If you are itching to try out your entrepreneurial skills, you are not alone. In 2020, small business startups were a top trend, with a drastic increase due to COVID-19 job losses. Nonetheless, starting a business is no small endeavor. Sometimes, entrepreneurs jump into their startup plans underprepared in research and understanding of Business 101.
To prevent some common causes of business failures, it can pay to think about how you want to approach your new venture. One of the best ways to do this is by reflecting on all of the Whos, Whats, Whens, Wheres, Whys, and Hows of your vision. Before building a website or setting up a business phone number, ask yourself these nine questions.
- Why Do I Want To Start a Business?
Undoubtedly, one of the most important questions that you ask yourself from the very beginning of your entrepreneurial journey is why you want to embark on it. A company without a purpose will struggle to grow and survive over time.
- Who Is My Target Audience?
Another question to ask before you really get things rolling is who you plan to provide products or services to. That is, who is your target audience? Identifying who this is will not only help you reach the right people, but it will also help you make a profit.
- Am I Meeting a Need?
When trying to determine your company’s purpose, it can be helpful to think about the types of needs that you are meeting. Do you offer something that no one else does, or is your product or service better for a meaningful reason? What need are you meeting and how?
- Does Running a Business Fit Into My Lifestyle?
Something else to think about is how a business does or does not fit into your current lifestyle. Consider, for example, what will you have to give up in order to make this entrepreneurial dream a reality? That is not to say it will not be worth making time for, but it is important to reflect on.
- Can I Realistically Make Money From This?
Money is not everything, of course, but having the ability to pay rent is a big deal. As such, you should never take on a business idea lightly. Think about ways that you can realistically make money from. Remember, unusual does not mean impossible. Google other entrepreneurs for inspiration.
- Does My Spouse or Life Partner Support My Idea?
Being married or in a life-long partnership does not mean you cannot run a business or be your own person, but it does mean that your life and your finances include another person. With this in mind, including your life partner in your plans can help you maintain a healthy relationship.
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- How Familiar Am I With My Competition?
Another key business consideration is your competition. How familiar are you with it? Have you looked at competitors’ websites and visited their stores? Have you ever bought one of their products or looked through one of their catalogs? Research is essential.
- How Will I Handle Marketing Needs?
Speaking of research, another thing you need to spend some time researching is marketing. How, for example, do you plan on approaching this area of your business? Because skilled marketing can mean the difference between success and failure for a startup, you should contact a professional or get learning now!
- What Legalities Do I Need To Consider?
Additionally, you need to think about all of the legalities that business ownership entails. From tax IDs to licenses, permits and everything in between, you will need to work with government agencies and complete legal documentation. Seeking out professional legal support can be helpful.
At the end of the day, starting a business is one of the most rewarding things a person can do, but it is important to think things through carefully.