One of the biggest mistakes that aspiring business owners make is overlooking the importance of digging deep into what their true motivations are for starting a business and if their life is truly ready for this change.
They get so busy in trying to figure out the logistics involved in getting their idea off the ground that they don’t pay attention to some of these very vital aspects that are crucial before you launch your business.
If you’re thinking of starting any business, then there are many different things that you will want to consider. Starting a business isn’t a simple task, and jumping in without doing the necessary research is never a good idea. So, before you decide to start a business, be sure to ask yourself the following ten questions.
1.What type of business would you want to own?
This is the first question you need to ask yourself before starting any business. There are typically two types of people who want to start their own business: those that know exactly what they’d like to do, and those that don’t have a clear idea of what they want to do.
In order to ensure success, you need to have a clear, definite idea of the type of business you’d like to run. Otherwise, you risk getting in over your head and being unable to define a clear path for your small business.
2.Who are your target customers?
Choosing your target market is extremely important, as it will help you to figure out how to approach marketing and actually selling your product or service. Consider what your target customer wants and what they are like. It’s important that you enjoy working with the type of people in your target market.
3.How Passionate do you feel about the Business
Your desire to escape the typical office setting is a good motivating factor to start a business that you can call your very own. However, that desire is not enough to help you to withstand all the challenges that you may encounter as an entrepreneur along the way.
You need to truly love what you are doing to be excited about the business that you are going to start. Even if you love to design dresses, you cannot assure yourself that you will love running a boutique. They are absolutely different categories.
You don’t have to be passionate about the product. What really matters is that you have to be passionate about running the business for it to become a success.
4.What Services or Products will you be Selling
This should be one of the first things that you should figure out before beginning to launch your business. Figuring out what you’re going to offer goes hand-in-hand with determining who your target market will be
5.What is your UPS?
USP stands for Unique Selling Proposition. If you are entering a competitive market, your product or service will need something that will distinguish itself from its competitors. This USP is what you will ride on; what will help you sustain the initial costs and also what will help you make profit.
However, it does not take very long for competition to catch up, and you will have to keep thinking up new USPs or revising them all the time. Your USP should be your competitive advantage.
6.How will You fund your Business
This is another important question you need to find an honest answer to. Every business needs start-up capital. How and where will you get yours? Will you dip into your personal savings or get a loan from the bank or somewhere else?
It takes a year or two, sometimes even more, to start bringing in money. It typically takes twelve to eighteen months to break even, and two to three years for profits. Do you think you are financially prepared for this? Do you think you are ready for giving up a steady check?
The amount that you’ll need to start up your business depends greatly on the type of business you want to own. Will you need a store, or can you work out of your home?
Will you need employees, or can you do it on your own at first? Carefully evaluate exactly what you’ll need financially to get started, and then determine where these funds will come from.
7.What is Your Growth Potential?
Do you see yourself making expansion plans, adding services and products, diversifying? If you wish to sustain and compete, you will need to keep growing. Some businesses do make it big doing exactly what they did when they began but these are very rare.
And also, it takes the main purpose out of business – Growth. It is essential that your venture be such that can expand in many directions; that you can build on. This is what will give you a competitive edge all the time.
8.What Strategies and Tactics Will You use to find Leads?
More than anything, you need to hit the ground running. You need to find potential customers fast so that you can make deals happen. My advice is to delay building your marketing materials – including your website, brochures, and tools – until you know where and how to reach potential customers.
9.Are You good at Dealing with People?
This itself is a skill that you need to learn if you want to succeed as an entrepreneur because not everyone knows how to deal with people.
10.Can you Handle Failure?
Statistics show that within the first five years small businesses fail at a rate of 80% and only 20% of entrepreneurs tend to succeed in their undertaking. So, ask yourself if you will be able to live with failure since not everybody will have the luck to belong to the 80%. And also, will you still have the strength to start all over again?
If your answers to all these questions are positive, then go ahead and embark on a journey that would bring more cash to your bank account. Be an entrepreneur!