Starting a business - 8 questions to ask yourself

Starting a new business is like embarking on a new and exciting adventure. It is fraught with excitement, with a little danger, and lots of obstacles. But unlike a proper adventure, starting a business is not like blindly running into trouble without an inkling of what the future will bring. The wise would-be businessman or entrepreneur can arm himself with information that can increase his chances for success and be prepared for any obstacles that he will face.

But the first hurdle of business is the plunge itself. Are you well prepared to open a business? Are you armed with the right information, the ample knowledge and a clear vision for what you want for your business?

Before embarking on a commitment to do business, do yourself a favor and ask yourself the following questions:

1.Why do you want to start a business?

Dedication and focus is very important in forming and running a business. It is a time consuming task and the prospective entrepreneur must have the drive to see his business through to the next level. Altough running a business brings tremendous rewards, you’ll have to think carefully if you have the right “mind space” for business.

2.What kind of company structure is best for my business?

Would you like to open a sole proprietorship where you own the company yourself but you also assume all the risks on your own? Do you want a limited company or a partnership? What are the obligations and responsibilities for each choice? You must assess what kind of business you want to set up and this is the first of many choices you will make.

3.What are my skills and weaknesses?

The conscientious businessman knows his strengths and his weaknesses. Ask yourself what your strengths/weaknesses are and list them down. Ask friends for their honest opinion. By knowing your attributes you can then hire people who are strong in areas that you are weak in or can compliment your skills.

4.What do I do with funding?

The best ideas in the world do not guarantee overnight success. That is why you have to be prudent when it comes to funding estimates and using your resources. Ask yourself how you will support your business, aside from saving enough money, are you going to take out a loan from either the bank or from friends? These are business decisions you will have to make.

5.Who will I compete with?

Starting a business is like preparing to go to war. Your objective is to win over your competitors in the eyes of your target market so you will capture their pockets. Do a thorough research on your competitors, identify their weaknesses and ensure that your product or service exploit these opportunities as a way of presenting yourself as a better choice. Never be complacent when it comes to competition.

6.Is there a market for the product or service I am offering?

Try to determine if there really is a demand for what you are going to sell. There’s no use in starting a business if there’s really no demand.

7.Do I have a business plan?

A lot of budding entrepreneurs underestimate the power of an effective business plan in starting a small business. A business plan gives structure to the random thoughts and ideas you have about starting your business. By writing a business plan you not only bring order to your vision, it can actually help your ideas evolve further. A business plan is also important when seeking funding or new business partners.

8.Where can I seek professional advice?

It is an important step in starting a business to consult with a trusted adviser. Try to identify a person you can ask advice about the business you want to start. You can also hire a professional to fulfill this function if you are so inclined