This is something that only you can answer, but as a rule of thumb, you should aim to start something in a field you’re familiar with. Think of any business that you startup as an investment of your own human capital. You could be using your talents to generate money working for another company, but you’ve decided that you’ll get the most return by opening a company. You wouldn’t invest your money in stocks or other investment vehicles that you’re not familiar with, so it doesn’t make sense to do that with your own strengths. Picking a business in a field that you’re already well-versed in will offer the path of least resistance to starting a business, even if it’s not necessarily always a smooth path.

The age-old question of how much money is needed to start a business. A good idea is to try to project out what your expenses for the first year will be, as well as how long it will take you to become profitable. There are a lot of failed entrepreneurs out there who took out loans or home equity lines of credit, only to realize that it wasn’t enough and have to begin bootstrapping their business. Although some companies survive such debacles, it’s not one that you want to subject yourself to in the first place. Perform a cost analysis and you’ll avoid this highly preventable headache.

Deciding on this depends on personality type as well as the amount of capital that you have available. If money is no object and you’re looking to begin a business in a market where there is an established franchise, then purchasing a license to open a franchised company can get a very reasonable path. However, franchising is not without its drawbacks. You’ll invest a lot more money in the beginning, you won’t get a choice over a lot of the minor details in your company, and you’ll virtually never able to keep all of your profits. If you’re considering franchising, make sure that you thoroughly review every detail and assess whether you’re okay with giving up that much control.

For financing your company, you can look to the bank you already do business with. If that’s not an appealing option, then there are a couple of other common avenues. One is “angel investors,” who often invest in new companies in exchange for equity in the business. The other option is to borrow from friends or family who believe in your company, although this is a slippery slope to climb.

A lot of businesses surprisingly require very little licensing, but you’ll want to ask directly – nothing sinks a business faster than finding out that it’s operating illegally. Make a visit to your local city hall and find out exactly what permits are required if any.

A general rule has always been that it takes around a year to begin turning a profit. With that said, changes in technology and communication make it very easy to start a company with virtually zero overhead, especially in a service-driven economy. This is where the importance of a business plan really shines, as it will let you project when you become profitable.

To a certain extent, yes. If you’re just planning to operate a small consulting service out of your home office, then there’s no need to take out a business loan to buy a laptop and some pens and paper. However, when you’re talking about a business with large start-up costs, it’s typically not wise to finance out of pocket. First, you’re putting a lot of money at risk when most small businesses take their time on becoming profitable. Second, financing out of pocket means you skip investors. Interestingly, these are one of the best fail-safes for your company. Think about it – investors are the ones who really understand money and business. If they approve of your business, it’s a good sign that you have everything in order. If not, then it may be time to head back to the drawing board.

Even if you have a few ideas for companies, start with one and keep it basic. You can diversify later on, but the short-term goal is to become as stable and profitable as possible with one.

The short answer is yes, and the long answer is yes. Writing your own business plan has a couple of primary benefits. First, it will help you gain a better understanding of your business. Although you may feel confident that you already know how your business will function, sitting down and writing out an entire business plan will prompt you to think about even the most minor details. It will also be beneficial for when you begin seeking investors, as you’ll be able to better articulate what your business will do and how it will become profitable.

Like the first question, the answer to this one hinges on the type of business you’re looking to start. If you require a storefront of some sort, then the answer is an automatic no. However, if you’re doing work where you don’t need an area for clients or customers to come see you – such as an online business or one where you meet clients in the field – then home is a viable option. It’s actually a great tool to save money, too. Just make sure that there aren’t any licensing laws prohibiting it.