This segment outlines the three most important factors that must be considered before starting a business –
1. Do you have a passion for the work? The going is going to get really tough really fast. It will be your passion that sees you through it. If you lack passion, you will lack the motivation to continue to fight.
2. Can you make money with your passion? The object of the great game of business is to make profits. If the object of your passion is not scalable enough to yield profits commensurate with the risk associated with starting a business, then just leave it as a hobby.
3. Craft a business plan. There is very little value in having a business plan but there is tremendous value in planning for the business. Using Google and US government resources to research industries, markets and competitors is very important. Developing a financial plan that forecasts revenues and expenses is even more important.
After these factors have been worked through, then you can begin to decide whether you should start from scratch or purchase an existing business. With four million Baby Boomer owned businesses hitting the market in the next 3-5 years, there are incredible opportunities out there.