So your friends are saying:

Wow, you made the jump! Congratulations! So excited for you! You are an inspiration! I am so jealous! You are going to be great!

And your family is saying:

Are you crazy? So many others have failed! You have a family to support! I am concerned for you. You are dreaming!

Of course, we must be talking about you quitting your job to start your own business!

As you start down the path of entrepreneurship, before you start ordering your office furniture and business cards, here are a few questions you should answer about you and your new business:

1. Now, what is your business exactly? If it is a retail store, what are you going to be selling? Will it sell high-end or low-cost items? Who is your target audience? If it is going to a consulting business, what are the areas you will consulting? Technical project management? Quality control? Marketing? Who will be your clients? Individuals? Businesses? What size or type of businesses? The trick is to be not so narrow in focus that you have almost no market and not to be so broad that people do not know what you do.
   


2. Do you know what you need to know? You may be an expert in your field, but are you an expert in starting a business? Educate yourself. Sign up for entrepreneurship or small business classes at your local adult education centers, check out www.cweonline.org for the Massachusetts residents, buy a book, visit your local Small Business Administration or SCORE (retired executives who give free advice to new business owners). In other words, don't just rely on your uncle Joe who owns a plumbing business for all your information.
   


3. Do you know what you don't know? Get expert help. A business attorney will advise you on which legal form of business is best for you and your business – sole proprietorship, general partnership, C Corporation, S Corporation, or Limited Liability Company. A tax advisor will also advise you from a tax perspective which legal form of business is best for you. He/she can also let you know what counts as a business expense, etc. A web site developer can help you design and host your website. A good way to find a good website company is to look at the bottom of websites of small businesses or non-profits that you like. Depending on your business, you may also need to hire a bookkeeper, a marketing consultant, graphic arts, etc. For any areas that you are not an expert and if that area is critical to your business, you must fill in that gap with outside expertise.
   


4. Where are you going to get the money? Develop a good estimate of start up cost as well as how much it will cost to sustain your business for at least one year. Then establish a plan and list out your financing sources. Will it be business credit cards? Your 401K? Home equity loan? SBA loan? Make sure you consult your tax expert for advice on which of these options is best for you and your business.
   


5. Do you have something in writing? Yes, as much as some of you may hate the idea, you must have a business plan and a marketing plan. There are many places to get simple templates for both documents - http://office.microsoft.com and www.sba.gov to name just a couple. Hire a new venture consultant to complete the forms for you if you just cannot do it yourself. Even just an outline of a business plan and marketing plan will be helpful. Not only will banks, your hired experts and even some clients want to see your business in writing, but it is an excellent exercise in fully planning out your business.
   

Lastly and most importantly, commit yourself to your dream fully so that you give it a good fair shake. It is a business after all and not a hobby - equip yourself with information and experts. Talk to people about your business - you will be surprised how much resources and contacts are out there (your business attorney may tell you to have them sign a Confidentially Agreement first!).

You will be well on your way to proving your family wrong and proving your friends right!

Recently, Su K. Joun left her job of 15 years and made the leap to start her own business called MYSU Company, LLC to publish a parenting magazine like no other called Parents for Parents™.

Labels: starting your business