Straight Talk
What to Consider Before Starting a Business 

When starting a new business the factors related to your living environment, relationships with family, friends, health issues, and household finances play a direct role in the success of starting a business. In this section we will discuss these factors more in depth. 

 
HEALTH

Evaluating your health conditions and needs will give you insight into what type of schedule you will need to establish, how you will function during the day, what type of equipment and/or software you may need, and ultimately what type of business you will start and how you will operate it.

For example, we have many people contact us who are living with the challenges of Fibromyalgia and Chronic Fatigue. Depending on the severity, people with these debilitating conditions need a flexible schedule, a comfortable and adjustable work environment, time to rest, and a business that allows them to take the day off when the pain levels are high.

Realistically, evaluating their daily needs and what is required to function throughout the day provides insight into what equipment, software, and scheduling requirements they will be need to start and operate a business successfully.

When evaluating your health needs, in relation to starting and operating your own business, we suggest you make a list of your needs and keep that list where you can refer to it as you begin your journey in starting your own business. 

To learn more about office ergonomics visit healthycomputing.com 

 
SUPPORT FACTORS

The environment and the type of relationship you have with the people in your environment play a key role in the success of your business.

Starting and operating your own business requires extended hours, sometimes working 6 or 7 days a week 10-14 hours a day. Some pertinent questions to ask yourself are: 

• Does the person you share your life with support your decision in starting a business?
• Are they willing to make the emotional and financial sacrifices needed for you to successfully start and operate a business?  
• Which friends or family members do you trust and can talk with when making critical decisions for your business?  
• Will they understand and support the long hours required to start and operating a successful business? 

 Example: 

Kathy resided in a small town with her husband and two small children.
Her husband was successfully employed with a stable company in the area. 
And although Kathy was happy being a wife and mother, she also wanted to have her own business. She researched the area and decided
she wanted to open a woman's clothing store in the small town where
they lived. Since the town didn't have a woman's clothing store Kathy figured she would have the corner on the market. 

When Kathy discussed her desire to start a business with her husband,
he was less than thrilled with the idea. How was she going to take care
of her home and children if she was working a business? After many discussions, her husband conceded with the stipulations that Kathy continue to maintain the home and the children could not go to day
care. Within a few months, Kathy opened the doors to her new 
store.

Every day Kathy took care of the needs of the home, the children, and
the business. Within a year the schedule took it's toll on Kathy,
dissension grew at home and the store was not conducive for small children.
The store remained open for a year and four months, making
a profit the first year. In the end though, Kathy held a going-out-of-business sell, sold the fixtures, broke the lease, and was still responsible
for the remaining debts. Kathy and her husband filed bankruptcy putting even more strain on the marriage and family.   

 BUDGET AND CREDIT REPORTS

 Before starting a business it is important to evaluate your income and household expenses. When evaluating your home budget, be conservative, these are the funds that will pay the household expenses while you start and operate a business. Any strains on the home budget can put your business at risk.

It is also important to acquire a copy of your credit reports. Funding for a new business in is based on the owner's personal credit since business credit has not yet been established. Therefore it is vital for you to know what is on your personal credit report and that the information is correct. If there are items on your credit report that are incorrect, or do not belong to you, dispute them. Make sure your personal credit report is as clean and accurate as possible. To acquire copies of your credit reports contact Equifax, Experian, TransUnion or visit annualcreditreport.com.

 How long can it take before the business is supporting the household? Depending on the business, it can take 6 months to 2 years before the business is profitable enough to support the household.

Knowing how to managing your personal finances is a must when starting and operating a business. For assistance in setting up a budget contact Custom Bookkeeping Solutions, LLC for more information.