4 Questions to Ask Yourself Before Signing Anything

In our first real post for this series, we're going to look at some questions that you should ask yourself before doing anything else. They really are tied together, and you may answer one while contemplating another. Also included are some links to potentially helpful research rabbit holes. Thank you for coming by, we're glad you're here.

1. Who am I going into business with? Are you going into business alone as a Sole Proprietor? Do you have friends that you trust enough to be partners with? Are you starting a nonprofit organization (starting a nonprofit has its own protocols that we won't be covering in this series, but these questions still apply)? Know your shortcomings and strengths. If you know are bad with staying focused on something, try finding a partner who can keep you on task. If paperwork makes you feel tired all over, find a partner it doesn't bother so much. No one is good at everything, so it is a good idea to be thinking about how to fill any gaps in your knowledge and abilities.

2. Who am I going into business for? Perhaps this is your get-rich-quick scheme aiming to make you your first million, or maybe you really enjoy something you are already doing and would like to try to be paid for it. Maybe you have a friend you want to have a fun adventure with. Maybe you are the friend coming in to help. Regardless,

3. What am I prepared to give to/lose to this business? It seems sort of obvious, but it's best to establish an initial baseline for your big go/no-go decision; you can always adjust whatever you come up with as you learn more. This is an all-around question, not just tied into money, though that is a big part of it, and it requires more than strictly numbers. Is your business going to be your main (or only) source of income? Is it a side-gig to monetize a hobby you already have? Do you think you can handle whatever needs to be handled in 10 hours per week? 20? 40? More? Starting a business requires some amount of capital (generally money), even if you are planning to sell services instead of products. Are you willing to fork over $100 in a year? $1,000? $100,000? More? A business's early days are a bit of a gamble, even if it seems like a sure bet, so if you were to have no sales at all, how long would you be willing to pay time and money to try to change that?

4. What resources are at my disposal? This doesn't just mean money, though you will need that as well (grants, investors, your savings, etc.). In Arkansas, there is the Arkansas Small Business Technology and Development Center. It is an economic development organization with offices across the state and they can probably answer any question you might have about anything business-related; your state might have something similar. Maybe you have a group of people willing to volunteer for some routine menial tasks. Is there anyone in a group you interact with that is willing to check your work if its in their field? PLEASE DO NOT USE YOUR FRIENDS AS A RESOURCE. Your friends are not resources, they are friends; don't abuse your relationships. That being said, if they express interest and are willing, know where the line is and stop before it feels like you are trying to get them to do work for you for free.

These questions are not the only ones to ask, but they are important ones. If it seems like our clarifications are little doom-and-gloom, we're sorry, that's not exactly our intention. We want every business to succeed with flying colors, but some don't for any number of reasons and we wanted to make sure you thought about some of the negative outcomes before you're legally on the hook for anything. Like with anything else, preparation is key. Know what you're getting into and what you're giving up. Having your own business is a lot of work, but it's worth it!

Next time, we'll cover some of the pros and cons of the different kinds of businesses.