Starting a new business is not a walk in the park, especially since there are tons of factors to consider. Can you afford it? Does the world need you? Can you fill in a niche that will get you noticed? Small business owner Jason Geno started his own business in 2003 and never looked back. It took a lot of time and effort, but he learned a lot along the way. Below, he shares what he learned about what it takes to take the leap and open his own business.

What Do You Love?

“I chose an area I loved—consulting and advising—and then pinpointed a specialty and market that required those services,” says Geno, the owner of a company that now brings in over a million dollars in revenue a year. When Geno was considering opening his own business, he looked for a gap in consulting services. He found that many consulting services were available for large companies, but not really any for mid-sized companies, which helped him target his market. Not only did he love the market, he was good at it, too; it was a meant-to-be situation.

Find the Niche Market

“If you come up with an idea for a consignment store for teenagers and you can’t find any in your market, either you’ve got a really good or really bad idea—which is where market research comes in,” Geno advises.

Market research is often a long process, but a cheap one. You can use the SBA’s statistics page, the US Census information, and Fed Stats as well. All of these are free resources to see if a company like yours has failed in your area already or if you’re heading down the right path to success.

Don’t Forget Finances

“Lay out your financial plan for the first 12 months, including your costs, projected income and growth and see how long it’s going to take you to see a profit,” says Geno. Choosing the right business is a great start when you’re thinking about entering the market, but it’s just as important that you analyze how much it’s going to cost to get into the market as well. If you find out that you can afford it, start looking into how you can pay for it, including taking out loans, credit cards, or borrowing from family.

Photo Credit: Michal Zacharzewski