Ten Questions to Ask Yourself Before Starting a Business

Many people turn to business in order to realize their dreams.  However, it is not as easy as it sounds.  Most entrepreneurs who start a business without proper research are bound to fail.  According to the U.S. Bureau of Labor Statistics, more than 20% of small businesses fail within their first year.  Therefore, before starting a business, you must ask yourself these ten essential questions. 

What is Your Reason Behind Starting a Business?  

The first and most important question that you need to ask yourself is why are you starting the business?  Are you passionate about your business idea?  Or are you pursuing it because someone else has done it successfully?  Or is it simply because you are bored of your nine to five job and are looking for a change?  You must ask yourself these questions, and then when you are clear about the answer, can you think about starting a business.  You must have a clear and long-term vision regarding your business apart from having enough knowledge and a deep passion. 

Who are My Competitors?  

It is more than likely that your business idea already has an established market somewhere, and you have many potential competitors even before starting.  Therefore, what you need is a complete analysis of your business plan.  You must perform competitive research on all those who are running successful businesses.  This will give you considerable insight into the products they are offering, their pricing, marketing strategies, and their drawbacks.  Additionally, you will get to understand the market in a better way.  Studying your competitors can also provide you with some serious inspiration that can go a long way in improving your overall business model. 

How to Fund My Business?  

The most important factor in any business is money.  Hence, if you are looking to start your own business, you must look for ways to finance your needs.  Right from registering your business to paying your employees' salaries to advertise and promote, you will need funds for several purposes.  There are many methods of raising funds.  You can either self-fund your business or obtain loans and get some from investors involved.                                                                                                                              

Who are My Target Consumers?     

To set up your business model, you must have specific insights regarding your target consumers.  Knowing your customers would help you design your advertising and marketing strategy.  Additionally, you will understand your consumers' needs and can improve your products.  For example, Apple primarily targets college students, business executives, and professionals.      

How to Market My Business?  

In order to market your business wisely, you must be creative and innovative with your approach.  People are already aware of what kind of product they will find in your company.  Hence you need to market your business efficiently.  For example, if you are looking to attract younger audiences, you can target social media platforms.  If you do not have funds for advertising, you can focus on SEO and content marketing.  That will not only increase your organic traffic but will also convert potential leads into clients.       

How to Price My Products?   

This is probably one of the most challenging aspects of any business.  You need to keep your product perfect.  Your products cannot be overpriced or underpriced.  If you price your products correctly, it will improve your sales.  On the other hand, if your products are incorrectly priced, it would lead to the failure of your business.  An intelligent method of getting an overview of pricing is to observe your competitors.  You also need to take your costs and profits into account.  A product must be priced in such a manner that it covers your production costs, business costs, and marketing costs while leaving some room for profit.   

Can I Make it on My Own?  

Every entrepreneur faces this question at some point in their career. As an entrepreneur, you have to take on a considerable number of responsibilities if you are going solo.  From building and developing products to managing sales and marketing, a score of responsibilities falls on your shoulders.  What is the USP of My Business?  

You must try to stand out among your competitors, and for that, you need to develop something unique about your company.  It can be anything – a product or a service.  This will eventually develop into your company's USP (Unique Selling Proposition).  Something that will attract new clients and retain the old ones.  In today's competitive market, people are bombarded with choices and are always looking for something different.  If you study your target consumer, you can offer them something that takes care of their needs and makes you stand apart.     

What are the Taxes I Need to Pay?  

You need to have extensive knowledge of taxes to run a business.  You should know about the taxes you need to pay and keep an eye on what the other companies are paying.  Taxes can differ depending on where the company is based or how it is structured.  It is a legal requirement for companies to report what their employees are earning due to taxation purposes.  If you stay updated about all such regulations, it will keep your finances organized and help you run a successful company.     

Am I Ready for the Future?  

Everyone who starts a business is hopeful in his approach and positive in his intentions.  But despite taking all the proper steps, it is difficult to anticipate the future.  Therefore, one must always be prepared.  You must follow the golden rule of not putting all your eggs into one basket when it comes to your finances.  You should also keep aside a substantial part of your income for emergencies.   

These are ten critical questions you must ask yourself if you are looking to start a business.  Most entrepreneurs start with zero experience.  However, if you spend some time pondering upon these questions, you might gain significant insights that will help you run a business with a clear frame of mind.