Starting a business involves careful planning and understanding. There are many questions that need to be asked and responded when you start a business. When you provide answers for these questions you will have the confidence. It will show what resources are required to start a business. If you provide answers for the questions you will not be confused once the business is started.
Following are the questions you need to ask before starting your business.
Reasons for Starting a Business: What are your reasons to start a business? You need to briefly describe your motives or reasons to start a business. Describe why you want to be an entrepreneur. List your purposes to start a business.
Business Idea: Do you have a clear business idea? Is there unfulfilled need in the market? Can the business idea be converted in to business plan and action? Which business are you going to start?
Identify Customers: Who are your customers is one of the questions that you need to ask yourself. Identify, select and target your customers to be successful.
Identify products and services: What are your products and services? Describe your products and services available for the market.
Business Plan: Do you have the ability to prepare the business plan? If not can you find someone who can prepare same for you? Does your business plan reflect business idea, products and services?
Spend Time and Money: Are you sure to spend time and money to start your business?
Product /Service Uniqueness: What differentiate your product or service from others? List down what makes your product or service unique from others. Express the unique features of products and services.
Business Location: Where is your business location? Identify your business location based on market availability.
Employees or Workforce: What type and number of employees do you demand? Determine the number and type of professionals you require.
Supplies: What types of supplies are you requiring? Identify the supplies that you need to start your business.
Raw Materials: Do you have the necessary raw materials? Where are the sources? Do you know the price of the raw materials?
Money: How much money do you need? Express the amount of money you need to start your business.
Loan: Do you need loan and how much? Describe if you need loan and the amount. Also describe the sources of loan.
Time: How long will it take to market your products and services? Describe the time it takes to make your products and services available for the market. How long will it take to make profit? Describe the time it takes to generate profit.
Profit: How much profit are you going to make? Describe the amount of profit you are going to make within a specific period of time.
Competition: How is the competition in your business surrounding? Asses your competition and identify your competitors. Offer better products and services than your competitors.
Price: How do you set your price? Price your product based on the cost, competition, etc
Legal Structure: What type of legal structure will your business have? Get advice to determine the legal structure of your business.
Taxes: What types of taxes do you pay? List the types and the amount of taxes you are going to pay.
Insurance: What types of insurance do you require? List out your insurance requirements.
Promotion: What types of promotional methods do you use? Describe the proper types of promotional methods for you business.
Ability: Do you have the ability to accomplish your goal? Express capacities, talents, and gifts you have that assist to run the business.
Interest: What are your interests with respect to the new business? Describe your desires explicitly. Describe your hope, expectation and what you want to attain.
Vision: Do you have vision? State your vision. Describe where the business should be in the next one, three, five, ten years time. Also express the courses of actions to get there.
Financial Goal: What is your financial goal? State whether it is self employment, employment opportunity for others or to have financial freedom.
Characteristics of Entrepreneurs: Do you have the basic qualities of entrepreneurs? You need to have the determination to take your dream to completion. Be ready to take calculated risk.
Various Skills: Do you have the courage to have many skills at the start up of the business? When you start your business you may not have the required resource to employ skilled man power. Therefore you are forced to carryout various activities by yourself. You are supposed to be a Manager, Book Keeper, Sales Person, Secretary, Purchaser, Marketing Person, Cleaner etc.
Working Alone and Long Hours: Are you ready to work alone and for long hours? At the start of your business you may not have the required assistance. You may not have people around to support you. So you need to prepare yourself to work without any help. You also need to prepare yourself to work for long hours and long days without rest.
Flexibility: Are you flexible enough to adapt to the changing situations? You need to be flexible and ready to capture changes. Train yourself to respond to the changing situations of the market. Observe opportunities when others do not and snatch and apply it.
Risk: Have you considered the risks associated with your business? Do you have escaping plan if the worst happen?
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