Time for a Leap of Faith?

As the economy started to decline many months ago, several acquaintances told me they would implement their business ideas once we had a new president in the White House.

You know--complete the invention that never came to fruition, start the business they've dreamed of owning, break away from the ties of an employer and finally become a free entity. In other words, they want to be master of their own destiny with no interference from anyone.

I would advise against making the election of a new president the impetus for self-employment. The right time to start a business is when you have time, energy--and a really good idea.

Wall Street and the economy in general have alarmed all of us with tens of thousands of layoffs and countless businesses terminated because consumers aren't buying. Cautious we may be, but as a society, we're still spending money. Granted, cash flow is limited, but a great idea is still a viable option. This may be the perfect time in your life to pursue your dreams. If you can survive our current economic climate, you'll most likely survive any catastrophic situation that might come your way.

Is Your Idea a Winning Concept?
I always recommend that my clients have security and a stable business plan prior to making a huge leap of faith. You can implement practically any idea on a shoestring budget, but you'll need savings, good credit and a solid plan to start. The next step is to put your idea on paper to determine whether it's a successful concept. Ask yourself these questions:

1. Is the idea workable?

2. Do people need what you're selling?

3. Is a large population going to use what you're selling or are you targeting a niche market?

4. Do you know a lot about the subject matter or product?

5. Will you be home based or a storefront?

6. Do you have the funds for deposits, inventory and staffing?

7. If you run out of money, do you have savings to bail yourself out?

8. Is this more likely to work with a partner or another individual who can assist you in the work and expenses?

9. Are you better prepared to begin the business now or wait until you are in a more desirable position?

10. If you begin the business now, can you do it the right way or will you be cutting corners?

11. Do you have the support of family and friends?

12. Can you live without your current income while you develop your idea?

These questions will provide you with telling answers as well as a reasonable expectation of success or failure.

Be Honest With Yourself
The key to making a business idea work is to be honest with yourself. A client of mine recently came to me for counsel regarding an idea she'd been considering for years and was finally ready to dive into. With her kids in school, she had the energy to pursue her concept with great gusto. She planned to write and sell children's books. On paper she had 17 characters named and designed with adorable sketches. She said she just needed me to draw up the papers to establish a corporation.

Having written two books myself, I had more than a vague notion about what the endeavor could cost her. I inquired about her graphic artist or illustrator, the cost of publishing a cover design, and book marketing and distribution. She was appalled. She had assumed that professionals would work now and get paid once the book began to sell.

I explained that these were upfront costs with no guarantee of success. I also asked whether she had done any research regarding other children's books on the market, and she admitted that had not occurred to her. I took her to the local Barnes & Noble, where we found a book very similar to her concept. That permanently grounded her idea. The moral to this column is to think smart and economically. Initial research costs little or nothing. Get an idea as to what you're most passionate about, and then evaluate the likelihood that you can make it work.

Many of us have a million-dollar idea that we let go, only to watch someone else make a million on the concept later. Should you abandon a good idea that you can't finance? Not necessarily. If the idea has the potential for success, you can get partners and funding.

The key here is to be sure that the business will sustain you through the economy's transition. If it works now, you'll have peace of mind knowing that you did it--and that you did it well.