If You Can Say Yes to These 5 Questions, You're Ready to Start a Small Business

You may be in a great place to do something big.

If you've always wanted to work for yourself, then you may be seriously considering starting a small business. Doing so could mean getting to spend your days at a job that's more fulfilling, and it could also mean earning more money -- if not immediately, then at some point down the line once your business overcomes its growing pains and starts to shine.

But if you're going to start a small business, it's important to make sure you're truly ready -- not just financially, but logistically and mentally. Here are some questions to ask yourself before you kick off that venture -- and ideally, you should be able to say yes to every one before you dive into small business ownership.

1. Do I have a lot of savings on hand?

It can take a long time for a small business to turn a profit. In some cases, that could mean not making actual money for well over a year. That's why it's essential to have a robust savings account balance before starting a business. If you sock away enough money to cover, say, two years' worth of bills, you won't have to worry about covering your expenses during that time. Instead of stressing over your piling-up expenses, you can focus your energy on moving your business forward.

2. Do I have an actual business plan?

Having a great idea for a small business isn't enough. You need an actual business plan that covers different aspects of your venture, such as who's going to handle which tasks, where your business will be located, what its goals are, and so forth. Make sure to put that plan in writing before diving in.

3. Do I have realistic expectations?

Some people start a small business and are disappointed to see that it ends up being a lot of work with very little financial upside at first. That's a reality you might end up facing, so be prepared for that and remind yourself it's not an unusual thing. 

4. Am I willing to ask for help?

Some small business owners want to do everything. And that's often a recipe for disaster. You may have a lot of knowledge about a specific product or service you're selling. But that doesn't necessarily make you great at marketing or accounting (which, for the record, can be a lot more complicated for a small business than for an individual or family). Make sure you're willing to outsource tasks as needed. 

5. Am I confident in my ability to manage my time?

When you own a small business, time management is key. If that's something you're good at naturally, then you may be in a great place to get that business going. If not, you may want to work on developing that skill before quitting your day job and sinking all of your resources into a venture you manage solo.

You may find that starting a small business is the best decision you've ever made. Or, you may realize that starting a small business is the wrong move for you. Run through these five questions before taking that leap so you don't wind up regretting your choice.