Are you considering going into small business for the right reasons?

You may decide to do so because you desire independence and to be your own boss. You may prefer doing the type of work that you are unable to do in your current job. You may want a flexible lifestyle. Perhaps financial security is your reason, or perhaps the challenge of succeeding is behind this choice.

Before jumping into the deep end of the business world, ask yourself the following questions.

• Could you operate a business - whether on a part-time or full-time basis?
• Do you have sufficient money to start? It is wise to have around six to twelve months worth of funds before you even start.
• Do you have enough funds to keep you going for the first year?
• What are your assets versus your liabilities?
• What security could you offer the bank manager or financier?
• Do you have extensive experience in the industry? If you don't, are you able to employ someone who has this necessary experience?
• If you are employing staff, do you have effective management experience?
• Do you require certain technical skills? Is a short course available that could provide these skills?
• Can you self-fund your business or will you have to borrow funds?
• If you will need to borrow, what will be the ratio of your capital to borrowed funds? The golden rule is 1:1 or 1:2.