those who do?
- Business skills: These include basic marketing, customer service, pricing, money management, and organizing day-to-day operations.
- Personal skills: Problem solving, communication, leadership, and the ability to stay calm under pressure.
If you don’t have every skill today, that’s okay. You can learn, hire, or outsource. But it’s much better when you understand the key parts of your business instead of depending completely on someone else to take the reins.
Even if you plan to hire a manager, you still want enough knowledge to step in if needed and to judge whether things are being handled properly.
For more, see our resource page: Essential Business Skills You Need To Succeed.
4. Decide What Type of Business You Want to Start
Now let’s look at the kind of business you want.
Choosing a field you’re passionate about is helpful, but passion alone is not enough. You need passion, demand, and a business model that fits your life.
Think about:
- Your interests and strengths: What do you enjoy? What are you good at?
- Customer demand: Are people actually willing to pay for what you want to offer?
- Lifestyle fit: Will this business demand late nights, weekends, physical labor, or travel? Does that work for you and your family?
- Business model:
- Products or services?
- Local, online, or a mix?
- One-time sales or repeat/recurring revenue?
If you pick a business only because it “looks profitable” but you don’t care about the work and there’s little demand, you’ll be frustrated and quick to look for the exit when problems show up.
On the other hand, when you choose a business that fits your interests, strengths, and the market, you’ve given yourself a strong foundation.
For more help finding the right idea, see How To Find a Business That Is a Great Match for You.
5. Should You Start a Business or Buy One?
Another key decision is whether you should start from scratch or buy an existing business.
Both options can work. Each has pros and cons.
Starting from scratch:
- Pros:
- You build your own systems, culture, and brand from day one.
- You’re not stuck fixing someone else’s mistakes.
- You can design the business around your vision and goals.
- Cons:
- It can take time to get your first customers and reach steady income.
- You may go through more trial and error.
- You start with no history or track record.
Buying an existing business:
- Pros:
- The business may already have customers, systems, and staff in place.
- You can see some history of sales and expenses.
- You may start earning sooner if the business is healthy.
- Cons:
- You might be buying hidden problems, such as debts or a bad reputation.
- It can be harder to change the direction or culture of an existing business.
- You usually need more money upfront.
If you’re thinking about buying, proper research (due diligence) is critical. You want to understand the financials, the reasons the owner is selling, major customers, contracts, and any existing issues.
For more on this topic, see Buy a Business or Build One From Scratch.
6. Should You Consider a Franchise?
A franchise is a business where you buy the right to use a proven system, brand, and support from the franchisor. It can be a faster way into business, but it comes with rules and fees.
Some advantages of a franchise:
- A proven business model.
- Training and support from the franchisor.
- Brand recognition and marketing systems that are already in place.
Some disadvantages:
- Franchise fees and ongoing royalties.
- Rules and restrictions on how you operate, what you sell, and how your business looks.
- Less freedom to change products, services, or marketing to match your ideas.
A franchise can increase your chances of success if you follow the system and choose a solid brand in a good location. But it’s still a business. You still carry risk and responsibility, and you still need to manage your finances and operations.
For more, see Here’s What You Need to Know About Owning a Franchise.
7. What to Do Next
Use these points as a starting checklist, not a one-time exercise.
- Go through each section and make honest notes about where you’re ready and where you need more work.
- Talk to people who are already in the type of business you’re considering.
- Strengthen weak areas: build skills, improve your financial position, and get clearer about the type of business you want.
Once you’re more confident about these big-picture decisions, you’ll be in a better position to dive into the practical details like startup costs, licensing, marketing, and daily operations.
The more prepared you are before you start, the better your chances of building a business that fits your life and can grow over time.