What to Know Before Starting a Business

Thinking about starting a business? You're not alone. Every year, thousands of Americans catch the entrepreneurial spirit, wishing to launch a small businesses to sell their products or services. Some businesses thrive; but unfortunately many will fail. The more you know about starting a business, the more power you have to develop an organization into a lasting source of income and satisfaction.

So where do you begin? For starters, Rick Robinson, president of Services4Franchising, a full service franchise consulting business, recommends asking yourself these important questions:

1. How much money do you currently have in the bank, and how long can you survive without a paycheck?

2. How much will it totally cost to start up this business, and how long will it take before it breaks even?

3. Have you researched the competition?

4. How will you market to attract your customers and how much will it cost you?

5. What’s the future of the industry? Is there any new technology that might change its current state?

6. Are there any new or pending regulations that might affect the industry?

7. Is this business necessary or is it a fad?

Overwhelmed? Ideas are cheap, execution isn’t. Knowing how to launch a business is a daunting task, but it doesn’t have to be.

“There are so many steps and potential obstacles that people don’t’ consider when hoping to start a business from scratch.” Robinson says.

When some people realize they’re lacking the know-how, patience, funding and other resources to confidently move on to the next step, according to Robinson, “that’s where the option to invest in a franchise comes in.”

“There’s one thing you’ll hear when starting a business—they say to do something you know something about. It’s easy to come up with ideas on starting a business, but if you don’t have much experience, you may not know how to gather all of that information,” Robinson said. “But with franchising, that’s not the case. You just need the right attitude, because the franchisor has already answered these questions for you and will help you execute a plan for success and ongoing support."

Whether you are launching a business from scratch or joining a proven business model, there will always be some risks—but choosing to become a franchisee has a much higher success rate.

“With franchising, you already have a team of specialists to support you and a proven path to ensure your success. All of your questions are already answered,” Robinson said.

According to Robinson, there are great franchises for almost everyone’s budget.

“It’s important to ask yourself how much you have to spend. Do you have any form of income while the business is still in its infancy? If you’re starting a business from the ground up, it could be months before you ever see any return. But if you can only go 60 days without a paycheck, and you need a business with a quick ramp up to profitability, then a franchise will usually get you there much more quickly”.

One of the best things to do when determining your business venture is to keep an open mind for different types of businesses. “The odds of finding a business that you just absolutely love, that you can run and provide the lifestyle you’re looking for doesn’t usually happen,” Robinson said. “A franchise business gives them the opportunity to have a lifestyle that they love, without having to put everything on the line.”

That’s why Robinson will always ask potential clients one key question: “What is your goal for this business? Let me help you find one to achieve your goals."

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