{"id":948,"date":"2015-05-06T20:56:42","date_gmt":"2015-05-06T20:56:42","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterybusiness1xngcxmaster\/?post_type=chapter&#038;p=948"},"modified":"2024-05-03T15:36:27","modified_gmt":"2024-05-03T15:36:27","slug":"considerations-when-starting-a-business","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/chapter\/considerations-when-starting-a-business\/","title":{"raw":"Considerations When Starting a Business","rendered":"Considerations When Starting a Business"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>List important considerations in deciding to start a business<\/li>\r\n<\/ul>\r\n<\/div>\r\n<img class=\"alignright wp-image-8641\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2016\/11\/17185504\/7199498340_83dc0a1364_b.jpg\" alt=\"decorative image\" width=\"349\" height=\"218\" \/>\r\n\r\nThe three fundamental questions to consider when deciding to start a business are:\r\n<ol>\r\n \t<li style=\"font-weight: 400;\">Do you have what it takes?<\/li>\r\n \t<li style=\"font-weight: 400;\">Do you have a viable concept?<\/li>\r\n \t<li style=\"font-weight: 400;\">Is the reason you want to start a business consistent with your character and concept?<\/li>\r\n<\/ol>\r\n<h2>Yourself<\/h2>\r\n<em>Do you have what it takes?<\/em>\r\n\r\nThe entrepreneurial assessments discussed earlier this module are a good starting point for self-assessment. Additionally, you might want to <a href=\"https:\/\/angeladuckworth.com\/grit-scale\/\" target=\"_blank\" rel=\"noopener\">take the Grit Test<\/a> developed by psychology professor and researcher Angela Duckworth.\r\n\r\nAnother way to approach the question is to review the type of questions a founder might ask in an interview and consider whether you would hire yourself. For perspective, scan the questions\u2014and thought process behind the questions\u2014shared by start-up leaders and others in Firstround.com\u2019s <a href=\"https:\/\/firstround.com\/review\/the-best-interview-questions-weve-ever-published\/\" target=\"_blank\" rel=\"noopener\">The Best Interview Questions We\u2019ve Ever Published<\/a>. According to Anne Dwane, one of the serial entrepreneurs interviewed, \u201cthe most important quality any start-up leader (current or aspiring) can have is adaptability.\u201d To get at that, she asks (and you might want to ask yourself\u2014and reflect on your responses) the following questions:\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">What have you started?<\/li>\r\n \t<li style=\"font-weight: 400;\">How would you describe yourself in your own words?<\/li>\r\n \t<li style=\"font-weight: 400;\">How would a colleague describe you in three adjectives?<\/li>\r\n \t<li style=\"font-weight: 400;\">What current trends are you seeing in your profession? (Substitute your target industry\/market for your profession)<\/li>\r\n \t<li style=\"font-weight: 400;\">What new things have you tried recently?<\/li>\r\n<\/ul>\r\nAdditional questions to consider include Koru co-founder and CEO Kristen Hamilton\u2019s questions regarding grit, rigor, impact, and ownership.\r\n<h2>Your Concept<\/h2>\r\n<em>Do you have a viable concept?<\/em>\r\n\r\nViability is something that will come out of the business planning process, which we will discuss in the next few sections. Before you dive into a business, it\u2019s essential to do careful planning to ensure that the venture has potential to succeed. Jumping in with no information and no plan is a recipe for disaster.\r\n<h2>Your Business<\/h2>\r\n<em>Is the reason you want to start a business consistent with your character and concept?<\/em>\r\n\r\nThe third consideration is doing a reality check on why you want to start a business. Consider Dwane\u2019s opening question: \u201cwhat motivates you and what do you want to do next?\u201d Can you connect the dots? Starting a new small business will require a lot of time and energy\u2014if you\u2019re not truly passionate about your venture, especially when it's new, it (and you!) won\u2019t be able to stand up to the stress of day-to-day business.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/a12e821c-a6e4-4324-b422-9060cd8dbb34\r\n\r\n<\/div>\r\n<div class=\"textbox examples\">\r\n<h3>Starting a Business<\/h3>\r\nStarting a business doesn\u2019t have to be an all or nothing proposition. A number of successful entrepreneurs developed their business concepts while in school or working a traditional job. In his \u201c<a href=\"https:\/\/www.ted.com\/talks\/adam_grant_the_surprising_habits_of_original_thinkers?language=en\" target=\"_blank\" rel=\"noopener\">The Surprising Habits of Original Thinkers<\/a>\u201d TED Talk, Organizational psychologist, professor, and author Adam Grant discusses the mistake he made in passing on an opportunity to one of his student\u2019s start-ups. He assumed that because the founders were working internships while developing the concept and had lined up jobs as a Plan B, they didn\u2019t have the commitment to make the business a success.\r\n\r\nThe business the students launched: Warby Parker, a glasses e-tailer that Fast Company named as the world\u2019s most innovative company in 2016. In 2019, Warby Parker <a href=\"https:\/\/en.wikipedia.org\/wiki\/Warby_Parker\">brought in $250 million dollars of revenue.<\/a> For additional perspective, read Jason DeMers <a href=\"https:\/\/www.entrepreneur.com\/article\/250036\" target=\"_blank\" rel=\"noopener\">The Pros and Cons of Starting a Business While Working A Full-Time Job<\/a> for Entrepreneur.\r\n\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>List important considerations in deciding to start a business<\/li>\n<\/ul>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-8641\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2016\/11\/17185504\/7199498340_83dc0a1364_b.jpg\" alt=\"decorative image\" width=\"349\" height=\"218\" \/><\/p>\n<p>The three fundamental questions to consider when deciding to start a business are:<\/p>\n<ol>\n<li style=\"font-weight: 400;\">Do you have what it takes?<\/li>\n<li style=\"font-weight: 400;\">Do you have a viable concept?<\/li>\n<li style=\"font-weight: 400;\">Is the reason you want to start a business consistent with your character and concept?<\/li>\n<\/ol>\n<h2>Yourself<\/h2>\n<p><em>Do you have what it takes?