Starting a new business is a serious undertaking. It’s filled with risk and uncertainty. No one can offer you a magic formula for success. I’m certainly not about to try.
What I can offer are some carefully crafted questions to help you evaluate whether starting your own business is the right decision for you. I hope you’ll spend some time really wrestling with these questions. They won’t be easy…but running a business won’t be either. Take the time now to understand what you want, what you offer, what skills you need to build, and what you’re willing to risk.
Goals & Expectations
- Why do you want to start a small business?
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What does success look like?
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What does success at the end of year 1 look like?
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What would you do if money was not an issue?
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What will you be missing out on if you start this business?
Interests & Expertise
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What are your strengths?
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What are you known as an expert in
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What would someone pay you to do for them? Or what would someone buy from you?
Work Habits
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How many hours/week do you want to work?
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What are your competing obligations?
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Do you prefer to work on a set schedule or be flexible about when you work?
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Are you more motivated or passionate about this project?
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Do your decisions normally result in a positive outcome?
Demand
- Who wants what you’re selling?
- How many potential customers are out there?
- Where do your potential customers live? And shop?
- How often does the typical customer make a purchase?
- Is your product/service more of a neccesity or a luxury?
People & Partners
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Do you want to have a business partner?
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Do you want to have employees?
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Do you have relationships with other business owners who can be referral sources?
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How comfortable are you making decisions?
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Are you comfortable being the front-person for your business?
Exit Strategy
- What is your exit strategy?
- How do you know your business is not successful?
- Will your company have assets you can sell? Or will it close if you stop running it?
- How do you know the right time to sell?
- What will you do after selling/closing your business?
Money
- How much of your own money can you invest?
- How much debt are you willing to take on
- What is your tolerance for risk?
- How much money do you want to make each year?
- How long can you wait to turn a profit?
Weaknesses & Gaps
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What are your weaknesses?
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What skills do you need to develop before starting a new business?
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What work habits have gotten you into trouble in the past?
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Are you comfortable being responsible for things you have never done before? What is your tolerance for learning new things?
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How skilled are you at the following…Sales? Marketing? Accounting? HR? Inventory Management? Supply Chain Management?Â
Competitors
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Who are you competitors?
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What are their strengths? And weaknesses?
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Why would someone buy from you instead of your competitors?
Alternatives
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If you didn’t start a business, where would you work?
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Can you start a business while working someplace else (full- or part-time)?
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Can you start small and grow over time?
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Have you considered franchise opportunities?
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Have you considered buying an established business?
Differentiators
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What problems do you solve for potential customers?
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What do you do differently than other businesses already in the market?
This list certainly is not exhaustive. But if you’re going to get started, you have to start someplace. As my friend, Kay Jones at Moxie Professional Devleopment says, “Get In The Arena.” You can’t win, if you don’t play the game.Â
Need support as you launch a business?
- Check out how we can help with your website, social media, email marketing, and content.
- Join us in The Small Business Collaborative and get the support and advice you need to build and grow your new business.
