by Liz Kudwa
A: Starting your own small business is a big commitment and you are right to really take some time to think about whether small business ownership is right for you. I see a number of people at the library that aren’t sure what to do first when they have a good idea for a business. It’s very important to do your research up front and good planning will prepare you for a number of challenges. The Capital Area District Library has a number of books on starting a small business. Below are some that specifically offer guidance on how to determine if small business ownership is right for you.
o Small Business for Dummies by Eric Tyson
o What No One Ever Tells You About Starting Your Own Business by Jan Norman
o Launching Your First Small Business: Make The Right Decisions During the First 90 Days by John Duoba
o The Entrepreneurial Itch: Don’t Scratch Until You Read This Book by David Trahair
You should start by evaluating your strengths and weaknesses as a potential small business owner. The Small Business Administration (www.sba.gov) has a great website that walks you through all the steps of starting a business. They recommend you consider your answers to the following questions:
Are you a self-starter? It will be entirely up to you to develop projects, organize your time, and follow through on details.
How well do you get along with different personalities? Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers, and professionals such as lawyers, accountants, or consultants. Can you deal with a demanding client, an unreliable vendor, or a cranky receptionist if your business interests demand it?
How good are you at making decisions? Small business owners are required to make decisions constantly – often quickly, independently, and under pressure.
Do you have the physical and emotional stamina to run a business? Business ownership can be exciting, but it’s also a lot of work. Can you face six or seven 12-hour workdays every week?
How well do you plan and organize? Research indicates that poor planning is responsible for most business failures. Good organization ¬ of financials, inventory, schedules, and production ¬can help you avoid many pitfalls.
Is your drive strong enough? Running a business can wear you down emotionally. Some business owners burn out quickly from having to carry all the responsibility for the success of their business on their own shoulders. Strong motivation will help you survive slowdowns and periods of burnout.
How will the business affect your family? The first few years of business start¬up can be hard on family life. It’s important for family members to know what to expect and for you to be able to trust that they will support you during this time. There also may be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk in the short-term.
Elizabeth Kudwa is the Business Reference Librarian at the Capital Area District Library located at 401 S. Capitol Avenue in Lansing, MI. Contact her at 517-589-9400 or by e-mail at kudwae@cadl.org.
