5 Questions to Ask Before Starting a Business

5 Questions to Ask Before Starting a Business

Are you sitting on a great idea for a business but not sure if you're ready to take the next step? Every entrepreneur has been in your shoes before and that's why we've compiled a list of five questions every person starting a new business should ask themselves to see if they're ready. You may be closer to quitting your job and striking it on your own than you realized.

  1. Does my product or service fulfill a need in the community? 

    If you’re going to start your own business you need to figure out how it will make money – and that means figuring out who your customers are, why they want your product, and where they’re willing to buy it from. Be aware of your community and what they need – preferably stepping in to a market that has little to no competition.
  2. Am I ready to do this professionally for the foreseeable future? 

    You may enjoy baking a batch of two of cupcakes at home every Christmas, but that does not mean that you’re going to like churning out 3-400 every day when your business takes off. Successfully running a small business takes plenty of time and effort, and who wants to spend their time and effort on something they don’t love?
  3. How much will it cost to get started?

    One of the biggest mistakes you can make is to decide that you can “wing it” with the money, and just figure it out as you go along. Once you’ve found your market and have resolved yourself to sticking with your business, the most important thing you can do is to create a solid business plan. A business plan is a road map for your business, and will help you every step of the way.
  4. Where am I going to get the money I need to get started?

    If you’ve done your homework up to this point you have a realistic idea of how much your business will cost to get started and what the return on the investment will be. Bankers and other investors will be much more likely to entertain your proposal.
  5. What’s Plan B?

    Nobody wants to think that maybe it won’t work – but part of smart planning is to know where the exits are. Come up with ways to scale back your business – or even put it on hold- during rough times. It’s better to be small or to go on hiatus than give up completely.