Dear Dr. George:

I am thinking about starting my own business. I do not like my job and know I would be happier on my own. Do you have any thoughts for me?

Signed,

ASPIRING ENTREPRENEUR

This is part three of a previous article in which someone, ASPIRING ENTREPRENEUR, asked about the necessary components for success as a business owner. I suggested four advisable traits:

1. You should have an entrepreneurial mindset.

2. You should be an effective planner.

3. You should be in fairly good financial shape.

4. You must put ethics first over money.

This column covers trait three: you should be in fairly good financial shape.

Do you have a good credit rating?

Are your credit cards paid for on a monthly basis?

How about your basic living expenses? Are they under control?

Do you live above your means? To start a business, you should not live within your means but beneath them.

Family businesses can be rife with turmoil, as one family member may take advantage of another in a family owned company. In some respects, family businesses can be the hardest of all to maintain good morale, as some people may be prone to exploit their relatives.

Do not immediately hire if your business cannot afford employees. If you do hire, start them out on a part-time basis. Or offer them some type of incentive based solely on productivity or sales.

Where do you plan to get capital for your business if it requires inventory, equipment, labor, etc.? Are you familiar with the Small Business Association and its services?

Do you have a good relationship with your local bank?

Do you have enough savings to get you through at least eight months without income?

Are you and your family covered by health insurance? If you or your family experiences one major sickness, your hope of being an entrepreneur could be shattered.

Is your spouse working in another company to offset your diminished income in the beginning? Can he or she include your entire family on his or her company’s health insurance plan.

Have you talked to an accountant concerning what your monetary needs will be and how you will fulfill them with your new venture?

Do you have a budget prepared to reflect your financial needs for the next year, as you initiate your venture?

Are you willing for you and your family to forgo the security of the full-time jobs one or both of you have in order to start this venture? Are you ready to sacrifice some of the comforts you now have to create this new enterprise?

If you are well prepared, your business and your mental health will fare much better. Never quit in your own time. If you are wise, you will keep your job, continue to work in a superior manner, yet take non-work time to plan your eventual departure.

Planning is key to getting the right start to keep your business smart.

Dr. George Abraham is a business consultant author of “The Seven Deadly Work Sins Against the Golden Rule.” He also formally served as an adjunct professor at Hofstra. Email confidential questions for advice to [email protected].