Economic Goals

Obviously, you want your business to be a success. But how you define success depends on a number of personal factors. Assuming you've been in the work force for a while, you know what kind of lifestyle you can afford on your current income. If you're like most people, you'd probably like to earn more. Many people feel that self-employment is the way to do it.

On the other hand, if you're just starting out and prefer running your own business, these factors probably won't affect your decision to any great extent.

Sometimes, it's economic pressures that cause a person to consider opening a new business:

• Increase earnings — Some people believe working as an employee in a corporate setting limits their earning potential, and they want the chance to make the kind of money they feel they deserve.
• Replace earnings — Some people have been downsized or right sized, or whatever it's called these days, and they need to replace their lost income.
• Supplement earnings — Changed family circumstances may require a second source of income, which translates into a part-time business.

In setting economic goals, remember that most businesses don't immediately produce profits for the owner. Be realistic about how long it will be before your new business becomes an established and secure source of income. And, be realistic in figuring out how long you can survive with your new business operating at a loss.