Small Business Planning

Questions to Ask Yourself Before Starting a Business

Have you ever thought about starting your own business?  Nowadays, there are so many blog posts and articles about how to quit your day job and become an entrepreneur, but not many about how to know if you’re ready.  While leaving your 9-5 and starting your own business can be fun and exciting, you must have what it takes.

If you’ve been thinking about whether the entrepreneur life is proper for you, here are 5 questions to ask yourself before starting a business.

1.  What value will my business add to the marketplace?

This is the first of many questions to ask yourself before starting a business: What makes your business unique?  It would help if you offered something cheaper, better, faster, or with better technology than what’s already on the market.  If your offering isn’t challenging what’s already out there, you’ll have difficulty overcoming the competition.  Warren Buffett, the legendary investor, only puts his money into businesses with a defensible competitive moat.  That’s evidence for a critical lesson to entrepreneurs.

2.  Do I have the resources I need?

Starting a business requires an initial investment of time and money.  You should be sure you have access to enough cash to sustain you at least through the first six months, if not the first year.  This is especially true if you plan to quit your day job right away, as you won’t have a guaranteed source of income until your business gains traction.

Think about the resources you have at your disposal, no matter what.  Maybe it’s a relevant degree, a substantial savings account, or a rock-solid support system.  Successful entrepreneurs have many skills and knowledge to help them survive the rocky few months of starting a business.

3.  Who is my target audience?

I want you to know that knowing your prospective customers is essential to succeed in your industry.  You need to know who your ideal client is, their needs, where they are in life, how they think, and how your product or offering can solve their problems.  Here’s a pro tip: Clearly define who isn’t your target customer.  This exercise will help you with clarity.

4.  What does the future look like?

One of the most critical questions to ask yourself before starting a business is whether your idea has a sustainable future.  How mature or developed is my market?  Is there potential for consolidation, tech revolution, or market evolution?  Is there an opportunity for your business to grow and evolve, or will your idea become outdated in a few years?

5.  Do I have what it takes?

It takes a specific type of person to become an entrepreneur.  You need to be okay with uncertainty and be willing to persevere through the highs and the lows.  Ask yourself: Am I durable and committed enough to do what it takes to start and develop a business?

Another question to ask yourself is this: Do I have the active support of my family?  Starting a business can put a strain on your relationships.  Be sure you either have the support of your loved ones or are determined enough to succeed without it.

Starting a business can be rewarding, but it’s not easy.   Considering these questions before starting a business is a great start. Download my free ebook, The 10 Critical Responsibilities of a Business Owner, to learn more about the needed skills to own a business successfully.

Coach Dave

 

10 CRITICAL RESPONSIBILITIES OF A BUSINESS OWNER

LEARN MORE about the book or fill out the form below to download it.

Follow Dave
Dave Schoenbeck

Dave Schoenbeck is a professional business and executive coach who translates complex business methods, processes, and strategies into actionable plans to dramatically improve financial results. Read more about Dave here.

Share
Published by
Dave Schoenbeck

Recent Posts

Key Consumer Behavior Trends Shaping the Market

Learning how to identify trends in consumer habits is an invaluable skill for a business…

2 days ago

Here’s Why Entrepreneurs Need to Understand Customer Insights and Analytics

I’ve always championed going beyond customer satisfaction to achieve customer delight. When we try to…

1 week ago

Effective Crisis Management Strategies for Entrepreneurs

How well do you handle emergencies as a business owner? An adaptable entrepreneur considers crisis…

2 weeks ago

Successfully Navigating Supply Chain Disruptions

Business owners can face unprecedented disruptions to everyday processes when the future feels uncertain. An…

3 weeks ago

How to Create a Customer Referral Program for Your Small Business

Customer referrals are indispensable if you want to grow your customer base organically. A referral…

4 weeks ago

Tips for Maximizing Marketing ROI for Your Small Business

Why is marketing return on investment (ROI) so difficult to measure? The truth is that…

1 month ago