10 Questions You Must Not Go Into Business Without Answering

Nowadays, almost everyone is getting into one form of business or the other. Even those who are having a formal job are seeing the importance of going into some form of business, as they consider how crucial it is to secure some additional source of income. No doubt that, one way of making a lot of money and living comfortably is by getting into the business world.
 
But mind you, not everyone is making it in business. For every three successful businesses today, there may be about seven others that have failed woefully. For most cases, the problem is with the start up. Many people go into business excitedly without asking the necessary questions that will clarify what they have in mind and ensure their preparedness for it. So they fail woefully.
 

The following are 10 important questions everyone who wants to start up a business needs to answer before starting up. This is just to ensure that you have a clearer picture of what you want to go in for so that you can make a sound and well-informed decision. They are:
 

1.    Is The Entrepreneurial Life For Me?

Some people are wired in a way that by merely looking at them, you can tell that they are cut out for business. They have the tendencies of entrepreneurs. Hardly can they be tied down to one thing. All that they think, read, talk, dream, and do is about business. 

They love selling and buying; they enjoy coming up with new ideas, they love discovering new products; they are never afraid to take risks; they are hardly stressed out by work; they are always doing their own thing; they are fascinated by market changes and so on. Such persons will make great entrepreneurs.
 
So: Ask yourself, “Am I the Entrepreneurial type?” 
  
Non-the-less, it is possible to succeed in business even if you are not the entrepreneurial type. You could employ people to do it for you, but you must start the business by conceiving the idea. See my post titled “How To Know If You Can Make A Successful Entrepreneur” , for more.

 2.    What Is My Business Idea?

Once you are sure that the business life is for you, the next thing to clarify is the business idea. The business idea is simply what you have in mind to do. For most businesses that will succeed, the business idea needs to address a clear need in the market. If your business idea is just a copy of another person’s, it is not lucrative enough.
 
So: Get straight what you want to do, be very clear about it and be able to speak passionately about it. If you are not passionate about your idea, it may not be good enough. Don’t end at having the idea in mind. Write it down. In writing it down, many things get clearer.
 

3.    Who Will I Be Targeting?

Every business has a target population. You need to be clear about the target population of your business. You could be targeting students, classic ladies, traders, travelers, car owners, bankers, children, families of a particular neighborhood, and so on. Your target population will direct you on where to locate your business and how to operate it. The size of your target population will also help to give you an idea of what you will make out of the business.
 
So: Have a clear target population in mind as you conceive your business idea.
 

 4. What Products (Goods/Services) Will I Be Bringing To The Market?

Every business is about a product. The product can be goods or services or both. While thinking of your business idea, you must have thought of your product, no doubt. However, you need to go deeper into all the different things you will be bringing into the market. This is one area where you will be testing your creativity since for you to excel you need to be very innovative/creative. 

Some people think they will do exploits in a particular type of business, until when they sit down to think deeply about what they want to offer and they find out that they are empty. I have had this experience and maybe you too.
 
So: Sit down and list all the different products you want to offer, whether in the beginning or in the long run. Ask yourself: What is new about what I want to offer?
 

5.    How Much Will I Expect For My Products?

This question and the next that concern the price for your products are interconnected. It is good to settle in your mind, the minimum you will expect people to pay for your goods and/or services. Your decision will be influenced by what other people who are into that same kind of business or something similar, pay. So this will cause you to do some research on the price. 

In setting a price, don’t be too ambitious to set an unrealistic high amount. For the most part, for a start, you will need to set a price slightly lower than what others doing the same business are charging. With time, as you gain grounds in the market, your price could be increasing.
 
So: Take out time to find out what other persons offering what you intend to offer, are charging for their products. Are you ok with it?
 

6.    Will People Be Willing To Pay Such An Amount?

If you have decided on how much you will be charging for your products, you need to be very clear on what people will think about your prices. You may carry out a Willingness-To-Pay Survey or just sample some of the users of your intended product and find out what they think about the current prices. Their thoughts on the current prices will give you an idea on how they will react to your own price.
 
So: Find out what people will be willing to pay for your product and from there, determine a price. Your price may be higher than what is in the market, if you are sure to bring in something of a far higher quality than what is already in the market.
 

7.    Who Will Be My Competitors?

Every business will have competitors. Never think that you are the only one thinking about something. Even if you are the only one, eventually when you start, many others will see it and hop in. You need to find out who your most likely competitors will be.
 
Your competitors are those offering the same thing, a similar thing or an alternative thing. Put your radar on the market and see who and who falls under as a potential competitor. Go ahead to map out strategies on how to compete better, with them. Remember that because you will be coming in new, you will need to put in double efforts in all aspects so as to get to a level where you can compete well with your competitors.
 
So: Make a list of your competitors and plan on how to compete with them by finding out their strengths and weaknesses. 

Read my post titled "How To Face Competition In any Business", for more.

8.    What And What Will I Need To Start Up?

To start up any business, you need resources. You need money, men, materials, machines, space, information, strategy, and so on. You need to carefully and deeply consider the business you want to do and determine how much you need at least for a start, who you need to start up with (business partners, employees), what machines, tools, apparels, you need, what amount of space you need, what information you need, what strategies you need, etc.

So: Sit down and make a cost estimate of all that you need for a start. Don’t wait to have all you want before you begin. Try to see how you can do without some things that are not too necessary while you hope to get them later.

For more, read my posts titled: "The Pros and Cons of Business Partnerships", "Six Questions To Ask Before Going For A Business Partnership" and "How To Build A Winning Business Team".
 
 

9.    When And Where Do I Start?

You must not sit and hope to start up some day. Set aside a time you desire to start. It will cause you to go to work and do all you can to meet up with the time you have set. Even if you eventually don’t meet up, you will not miss it very much. Never plan to get into business and not set a time for it.
 
Also, think of the place that will be suitable for the business. This has to do with the geographical location and the business premises. You need a place that will give you the greatest access to the people you are targeting. Even if you cannot have the best place in the beginning, get a place that is close to the ideal while working towards getting a dream place for the business.
 
So: Be sure that you have a set time when you want to start your business and go ahead to look for a suitable place for it.
 

10.    When Do I Imagine To Start Making Profit?

A good number of people get into business dreaming of making so much money too soon. This can happen for a few cases but it is hardly the usual thing. Before starting a business, try to project when you think your business can start paying off. In trying to do so, think of how long your business products may take to get noticed in the market, how long it may take to penetrate the minds of the people in your target population, how long it may take to beat competition and win the market, and so on.
 
So: After having an estimate of how long it could take for you to begin enjoying the cash, you can have realistic expectations and decide if it is still worth doing or hanging up.
 

After asking all the above questions and having clear answers, I can guarantee that you will be on the right path to make a good decision to start up or not. At least you will know how to go about things and what to expect.
 
Don’t start up that business without giving serious thoughts to the above questions. You will be saving yourself time and money if you take the pains to answer them.
 
I hope you have gained much from these words of business advice. Make your comments below.
 

by Kadzem Claude

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