Today again, as I usually do it here and on other platforms, I want to draw your attention about a subject with the purpose to keep you informed. The idea is to help you to make better decisions in your everyday activities within a specific field.
This time, it’s about “7 questions to ask before starting a business“, written by Jon Grall. You will find more information about the author at the end of the text.
Starting a business is one of the most satisfying things you can do. But it carries a risk. Although some people get lucky despite little forethought, blind optimism is not a sensible strategy. The following questions will force you to think through some common issues and can help reduce your risk.
Am I prepared to start a business?
Starting a business is emotionally and physically draining. You will work harder and, at first, make less money than ever before. Many things can and will go wrong. If you begin tired, frustrated or burnt out, you won’t get far.
Am I passionate about this idea, and will I still be in five years?
Lasting businesses are created when people are passionate about something. If you’re not passionate, you won’t be able to persuade others to join you, invest in you or pay you. Passion will also help see you through the tough times.
Am I the right person to do this business?
You may have a great idea, but aren’t the right person to act on it. It’s important to know yourself, your strengths, and let someone in a better position executes an idea that requires skills or knowledge you don’t have.
What problem am I solving?
Solving a problem is at the core of how your business will create value. If your business doesn’t solve a real problem, it has no reason to exist.
What is the market opportunity?
Understating the market opportunity is essential for turning your idea into a successful business. Many cool ideas will only appeal to a tiny number of hard-to-reach customers.
Is there a clear business model?
If you can’t explain your business model to the man on the street, it’s probably too complicated to work, and without a business model you won’t be able to stay in business.
Can I bootstrap or raise enough funds to reach profitability?
Some ideas require a ton of capital and are out of reach for first-time entrepreneurs who don’t have a proven track record. Make sure the necessary funding is within reach.
Jon Grall is a software engineer and serial entrepreneur with expertise in consumer Web and mobile technologies. He founded SimplyListed and Little Details.
This article was published in Entrepreneur, The Next Generation.
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