Homework. It’s not something everyone likes to do, but when it comes to opening a small business, doing your homework is vital. Why?
So, whether you’re still dreaming of starting your business, or you already have a business plan and funding lined up, here are some questions you need to answer before starting your small business.
1. Why Am I Starting a Business?
We all have our own reasons for wanting to start a small business - to be our own boss, to offer a unique product, to build a business from the ground up, to be an entrepreneur - the list goes on and on.
2. Do I Understand the Ins and Outs of the Industry?
You’re passionate about your business idea. As such, you probably have a good grasp of the industry you’re entering.
3. Is My Business Plan Flushed Out?
You can’t talk about starting a small business without talking about a business plan. Sound daunting? It doesn’t have to be complicated, but you do need to have one. And, you do need to spend time flushing it out.
4. Am I Confident in the Financial Plan?
Starting a business costs money, and even the most successful businesses take a period before turning a profit. How much do you need to get the business up and running, and how will you pay for it?
Whether you are using savings, investors, or loans to finance your business (or a combination of the three), do you homework to understand if you have enough for start-up costs and operations.
5. Do I Have a Marketing Strategy?
You can have the best business idea in the world, but if you don’t have a plan to market it, your business will fail. While it can be hard to earmark limited funds toward marketing, it is a smart investment.
6. What Staffing Do I Need?
If you’re like a lot of small businesses, you may be the sole employee for a while. Other small businesses, however, need staff from day one.
7. What Loops Do I Need to Jump Through?
The last thing you want to do is get ready to open your business, only to find out you need additional licenses or permits. It costs you time and money. As you do your homework, research any legal or permitting requirements for your line of work.
There are infinite questions an entrepreneur has to answer before starting a business. Among them few questions are more important than the others. These questions are quintessential to commence a business.
1. Do you have the required capital? No business can begin without an investment. If you don’t have the money to get your business started then unfortunately it will never start.
2. Is your idea good enough to drive business? All business ideas do not materialize into profitable businesses. So one of the most crucial things to ask and evaluate before commencing a business is, is your idea useful? Does it have good value to offer to its potential customers?
3. Who are going to be your competitors and what will be your edge over their goods/services? If you are going to enter into an industry where there are existing players, then you have to first evaluate their strengths and weaknesses. Then you have to evaluate what additional benefit or service are you going to offer to customers so that they choose your commodity over the offerings of the existing players.
4. Do you have all required resources? Money isn’t the only requirement to run a business. A business requires employees, space, raw materials, mode of transport and various other resources. Before beginning a business, evaluate all the needs of the business and ensure that you have them.