3 Questions to Ask When Starting a Business
When you’ve got a great idea for a business, it can be difficult to contain your excitement, step back, and turn on your analytical side. How do you know your business will be successful? What’s it going to take from you and the people around you? It might seem simple, but building the proper foundation of thought to cushion the idea will save you so much time and money in the long run and the best way to do that is to start asking those hard-hitting questions. Here’s a solid list of three to get your analytical brain churning.
What unique products or services will my business provide?
The most important, and perhaps on the nose, question to ask when starting your new business is whether or not you’re bringing something new to the market. Your idea won’t be sustainable if someone has already capitalized on it. One thing to consider here is market inefficiencies. For example, someone might have already had your idea, but it’s missing a few pieces. If you can see what those inefficiencies are, you can more successfully find a place for yourself in the industry you’re attempting to join or expand within.
Who is my ideal customer?
Once you know whether or not your idea floats, you have to ask yourself about who you’re serving. One of the most complex quandaries for even well-established entrepreneurs is generating qualified leads. Get a head-start by determining who that ideal customer is for your product or service. There’s nothing worse than having to sift through terrible leads to get to the one person who is actually ready to purchase. So, how do you start? First, you’ll want to make sure the definitions of your product or service are unambiguous. From there, engaging that specific audience with content like a website or blog that answers their questions and targets their concerns will make a world of difference.
Am I prepared to spend the time and money necessary to start this business?
Starting a business requires a lot of time and money, of course, but are you ready to put forth the effort? Drafting a business plan is an efficient way to get a sense of what’s all going into the process of fleshing out your idea and making it a reality. Your business plan should include a budget not simply for starting the company, but for managing daily and monthly expenses, not to mention how many team members you can afford in order to delegate out some of your responsibilities. We all know that time is money. So it’s always going to come back to money. Knowing exactly how much capital will be required to develop your idea will save time and save your finances.
What questions do you find valuable when analyzing whether or not a business idea will sink or swim? Share your thoughts in the comments, we’d love to have more voices in this dialogue!