The success of your business can come down to a simple thing such as thorough preparation for every requirement and obtaining a full understanding of all the problems that could be encountered and which require resolution.

Before actually starting your business it is wise to answer the following questions. These questions have been designed to help you think about all the areas that you need to know about and other areas that you need to do something about. The more of these questions that you check with a "yes" answer, then the better off you will be. While all may not particularly apply to your situation, in all probability most of the questions will be relevant. Look at each question and apply it to your particular situation. Make sure that you give honest answers because that will point out features that perhaps require further attention.

BEFORE YOU START

Before you start questions
About you - Tick if "yes"

• Is it for you?
• Are you a self-starter?
• Are you decisive?
• Are you prepared to commit fully?
• Are you prepared to put in long hours?
• Do you have any weak points that you have taken steps to improve on?
• Do you have stability?
• Are you prepared to "stick at it " until you succeed?

If you answered "yes" to all of these, then you are on your way to being suitable to own a business. If you answer "no" to all or most of these, then it is best for you to reassess whether you would be suitable to be a business owner.

Why do you want to start a business?

• Do you want to be your own boss?
• Do you want to be free from the normal 9 to 5 daily working hours?
• Do you want to improve your standard of living?
• Are you are totally bored with your present occupation?
• Do you want to make more money?
• Do you want to be independent?
• Do you want to make a change and do something different?
• Do you feel you have an idea or a product that will be in demand?

Ask yourself whether you are looking for an investment that will grow over the years or whether you are just satisfied taking on something that will replace your last job. Many business owners have come to the conclusion later on that they would not have started out in business on their own if they had any idea at the early stages, of all the problems that would need to be faced.

70% of small businesses fail within the first five years and one of the main reasons is that the new business owner had little expertise in the managing and running of a business.

Be really clear on your objectives and make a decision to commit yourself to achieving those objectives.

All about you

• Are you an entrepreneur?
• Do you have leadership or management qualities?
• Do you have staying power?
• Are you prepared to discipline yourself?
• Are you comfortable with competing with others?
• Are you an organiser?
• Are you comfortable working with other people?
• How well do you get on with others?

Do you know what's involved?

• Do you think you're the kind of person who should get into business?
• Are you experienced in the type of business that you want to start?
• Are you quite sure of all the things involved in running a business?
• Have you discussed your plans with your advisers?
• Have you sought out information from the appropriate Govt associations?
• Are you quite clear about the long hours that could be required in running your business?
• Is your health good enough to handle the workload and stress that could be involved?
• Is your family prepared to go along with the demands of the business?
• Have you spoken extensive with others who are already in the industry you are moving into?
• Have you spoken to potential customers and suppliers in that industry?
• Are you prepared to lose everything should the business go bad?
  

It is very important for you to understand the industry that you are entering and this will best come about by you discussing as much as possible, your plans with those who have been in the industry for some time. If possible, for example, talk to some of your competitors (they don't need to know that you're going into the business) and you will get a lot of information from suppliers, as well as potential customers. If you are able to invest the time and effort to gain this knowledge, the results could be well worth it.

Do you have the expertise?

• Are you clear on the skills and experience needed for the business?
• Do you have these skills and experience?
• If you don't have the skills, are you able to employ the right people who have the experience?
• Have you had any past experience in running a business of any type?
• Have you had management training in a business?
• Have you come from another business in the industry that you're going into?
• Have you honestly assessed your strengths and weaknesses and taken steps to strengthen your weaknesses.
• Have you researched all the publications from the industry that you are getting involved in?
• Have you ever managed or supervised other staff?

Every business requires a certain amount of expertise or skill. One of the most important skills that you must possess is knowledge of how to run a business. There is no shame in hiring the right personnel to take over those specialist functions in the business or looking after areas where you do not have the expertise. However, you must have a basic understanding of how to manage and how to grow a business.