5 Questions to Ask Yourself Before You Start a Business

Many women that I speak with and have worked with often ask me the same question. How do I know if I am ready to take the leap? This is not an easy question to answer and often is very self-determined. But here are some questions you can ask yourself before you launch into entrepreneurship.

1. What’s my financial situation?
   Oftentimes, leaving a career or job cold turkey is a risk many of us are not comfortable doing. It’s important to have a clear understanding of the ups and downs of the financial situation of owning your own business. For example, I kept a small private coaching practice after I left my full-time job and while I was ramping up my own business. Depending on the type of business, you might have to deal with seasonality or cash flow issues. Also, some businesses take 1-2 years to become profitable. Take time to assess your finances to ensure you have enough saved to float you during uncertainty as well as enough secured from a bank or lender to get started.

2. How comfortable am I with risk and failure?
   I know that the biggest learnings in life come from taking risks and accepting failures. Being an entrepreneur, you’re often faced with unexpected challenges that you need to face head-on. And sometimes, our best-laid plans simply end up not working out the way we expected. Before launching into your own business, it’s important to assess for yourself how comfortable you are with risks and potential failures.

3. What’s my entrepreneurial dream?
   Think about your dream and do some research. What problem in the world or your community are you striving to fix? Really get clear on exactly what it is you want to offer into the world and how it matches with your life purpose. Having clarity on this will help motivate you and drive you forward. This will certainly evolve over time but having a clear idea of your values will keep you focused on what is core to who you are and what you want to achieve.

4. Who are your advisors?
   Business is business no matter what field you’re in. Who can you talk to in your community about what you’re up to? Who can you turn to as a mentor? Who do you find inspirational? Talk to your friends and family or people whose opinion you trust to run your idea by them. Even if they’re not supportive, you will get input on things you may not have thought about that you need to think through and resolve. By going through this exercise, you will also find your supporters, mentors, and advocates who can help you along the way.

5. What will my day-to-day look like?
   As an entrepreneur, this was one of the most surprising aspects of my journey. Truth be told, I hadn’t thought about what the day to day of running my own business would look like, especially a family-owned business. If you want to be an entrepreneur, think through all the reasons you want to do this AND how you think your day-to-day will look. Will you be achieving what you want by taking this big step? What hours will you be working? Do you have a family that needs attending? When will you walk the dog? It’s important to ensure that your day-to-day life will be in line with the time you have to commit to launching a whole new business.