<\/em><\/p>\n<p>The entrepreneurial assessments discussed earlier this module are a good starting point for self-assessment. Additionally, you might want to <a href=\"https:\/\/angeladuckworth.com\/grit-scale\/\" target=\"_blank\" rel=\"noopener\">take the Grit Test<\/a> developed by psychology professor and researcher Angela Duckworth.<\/p>\n<p>Another way to approach the question is to review the type of questions a founder might ask in an interview and consider whether you would hire yourself. For perspective, scan the questions\u2014and thought process behind the questions\u2014shared by start-up leaders and others in Firstround.com\u2019s <a href=\"https:\/\/firstround.com\/review\/the-best-interview-questions-weve-ever-published\/\" target=\"_blank\" rel=\"noopener\">The Best Interview Questions We\u2019ve Ever Published<\/a>. According to Anne Dwane, one of the serial entrepreneurs interviewed, \u201cthe most important quality any start-up leader (current or aspiring) can have is adaptability.\u201d To get at that, she asks (and you might want to ask yourself\u2014and reflect on your responses) the following questions:<\/p>\n<ul>\n<li style=\"font-weight: 400;\">What have you started?<\/li>\n<li style=\"font-weight: 400;\">How would you describe yourself in your own words?<\/li>\n<li style=\"font-weight: 400;\">How would a colleague describe you in three adjectives?<\/li>\n<li style=\"font-weight: 400;\">What current trends are you seeing in your profession? (Substitute your target industry\/market for your profession)<\/li>\n<li style=\"font-weight: 400;\">What new things have you tried recently?<\/li>\n<\/ul>\n<p>Additional questions to consider include Koru co-founder and CEO Kristen Hamilton\u2019s questions regarding grit, rigor, impact, and ownership.<\/p>\n<h2>Your Concept<\/h2>\n<p><em>Do you have a viable concept?<\/em><\/p>\n<p>Viability is something that will come out of the business planning process, which we will discuss in the next few sections. Before you dive into a business, it\u2019s essential to do careful planning to ensure that the venture has potential to succeed. Jumping in with no information and no plan is a recipe for disaster.<\/p>\n<h2>Your Business<\/h2>\n<p><em>Is the reason you want to start a business consistent with your character and concept?<\/em><\/p>\n<p>The third consideration is doing a reality check on why you want to start a business. Consider Dwane\u2019s opening question: \u201cwhat motivates you and what do you want to do next?\u201d Can you connect the dots? Starting a new small business will require a lot of time and energy\u2014if you\u2019re not truly passionate about your venture, especially when it&#8217;s new, it (and you!) won\u2019t be able to stand up to the stress of day-to-day business.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_a12e821c-a6e4-4324-b422-9060cd8dbb34\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/a12e821c-a6e4-4324-b422-9060cd8dbb34?iframe_resize_id=assessment_practice_id_a12e821c-a6e4-4324-b422-9060cd8dbb34\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<div class=\"textbox examples\">\n<h3>Starting a Business<\/h3>\n<p>Starting a business doesn\u2019t have to be an all or nothing proposition. A number of successful entrepreneurs developed their business concepts while in school or working a traditional job. In his \u201c<a href=\"https:\/\/www.ted.com\/talks\/adam_grant_the_surprising_habits_of_original_thinkers?language=en\" target=\"_blank\" rel=\"noopener\">The Surprising Habits of Original Thinkers<\/a>\u201d TED Talk, Organizational psychologist, professor, and author Adam Grant discusses the mistake he made in passing on an opportunity to one of his student\u2019s start-ups. He assumed that because the founders were working internships while developing the concept and had lined up jobs as a Plan B, they didn\u2019t have the commitment to make the business a success.<\/p>\n<p>The business the students launched: Warby Parker, a glasses e-tailer that Fast Company named as the world\u2019s most innovative company in 2016. In 2019, Warby Parker <a href=\"https:\/\/en.wikipedia.org\/wiki\/Warby_Parker\">brought in $250 million dollars of revenue.<\/a> For additional perspective, read Jason DeMers <a href=\"https:\/\/www.entrepreneur.com\/article\/250036\" target=\"_blank\" rel=\"noopener\">The Pros and Cons of Starting a Business While Working A Full-Time Job<\/a> for Entrepreneur.<\/p>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-948\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Considerations When Starting a Business. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Decision. <strong>Authored by<\/strong>: Bill Collison. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/billcollison\/7199498340\/\">https:\/\/www.flickr.com\/photos\/billcollison\/7199498340\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc\/4.0\/\">CC BY-NC: Attribution-NonCommercial<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":78,"menu_order":13,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Decision\",\"author\":\"Bill Collison\",\"organization\":\"\",\"url\":\"https:\/\/www.flickr.com\/photos\/billcollison\/7199498340\/\",\"project\":\"\",\"license\":\"cc-by-nc\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Considerations When Starting a Business\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"9aca5732-5ed4-4115-a727-60963d791d99, 1257f515-ede2-463b-8b2c-78d2e1741a5a","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-948","chapter","type-chapter","status-publish","hentry"],"part":87,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/948","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/users\/78"}],"version-history":[{"count":40,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/948\/revisions"}],"predecessor-version":[{"id":15354,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/948\/revisions\/15354"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/87"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/948\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/media?parent=948"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=948"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=948"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/license?post=948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}