Evaluating Your Chance for Success
Once you've decided that you have the right
stuff to be an entrepreneur, you're ready to determine if your business idea
has the right stuff. Before you pump your life savings into a small business,
you want to know if it has a chance to succeed.
Here's a look at the prime considerations for determining if your business
idea has a chance to succeed:
- Market assessment— is there a market
for your product or service? If so, how much income can you expect to derive
assessment— how much will starting a new business cost you? Can you
afford a lengthy "red ink" period following startup, as well as
periodic lulls in cash flow? Can you afford to fail?
assessment— will you be able to obtain the necessary financing for
your business? If so, from where?
assessment— what potential legal liabilities are you exposing yourself
to by starting a new business? Are the costs of protecting yourself worth
your industry— how can you learn more about your chosen industry and
about the resources that are available to help you?