Want to start a new business? Ask these questions first

March 01, 2013

Want to start a new business? Ask these questions first

Article provided by Collis, Smiles + Collis, LLC
Visit us at http://www.collislaw.com

Many people dream about starting a business and becoming their own boss. However, entrepreneurship takes a lot more than just a good idea. Starting a business can be a financially risky prospect. It is important to make sure you think carefully not just about your willingness and ability to make your idea a success before starting out but also about the planning necessary to comply with legal requirements in connection with the operation of your business.

If you are thinking about starting a business, it is always a good idea to talk to an experienced business law attorney first. The attorney will be able to evaluate your plan and help you sort through planning considerations to get your business up and running.

Before you schedule a meeting with an attorney, ask yourself the following questions to figure out if your bright idea is a solid foundation for a new business:

-Who are my customers? It's great if you like your idea, but to make money, a lot of other people are also going to have to like it enough to pay for it. Figure out who your customer base will be and why they will want to purchase your product or service. A good place to start is by figuring out what these potential customers are currently using to meet their needs, and why your idea is a better solution.

-How do I prove this is a good idea? Even though we call it "going into business for yourself," nobody can start a new company on their own. You'll need investors along the way. How will you convince them to buy in? Should you develop a prototype? Practice explaining your idea to your friends, and ask them for honest feedback about your idea and your pitch.

-How long will it take to start earning money?No new business earns a profit on day one. Depending on what your business model is, it could be several months -- or even more than a year -- before you make your first sale. It will likely be even longer before you start earning enough to draw a salary. Do you have enough in savings or investments to pay your living expenses during this time?

-Can I realistically do this? Be honest with yourself - do you really have the skills needed to make your business a success? If there are notable gaps in your skill set, consider enlisting partners or hiring employees. In addition, you need to ask yourself if you're ready to make the sacrifices necessary to get your business off the ground. While there may be a big payoff in the end, you'll have to give up a lot of time, money and security at the beginning.

Of course, these are just a few of the concerns inherent in starting a new business. If you're thinking about going into business for yourself, consider these questions and then talk to an experienced business law attorney who can help make your dream a reality.