What Should One Consider When Starting a New Business?

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According to the US Census Bureau, statistics show that about half of businesses that employ people are still operating five years after they open (Klein). What this means to the average entrepreneur is there is an equal chance of success or failure. So many people who choose to pursue the American dream see business ownership as the best route to achieve it. But with as many success stories are stories of failure one can wonder what sets some companies apart from others. Is it timing? Planning? Luck? Or maybe a combination of all three? Luck and timing can come into play and help someone who would otherwise be struggling but planning is of the utmost importance when opening a business. One’s ability to cook, style hair or fix cars is not enough of a reason to open a business. Over the lifetime of a business, 39% are profitable, 30% break even, and 30% lose money, with 1% falling in the "unable to determine" category (Klein). There is a lot that goes into opening a business, especially in today’s volatile economy. Self-evaluation of your strengths and weaknesses is required when building a successful business. It is essential to have a clear vision of the business, and what you are planning. The most important steps, that anyone planning to start a business must take, are proper research and planning. A thorough, workable business plan is crucial and will become an invaluable tool. The financing, legalities, licensing, insurance and taxes also need proper consideration.

If you are opening a business you want to be one of 50% that are still open after five years. The first question you should ask yourself is; what business should I choose? The one that utilizes your interests, skills and background will be the best choice for you. Consulting local experts and business owners about the growth potential of businesses in your area will increase your chances of success. The type of business and an appropriate location should be determined before taking...
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