subject: Important Questions To Ask Before You Start Your Own Business [print this page] The economy is in complete shamblesThe economy is in complete shambles. We've been in the middle of one of the worst recessions in the history of the world that started around late 2008 and has stretched well in towards the end of 2010 and shows no signs of letting up anytime soon.
One of the only bright spots in any recession is the fact that new businesses are often born because of recessions. Why is this? Well, it's pretty logical actually... the first thing companies do when a recession starts is to lay off as many workers as they can in order to reduce costs. With such a sudden surge in the number of unemployed people looking for jobs, one of the only things those unemployed people can do in many cases is to start their own business.
But before you run out and start your own business there are several very important questions that you need to ask yourself. These questions can vary depending on the particular person, their training and background, and experience and specific situation, but I think you can get a fairly good idea of the type of things you need to ask yourself before starting a business from this article.
The first question you should ask yourself is whether or not the money that you have set aside to start the business is money that you can afford to lose. If you only have $5000 to your name and next month you have $6000 in mortgage payments and credit card bills... maybe spending that money on building a new business if not the most logical thing to do, or the safest thing to do.
The next question I about age. How old are you? Why is this question worth asking? Well, what happens if your new business fails; are you young enough to start over and find a new job? It's something you should take into consideration and I find that many people tend to overlook it.
The next question you need to ask yourself is about insurance. If you're currently at a job that offers health insurance benefits then you may not be able to afford insurance on your own if you start your own business. People tend not to realize that insurance costs much more than they think it will when you're running your own business. At your current job, your employer is able to negotiate lower insurance premiums based on quantity and that is something you won't be able to do when you start your new business.
Further, if you are nearing the end of your working career, health insurance can become prohibitively expensive for the self-employed with premiums that can cost $10,000 - $20,000 a year or more depending on your age and health history. This is a very large consideration and you should spend time with a professional insurance agent running scenarios before you start your business.
Finally ask yourself where you're going to get the money to start the business. Will you be using your own savings? Will you be getting money from friends and family or other investors? Will you need to go to a bank to get a loan and if so what kind of credit history do you have? Be sure you get these questions completely ironed out because only then will you be in a position to start any sort of business.
Starting a business can be exciting as well is challenging and hopefully these questions have given you a firmer grasp of what may be in store for you.
Important Questions To Ask Before You Start Your Own Business
By: Jason Markum
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