How much Income (net profit) would you like your new venture to bring in annually after: 6 months, 1 year, 5 years, 10 years, 20 years or more? If you are simply buying yourself a job but have so many more headaches, longer hours and greater risks (95% of businesses fail in their 1st 5 years) is that worth it to you?
Along with creating income now will be your ability to sell and retire or retire and continue to earn residual income. As a former Real Estate Agent I saw many Agents build their business on their name alone and when it came time to retire it was very difficult to sell their business entity when it was so based on their personal name. What “exit strategy” or planning for retirement can you build towards? Would you be able to have early retirement?
Closely related to income is how large you intend to grow. Is this a business that will be dependent upon your efforts alone or can you hire and expand – locally, nationally, internationally?
A huge consideration will be amount of time that is needed to run your business and not just the operation of the business itself but things like bookkeeping, purchasing supplies, any training and meetings for yourself and/or staff, opening or closing, driving or non-productive time that would detract away from your time selling your product or service. (Usually done before or at the end of your already long day)
Along with time is cost of starting a business vs. the gross profits or cost of running a business vs. gross profits. How much money will you keep? How much money will you need for starting a business? Will you need the help of investors? Who would you approach? Do you have a business plan ready to present?
Do you know your personality type, your strengths and your weaknesses? You may be a promoter but can your personality type handle the finances? You may have great skill level in your area but can you manage and train others if you plan on expanding your business? Is there a difference between being an Entrepreneur and Small Business Owner or an Entrepreneur and Large Business Owner?