Starting a Business? You Need to Answer These Questions First

When starting a business or re-inventing an ongoing entity, there are a few relevant questions one needs to ask and that need answering in a very honest way. If you come up with a lot of negatives you need to reassess.

My Product/Service Is:

• An idea I’ve been toying with for some time
• Currently under development
• A working prototype being beta tested
• Generating a small amount of revenue

My Industry is:

• Selling to an end user B2C or B2B
• Not yet a sector in the industry, too cutting edge
• One that is mature
• One that is new and currently in fashion with investors

My Product/Service Will:

• Not have high volume but high margin
• Make life easier for consumers and have good margins
• Help consumers do what they do only better and more efficient
• Save time/money and have huge demand

The Market I Am Entering Is:

• Flat with no growth
• Growing by under 10% per year
• Growing by 10-30% per year
• Growing by more than 30% per year

My Primary Competitors are:

• Nonexistent – we are developing a new market
• Large companies with existing distribution channels
• Start-ups I may or may not know
• Substitutes for what I am offering

My Customers Have:

• Not been identified
• Have been identified on social media platforms
• Expressed interest in what I am proposing
• Have placed preorders

My Marketing Plan Is:

• Build it and they will come
• Build a website, use SEO and they will come
• Hire commission-based sales staff to sell product
• A comprehensive and well-researched plan

My Revenues In The First Year Are Planned To Be:

• $0 – $250,00
• $250,000 – 500,000
• $500,0000 – 750,000
• Over $750,000

My Revenues In 5 Years Will Be:

• What ?

Do You Have Any Partners?

• Individuals?
• Other Businesses?
• What is the relationship legally?
• What is the legal structure?

What Is The Entrepreneurial Experience I And My Team Have:

• Managed successful businesses in the past
• Have no experience
• Minor experience
• Limited experience in this industry

My Business Plan:

• Don’t have an overall Plan
• Looks OK to me
• Has been reviewed by other professionals
• Is in constant revision

I Have Invested ____________ man-hours into this venture

I Have Invested ____________ of my own money into this venture

Others Have Invested Money & Time

• Who?
• What is relationship?
• What are conditions of payback?

If Large Competitor Decided To Target My Start-up

• Very bad for our survival
• Glad to hear the market is being validated
• Able to compete based upon innovation, speed, agility
• Would move to form partnership of license technology

Are There Other Startups In The Industry Raising Capital and Growing?

• No others in industry
• Yes, and they have a head-start on me
• No start-ups but other established businesses
• Many other businesses in industry, large and small