4. How do I determine if I am capable of starting a business?
This is a tough question because the answer requires an objective self assessment. You have to analyze your own talents and traits in terms of your physical capabilities and mental qualifications. We know how difficult this can be, so we've crafted a set of Self Assessment Guidelines that define the many factors that you should address in vetting yourself. Also, the SBA defines complementary considerations on their webpage entitled, "Is Entrepreneurship For You?". This webpage also lists the various causes of failure for small businesses, the top two being: Lack of Experience and Insufficient Capital (Money). So it's especially important to have some first hand experience in the development and delivery of your planned products and services and have adequate financial assets to meet both business and family expensess for the first year.
Once you have taken stock of yoursel and verified you have passion for the venture, you can then compare your skills and expertise with those who are successful in similar business pursuits. Analyze what particular attributes and operational capabilities made other businesses profitable and viable in the marketplace. Can you duplicate or acquire and surpass the capabilities that other successful businesses possess? What unique skills or edge do you possess to obtain a sufficient share of the total market in the area you plan to serve? Review business journals and other comparative studies that identify the requirements necessary to operate such a business. Based on your findings, develop a strategy for what should be incorporated into business operations.