Before starting out, list your reasons for wanting to go into business. Some of the most common reasons for starting a business are:
•You want to be your own boss
•You want financial independence
•You want to fully use your skills and knowledge
Next you need to determine what business is "right for you". Ask yourself these questions:
•What do I like to do with my time?
•What technical skills have I learned or developed?
•What do others say I am good at?
•How much time do I have to run a successful business?
•Do I have any hobbies or interests that are marketable?
Then you should identify the niche your business will fill. Conduct the necessary research to answer these questions:
•Is my idea practical and will it fill a need?
•What is my competition?
•What is my business advantage over existing firms?
•Can I deliver a better quality service?
•Can I create demand for my business?
•The final step before developing your plan is the pre-business checklist. You should answer these questions:
•What business am I interested in starting?
•What services or products will I sell?
•Where will I be located?
•What skills and experience do I bring to the business?
•What will be my legal structure? (see overview below)
•What will I name my business?
•What equipment or supplies will I need?
•What are my resources?
•How will I compensate myself?
Your answers will help your create a focused, well-researched business plan that should detail how the business will be operated, managed and capitalized.