Starting From Scratch: the Critical Questions You Need to Ask Before Pursuing Your Own Business
Having your own business is a dream that is worth fulfilling. Before you get started on your business venture, there are certain questions that you will need to ask yourself. That is what we shall be discussing this day.
There are a lot of businesses that gets started every year but not all of them survive. This is mostly due to the fact that some business owners do not have a good handle on what to expect and what can change. This is why before you start a business, it is important to ask yourself these questions:
What is my product?
The very basic thing you must identify is what you are trying to put out into the world. Are you selling a physical product? Are you selling skills (own or others)?
Understanding the product will automatically provide you a stronger idea of what else you need to consider:
- Where to house your product
- Who to involve in the planning
- Is your product worth investing in
These will allow you to consider if your planned business should be pursued and when to start pursuing it.
What is the current status of the funds for the business?
Once you have determined what your product is, you can start to surmise how much it would take to get your money off the ground. Are you planning on building a brick and mortar shop? Are you aiming to do an online business? A business takes a lot of money to get off the ground.
Therefore, knowing where the money should be coming from like (years of savings, bank loan, or a friendly loan) should be clarified. Having a clear idea where your starting money will come from should help set what your ideal profit margin is in order to recoup the money that was put in. It is critical for any potential business owner to separate the funding for the business from personal expenses like your home or your car.
What are the risks and the rewards?
In order to determine if juice is worth the squeeze, you have to really give the overall business plan a cold and hard look from afar. It can be easy to be swept away by all the planning and it is also just as easy to be personally entangled with a business. A lot of business owners akin their business to their child.
However, this often blinds owners from the faults and overall liability that their business may present. If you saved a lot of money, it is important to determine how much you are willing to spend toward your business? Is it something that may end up swallowing your savings? When venturing into business it is important to have a very real assessment of the risks and rewards of your business.
What are your limits?
Just as it is crucial to find out what your product is and building your business model, it is important to identify your limits. There should be a clear threshold that your business must not dip toward and if it does, it would be better to pull the plug and salvage what you can.
It does not make any sense to keep beating a dead horse. In order to avoid that happening to you, write down some very real hard limits.