How Ready Are You to Start Your Own Business?

Starting your own business can be one of the most rewarding experiences of your life. But successfully launching a new business is a huge task that requires a lot of planning, determination and a deep personal commitment.

The 15 questions below are designed to help you decide how ready your are to take this life-changing leap. Read each question, then choose the answer that best applies to you. As your situation changes, be sure to come back to this site to take the quiz again.

QUESTION 1
In choosing the type of business you plan to launch, it's essential to take into account multiple factors, including personal goals and interests not just market trends or good ideas. How would you describe your business?

The guidelines provided below are intended to help you assess your readiness to start your own business. They are general in nature and are not intended to serve as advice on an individuals specific situation. We recommend that you discuss your results with a SCORE counselor.

Here are some guidelines based on your answers.

I want the independence that comes with owning my own business, no matter what type it is.

If I don't start this business, someone else will.

I'd do this for free if I could.

QUESTION 2 
How would you describe your skills and experience as they relate to your new business?

I've never done this, but I've always dreamed of this kind of work.

I've never done this work professionally, but people always tell me I do it well.

My current job involves aspects of this work, but it is not my main focus.

I do this type of work regularly in my present job.

QUESTION 3
Before you start your new business, define the rewards you expect from it. Which of the following best describes your expectations?

I want to own my own business so I can make my own hours.

I want to make enough to pay my living costs. I just want to make my own decisions.

I want to make enough to retire in the next 10 years.

I want to become independently wealthy.

QUESTION 4
It's important to establish accurate start-up costs. Which of the following statements best describes you?

I know I'll have start-up costs, but I'm not certain how to calculate them accurately.

I've priced the equipment, commercial space and inventory I'll need to start up my business. But I'm not sure how to factor in variables, like marketing.

I've figured out all my hard costs (equipment, space, supplies, and inventory), as well as variable costs, such as marketing or utilities. I've also calculated my living expenses for the first six months of business.

QUESTION 5
Another factor critical to your success is your ability to invest in your business's future. Which statement best describes you?

I have not yet considered what the investment requirements will be.

I have figured out what my monthly expenses will be, but not how to pay myself.

I know my monthly expenses and have set aside enough money to get me (and my business) through the first year.

I have my first-year expenses and living costs set aside. I've also calculated how much business I'll need to do to break even.


QUESTION 6
How well do you know the market you're about to enter? Choose the best description of your strategy.

I know the business I want to start, but haven't thought about the market.

I've talked to people and looked at market trends, but need to develop short-term steps to get to my long-term goals.

I've identified who my customers are, how I can reach them, and how my approach can carry me through the first year.


QUESTION 7
How well do your personal goals (see Question # 3) fit with your business' short- and long-term potential?

It's too soon to tell.

I have worked out a strategy that will carry me forward over the first year. I haven't thought much beyond that.

I have a clear idea of how the market can fulfill my long-term goals, but I worry about how to stay on track through the day-to-day decisions.

I've got all the bases covered.


QUESTION 8
Some businesses (such as professional consulting services) require a minimal staff, while others (such as manufacturing) require a significant number of people. How many employees will yours need?

I can run my business myself.

I will probably need some clerical help, but otherwise I can do it.

I'll need to have a moderate-sized staff.

I'll need a large staff to start.


QUESTION 9
Knowing when, how and whom to hire will significantly affect your chances of success. Which of the following statements best describes your situation?

I'm not sure I'm comfortable making good hiring decisions.

I've hired employees at companies where I've worked, but I'm not sure how to know which people (and how many) would be appropriate for my own business.

I know what kind of people I'll need and how many. But what worries me are the employment regulations and policies.

I feel completely comfortable with handling my own human resources needs.


QUESTION 10
Can you summarize your business's mission in a single paragraph that will explain to anyone who reads it why your business exists?

What would be the point?

I don't know how.

Yes, what's more, I've already done it.


QUESTION 11
A business plan is one of the most indispensable tools a new business has. Have you developed a written business plan?

Why do I need one?

I need to create a business plan, but am not sure how to collect all the information and put it together.

I've got a business plan, but am not sure how to use it.

I've got a business plan, but am not sure if it's valid.


QUESTION 12
Unless you're able to finance your business out-of-pocket (and few experienced business people would advise this), you'll need a bank loan or other type of financing. Which statement best fits your situation?

I have never taken out a loan from a bank or other financial institution.

I've borrowed money for other purposes (i.e., a car, a home), but never for business.

I've applied or been approved for a business loan, but am not certain it's the best package for me.

I've been approved for a business loan, but am interested in other financial services that might help me.


QUESTION 13
Every business needs to have a legal identity and a specific structure. It's important for you to establish yours from the start. Choose the statement that best describes your business.

I will be the only owner of my business.

I am going into business with a partner.

I plan to incorporate my business.


QUESTION 14
Money management is a make-or-break requirement for any business. How much do you know about basic accounting?

The closest I've gotten is balancing my checkbook.

I know some basic accounting principles.

I know the basics, plus balance sheets and income statements.

I'm very experienced in accounting.


QUESTION 15
No matter what business you're in, technology will play a part in your competitive advantage,whether it's helping to manage your office or reach new customers. What is your level of familiarity with business technologies?

I've never touched a computer.

I have a home computer that I use for word processing and Web browsing.

I use a computer regularly in my current job and am familiar with the standard business software in use today.

I am very familiar with business technologies and plan to employ them in maintaining and growing my new business.

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