More and more people are starting their own businesses these days. If you’re headed down this path, there are essential factors you should know.
First, it takes money to start a business - this can come from personal savings, but most of us don't have enough on our own. Borrowing from a bank, or financing from investors are other options. But beware - each type of financer has their own unique challenges. Banks are hesitant to take on risk and may be wary of new business owners without a proven track record. On the other hand, some investors are opinionated and can become overly involved in how to run your business. So decide up front how you are planning to finance your idea and how much involvement from others you will permit.Another important consideration is to take the time to create a formal business plan. Make sure your plan addresses some basic questions:
- Is this a good and original business idea?
- What does my competition look like and what will be my advantage over them?
- When do I expect to make a profit?