There are many issues to consider before deciding to start a
business:
Your Personality - Not everyone has the required personality traits to thrive as a business owner. Aside from extensive knowledge about the particular industry, to be successful as a business owner requires self-motivation and a variety of organizational, management, and marketing skills, as well as the ability to deal with customers and vendors. See Do You Have the Characteristics of an Entrepreneur? for more information. Think you’re ready for starting a business but are concerned about whether or not you have the "right” traits and attitudes to be an entrepreneur
- Your Financial Situation - Your financial situation is a key consideration when determining whether to start a business. How much risk can you tolerate? If you are currently in a stable employment situation and have a family do you really want to strike out on your own? (Providing you have a good relationship with your current employer one way around this is to see if they would consider a contract arrangement. Starting a new business can also take significant amounts of startup capital if you have to purchase equipment, rent/lease business space, and hire employees - do you have savings or access to funding from family, or the ability to secure debt financing from a lending institution or equity financing from angel investors?
- Effect on Family - If you are married be aware than running a business is a family affair. Aside from the family financial considerations stated above starting a business generally requires much more of your time than regular employment (and will likely continue to do so for years). The time commitment and the associated stresses and uncertainties of running a business can place an undue strain on family relationships. Note however, that involving family members in your business can also be very beneficial. Aside from providing trusted help employing your spouse and/or children has great tax advantages. There are additional benefits if your business can be operated from your home.
