5 Questions to Ask Before Starting Your Own Business

Will I have passion for running this business?

Short's website grew out of his love of the burgeoning Internet and how it offered an entirely new way of finding information about nursing. He says it just goes to show that turning a hobby into a business makes a lot of sense because when you enjoy something you're less likely to burn out and more inclined to be willing to put in the long hours necessary to get a new venture off the ground. But what if your idea has the potential to be lucrative while not involving an exciting product or service? "I think you can be passionate about anything, even if it's customer service or customer experience," he says. "You don't have to love, [for example], car insurance." The idea is to find some aspect of your business that you can nail better than the competition.

Is there a strong need in the market for this business?

Talk to everyone you can about your idea--including professionals with some knowledge of the space you want to enter--and ask for honest feedback about whether it's something people need. "Make sure [your] gut feeling is based on research," he says.

How will I pay the bills?

Unless your business will be making money from the start, you need a plan for paying your bills, one that figures in unexpected bumps in the road. "If you run out of cash and get strapped you're going to start losing your passion because you have to put food on the table," he says. To lessen your risk, figure out how long it will take to be profitable, how much money you'll need in the meantime and where it will come from. Want ideas? Read "10 Crazy Bootstrapping Stories"

Do I have the strengths needed to grow this business?

No one is good at everything, which means you have weaknesses. The key is identifying the talents you need to grow your business and taking a hard look at whether or not you possess them. Short did this himself a year ago after moving out of a home office where he had previously been doing everything himself. "I realized there were things I wasn't good at so I ended up hiring out all my weaknesses so they supplement my strengths. And I can just focus on my strengths," he says.

Does my family support me?

If your spouse or significant other isn't on board he or she also won't appreciate the time and attention your fledgling business will require. "If you're single and you don't have any responsibilities this question might not apply but if you have other people involved in your life, if they're not on board it's going to create friction," he says.