Every year, many people decide to turn an idea into a business, and many of those businesses close within a few years. The experience of small businesses around the world points to two things that make a difference: how well the founder prepares, and why they start in the first place.

Before you launch, ask yourself these four questions.

1. Are you ready?

Moving from employee, partner or student to owner changes everything. You decide everything now, from office supplies to your product range. That freedom is what attracts many founders, and also what overwhelms them: the list of decisions never ends, and new questions arrive every day.

In a small business you wear many hats. Even with a first employee, each of you will play several roles; alone, you are the salesperson, the accountant, the cleaner and the manager. Can you switch from one task to another all day long?

Prepare the people around you as well. Your life will change, sometimes a lot, and starting is much easier when your family and friends support you.

2. Where is your niche?

Many businesses fail because they try to sell to everyone. Large chains can sell everything from peanuts to paint, but that takes resources a small business does not have. Small businesses win by choosing a niche: a precise group of customers they serve better than anyone else.

Knowing your niche helps you find, convince and keep your customers, and design exactly what they need. That focus is one of your best chances to survive and to grow.

3. What is your plan of action?

The planning you do before opening your doors, online or in a shop, weighs heavily on what follows. Will you sell online, in person, or both? Full-time or part-time? Alone or with help? Have you written your business plan, even a short one? Thinking and planning now saves time, money and stress later, when everything moves fast.

4. Who will you call when you need help?

Sooner or later, every founder needs help: advice, tools, information or support. Growth can take you to places you never imagined, and the unexpected will happen. Asking for help is not failure; failure is closing because you did not get the help you needed.

Build your support network while you build your business:

  • reading: newsletters, magazines and books about your field
  • people: advisers, mentors, coaches, trainers, consultants and accelerators
  • networks: associations, forums and professional groups in your niche
  • training: tutorials, courses and workshops