Questions about your business that you should answer before starting

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Now that you’ve made the decision to start your own business, the next step is to answer questions about  your business. However, before starting, you must get your mind in order. Here are some questions that, if you answer them honestly, will help you to make the right decision.

Entrepreneur Bob Adams suggests that before starting your business, you should answer the following questions about your business:

  • How much cash will I have at risk? Most start-up businesses do not have a positive cash-flow from day 1. You need enough cash to cover the costs of running the business as well as for your own use.
  • How much time will it consume? As a business owner, you’ll be your own boss. The days of working nine to five are gone. Little sleep and lots of time management will be your daily routine, especially when starting your business.
  • How much energy will it take? Starting you own business may quickly drain your energy. Take care of your physical condition and try not to start when you aren’t feeling well. Otherwise, involve other people to share the workload.
  • Do I currently have other obligations that will prevent me from giving the business 100 percent? Monies you owe, legal disputes, prosecutions and extraordinary family obligations my take too much of your time and drive to start your business successfully.
  • Would there be a much better time for me to start a business other than now? The timing of starting your business has to do with your own readiness and how long the business opportunity in the market will exist.
  • What are my alternatives if I don’t start a business now? The answer many of us have to give to the people closest to us. Your family is probably battling with the same aspirations and concerns as you – and are likely to support the status quo.
  • What are the chances of success? If starting a new business will realise a ‘lifelong’ dream, or you’ll be doing something that you enjoy and are good at, then changes of success are higher. However, success will still require a lot of work and sacrifices.
  • Am I looking at starting a business from a position of relative strength – feeling good about myself and feeling I am relatively well off – or am I looking at starting a business from a position of relative weakness – recently laid off from a job and being behind on my bills? Losing your job is difficult for many of us. However, finding another or better job may be sometimes even more difficult. Starting an own business is for many people the last resort to get an income. The big challenge will be to change from desperate to positive and thinking success like an entrepreneur.
  • Can I test-run the business part-time before quitting my job? Having the luxury to test-run your business is the prerogative of only a few. Market research and a business plan may answer most of the issues regarding your new business.
  • Should I choose between a higher-risk or lower-risk businesses? It depends on whether you love the challenge to take risks or if you rather avoid it. A new business owner is by definition a risk-taker.
  • Suppose my business provides less income than I expected. How long should I stick with it? Unless you’ve made an obvious disastrous decision by starting the business, it is best analyse your business’s current situation and find a strategy to turn it around.
  • If the business doesn’t work out, how easily will I be able to pick myself up and move along to the next endeavour? I suppose for most of us, it won’t be easy. However, by doing the right things (planning, leading and controlling), the chances of failing may be lessen.

Concluding

It’s a “hell” of a decision to start your own business. You should sell your business idea and your own capabilities to those closest to you. But more importantly, you must believe in yourself. Asking these questions about your business will help in this regard. Good luck with your new business!

Remember, you need a well researched and written Business Plan to get your business off to a good start! And getting questions about your business answered…

Read also:

What is keeping you from starting your own business?

Image: eBizplan

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Published by

Douw G Steyn

Douw G Steyn

Management consultant, blog writer, dreamer

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