What are the most important questions an Entrepreneur needs to ask when starting a ((Small) Business or Company?
- crowd rank
Do I know how I will make money, and what actions I need to take to make it happen?
Think of this as creating a timeline of everything you need to do in order to sell your product or service at a price which is greater than the cost to you; this means the cost of buying or creating the product and/or the cost of giving the service.
Do I know how to read an Income Statement and Balance Sheet?
Even if a small business operator has someone else do the bookkeeping and/or accounting, it is crucial to know which reports you need and how to read them. And then learn what the appropriate action to take is based on what you learn.
Do I have a living business plan that I can refer to for regular reviews?
A living business plan is a bare-bones business plan that includes goals and measurement to stay focused and active. Living means your plan can be flexible to accommodate any changing needs.
Is there a market/demand for my product/service?
Am I solving a problem/pain? Will customers pay me for my product/service at a price I can afford to sell my product/service? Will the demand for my product continue, is the demand likely to grow?
Have I created my operating budget?
If I don't know what "operating' my new business is going to cost, I will have no idea how long the money put aside to get started will last, until I am able to make a profit?
Am I creating a new market, taking advantage of an existing one or just adding to the noise?
New markets can be created for products & services, however it is far easier for a new business to take advantage of an existing market where there already is a need and where you are solving a known problem or pain. If you have not focused on one or the other you may just end up treading water as a business owner, or adding to the noise.
How do I find my Customers?
First you need to define your customer? Once you have a good idea of who,what and why they are, you can begin the methodical search as to where they might and do hang out. Are they on any of the social networks; Twitter Facebook, Google + or other local social? Do you need to join more conventional groups like Rotary?
What is my personal reason for this small business?
What is my personal reason for starting this business? Is it an effort to escape from 9-5 employment & a domineering boss? OR am I passionate about the business I am starting and understand it will most often be more time consuming and difficult than being a mere employee.