The playing field is level for anyone who wants to pick up a bat. If you’ve been on the fence about your own startup idea, keep reading. We’ve listed the top questions you need to ask yourself before stepping onto the field.
1. Is my business unique?
This is where the research starts. Having an idea is the first step. Find out what other companies have done with this or a similar idea and what angle they chose. Similar businesses pose a threat, but only if you have yet to figure out how to set yourself apart from the crowd. Leverage your idea with research on current startups, and then brainstorm with your business partner, other entrepreneurs and even family and friends to bounce ideas. Sometimes the people farthest from the business are the best to approach. They don’t have a financial or emotional stakeholder in the company and can be objective and honest with you.
2. Who is my support system?
An entrepreneur’s life can be stressful. It’s a lot of long hours by yourself, pushing harder to build the business the way you want it. You have a lot of skin in the game, but you have to remember you’re not in this alone. Even if you don’t have a business partner, rely on the emotional support of friends, family and other entrepreneurs. Consider joining a networking group like Entrepreneurs’ Organization to find other people who are going through similar struggles. A lot of times you can save yourself unnecessary time and effort by talking with someone who has learned business lessons the hard way.
3. What is my ultimate goal?
You might have business goals—earn X amount of dollars, expand to X number of cities, develop 5 new products—but why are you starting your business in the first place? Is it for personal freedom? Financial freedom? More time to spend with family and friends? More time to travel? By identifying both your personal and professional goals, you’re positioning yourself to be happy in both arenas and preventing potential burnout.
In the end, if you don’t run your business, your business will run your life. You have to decide what’s important to you and keep that front and center as you embark on this adventure.
4. Am I Willing to Make Sacrifices?
Starting a business means putting it ahead of many other things in life. Beyond the extensive planning and preparation, it requires personal time and sacrifice from you. While your business is young and growing, you’ll have to say no to fun trips with friends, relaxing weekends and “time off.” Most of the time a business doesn’t turn a substantial profit for the first five years. In that time, your personal finances will be affected as you might have to supplement the hills and valleys of starting a new business.
5. Do I have a solid financial plan?
This might sound basic, but many new companies fail in the first few years by underestimating the cost of marketing strategies, inventory, production, payroll and overhead costs. Things happen, plans and people fall through. You have to account for a margin of error when preparing your financial plan. Enlist the help of an experienced entrepreneur or financial advisor to test your plan for holes and long-term stability.
