Is Starting a Business Worth it? Ask Yourself These Questions to Find Out

Owning a business is unlike any other “job.” Little compares to watching your hard work and creativity flourish into a thriving business. The financial and personal rewards resulting from business ownership can be great, but starting a business is certainly not for everyone. Most people are familiar with the bleak statistics on startups: More than 20 percent fail in the first year. Half of new businesses fail by the fifth year. Upon learning this information, you may wonder, “Is starting your own business worth it?” To find out if starting a business is the right move for you, ask yourself the following questions:

Can I Afford the Startup Costs?

The limiting factor in most entrepreneurial pursuits is money. If you are thinking about starting a business, identify the startup expenses you will likely encounter and compare these costs to the resources you have at your disposal. Consider the following questions when estimating your startup costs:

• Do I need to rent an office or retail space?
• What type of equipment will I need?
• How much inventory should I start with?
• How much will it cost to build a website and develop other marketing materials?
• How much will I spend on professional consultants like outsourced general counsel?
• How will insurance and taxes affect my startup costs?

Is There a Market for the Product or Service?

Even if your business idea is innovative and exciting, you have to make sure that there is actually a market for the product or service you intend to offer. If you have already poured a great deal of your time and effort into developing your business idea, it can be difficult to receive constructive criticism about the idea. Nevertheless, comprehensive market research is essential. Research industry trends, evaluate your competitors, and consider using a market survey to gather information about consumers.

Are You Ready to Take on the Responsibilities of Business Ownership?

As any entrepreneur can tell you, starting a business is not like a typical job. You cannot simply clock in at 9 am and clock out at 5 pm every day. Starting a business will likely take up a huge amount of your time and attention. One of the most important questions you will need to consider when you think about starting a business is whether you can realistically take on the responsibilities associated with business ownership.

Contact a Naperville Business Lawyer for Help

Before starting a business, it is important to estimate startup costs, conduct market research, and evaluate whether you can feasibly manage the responsibilities associated with business ownership. At the Gierach Law Firm, our Naperville business law attorneys help budding entrepreneurs avoid legal pitfalls and set their businesses up for success. Our outsourced general counsel program allows small and medium-sized businesses to benefit from personalized legal guidance without needing to hire an in-house lawyer. Our YouTube channel also has valuable information for both new and established business leaders. Call 630-756-1160 for a confidential consultation.

Sources:

Investopedia

Nerd Wallet