Before You Take the Plunge

Analyze Yourself

• Do you have the confident, take-charge personality it takes to run your own show?
• Does your family support your entrepreneurial project?
• Do you have the tenacity to stick with it?
• Are you ready for a significant time commitment? Starting a business often involves more than a 40 hours a week.
• Are you comfortable with a certain level of uncertainty and chaos?
• Are you a risk-taker? 

Identify Your Product or Service

• Take the time to choose. Carefully compare the pros and cons, the risks and benefits, of each type of business.
• Look for a business that allows you to specialize and fills a growing need.
• Learn the business by working for someone in the same business first.
• Pick something that you will enjoy doing.

Know the Financial Risks

• Don’t use your retirement income to start a business. Consider a small business loan to get you started.
• Know that you have the resources and cash flow to cover a start-up period of a year or more.
• Consider “moonlighting,” that is, starting a business in your off-hours while still working. But avoid all possible conflicts with your existing job.
• Beware of self-employment scams.

 Develop a Good Business Plan

• A business plan shows why your idea is workable, how your business will operate, and how much your income and expenses will be.
• The checklist for starting a company from the Small Business Administration is a good place to start. It helps you assess your situation, identify a niche, analyze the market, and organize your finances.
• It’s not enough to have a good product. You must know how to market and sell it. How will you reach your targeted market? What will make people buy your product?
• Use the online workshops and templates from the Small Business Administration to help you develop your plan.

Get Help

• Contact SCORE—Counselors to America’s Small Business—for free, confidential counseling on starting up a business.
• The Riley Guide has links to many sources of help for setting up your small business.

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