Small Business Basics
Deciding to Start a Business

(Date posted: March 9, 2009)

This business basics page helps you make an informed decision about starting your own small business.

Before making this decision, I recommend that you read the previous pages under the Should you start your own business? topic on the Small Business Basics main page.

Now that you have had a chance to review the pertinent background information, you may be ready to make a decision. This is a serious decision, so I have outlined some steps to help you.

Here are the steps:

Defining your business venture
Low-cost, low-risk business ventures
Larger, more complex business ventures
Do you have what it takes?
Making the decision
Final thoughts

Good luck with your decision.


IMPORTANT

Before using this information to start a business be sure to read the following notice: Disclaimer

Defining your business venture

The first step in the decision process is defining the type of your business venture. This helps determine if it suits you.

Here are the two possible types of business ventures:

  1. Low-cost, low-risk business ventures
  2. Larger, more complex business ventures

I have defined these in the following two topics.

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Low-cost, low-risk business ventures

A low-cost business venture uses your existing equipment and facilities. Thus if you have carpentry tools and equipment, you could start a home repair service. If you have a pickup truck, you could start a cleanup and hauling service. If you have a computer, you could start a business using the computer programs you already own.

You would operate the business out of a home office. You wouldn't have any workers, except perhaps your own family.

You would rent any expensive equipment or tools you need for a particular job. You would have your customer pay for any expensive materials before you start the job.

A low-risk business venture:

  • Doesn't require a lot of cash to start or operate
  • Doesn't violate any laws
  • Isn't likely to annoy your neighbors
  • Isn't likely to create envy or resentment
  • Isn't likely to harm people or the environment
  • Isn't likely to have disputes with customers or suppliers
  • Isn't subject to onerous governmental regulations
  • Uses your existing experience, knowledge, and skills

But you should keep in mind that there are always risks involved in business operations. Some of these are discussed under the Risks of owning a business venture topic on another Business Basics page.

However, it isn't always possible to determine all the risks involved in a particular business venture.

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Larger, more complex business ventures

This type of business venture has one or more of the following features:

  • Might annoy your neighbors
  • Might be subject to disputes with customers or suppliers
  • Might be subject to onerous governmental regulations
  • Might create envy or resentment
  • Might harm people or the environment
  • Might unintentionally violate some laws
  • Requires a lot of cash to start or operate
  • Requires permanent employees
  • Requires the purchase of expensive tools or equipment
  • Requires the purchase or rental of an office, storage facility, or production facility
  • Requires you to gain new experience, knowledge, or skills

This type of business might produce a larger profit than a simpler one. Regardless, my advice is don't try starting this type of business as your first venture.

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Do you have what it takes?

You need certain take-charge attitudes and skills to start and run a business venture. By this, I mean the kind of abilities that a boss must possess. These are such things as being a self-starter, taking responsibility for your own success or failure, and getting the tough jobs done.

If you lack most of the take-charge skills needed for your proposed business venture, my advice is:

  • Either develop the take-charge skills first
  • Or don't try to start your own business venture

Go to this topic on another page to download a free or low-cost version of my Magic Success Secrets ebook.

Then you can use the information in Chapter 7: Develop Empowering Beliefs and Chapter 10: Learn New Skills. This information will help you develop any needed take-charge attitudes and skills.

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Making the decision

I recommend only the low-cost, low-risk type of business venture. After you have achieved success with this simpler type, you may want to consider larger, more complex business ventures.

Before you decide to start your own business venture you should already have (or be able to obtain) the cash, knowledge, and skills needed to start it.

You may wish to consider other factors before making a final decision. Therefore, I recommend that you read (or reread) all the pages in this Business Basics section.

You can use the information in Chapter 5: Make Logical Decisions of my Magic Success Secrets ebook discussed above.

GOOD LUCK WITH YOUR DECISION.

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Final thoughts

I hope this Small Business Basics page has helped you make a sound decision about whether to start you own business.

If you have decided not to start your own business venture now, you may want to try the following other ways to make or save money:

Good luck on your decision.

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