Are you thinking of starting a company?

There are a range of factors that you will want to consider. Starting a company isn’t a simple task, and jumping in without doing the necessary research is never a good idea. So before you decide to start a business, be sure to ask yourself the following five questions.

What type of a company would you like to own?

There are typically two types of people who want to start their own business: those that know exactly what they’d like to do, and those that don’t have a clear idea of what they want to do. In order to ensure success, you need to have a clear, definite idea of the type of business you’d like to run. Otherwise, you risk getting in over your head and being unable to define a clear path for your small business.

Who is your targeted customer?

Choosing your target market is extremely important, as it will help you to figure out how to approach marketing and actually selling your product or service. Consider what your target customer wants and what they are like. It’s important that you enjoy working with the type of people in your target market.

Are you prepared to change your lifestyle?

Owning a business will completely change your life, and you should be ready for those changes. You won’t have as much time to spend with your friends, and you’ll find yourself working well beyond “normal” business hours. Take a minute to seriously evaluate whether or not these are changes you’re willing to make.

What service or product will you sell?

This should be one of the first things that you figure out before beginning to launch your small business. Figuring out what you’re going to offer goes hand-in-hand with determining who your target market will be.

How will you fund your small business?

The amount that you’ll need to start up your business depends greatly on the type of business you want to own. Will you need a storefront, or can you work out of your home? Will you need employees, or can you do it on your own at first? Carefully evaluate exactly what you’ll need financially to get started, and then determine where these funds will come from.

These are the top five questions that you will need to ask yourself prior to starting up your own small business. What other questions do you think are important to consider?