You must really be commended for taking the initiative to start a small business, and you must also be praised for desiring to become a successful entrepreneur. But you stand a great chance of failing in your proposed business unless you answer some business questions correctly.
In fact, you are sure to fail in that business unless you answer these questions correctly and honestly too:
1. Why should I go into business? Business is not for everybody and you must be aware of this before venturing out into personal businesses. So be sincere and ask yourself: why should I go into personal business?
2. Why do I desire this particular business? Having justified why you could go into a business, ask yourself why you must choose this particular business above others. What makes this particular business suitable and attractive to you above others?
3. What should be my products and services, and what particular problems does this product solve? You must know what your products are and why you must produce this particular product. Chief among your reasons is that it solves a particular consumer need; it is a solution to a particular consumer problem.
4. Who are my ideal customers? You must identify who your customers are, and make them aware of the fact that the solutions to their problems lie in your hands. You must know if your customers are women, children, illiterates, workers, age 30+ years, age 45+ years, living in urban cities or villages, or any other demographics that’d make you target them better.
5. Are people willing and eager to pay for this product or service? You must be double sure that your target customers are willing and eager to pay for your product or service. Be sure they are willing, capable, and ready to beg you with money in their hands for your products before you go ahead into a small business.
6. What sacrifice am I willing to make for this business to succeed? Be certain you have the needed funds and time to commit to your business before starting out and be sure you are obliged to make any other needed sacrifice to make your business succeed.
7. Is this product or service scalable? Can it be modified to suit individual needs? Can it be improved to meet future challenges? You must be ready to address these issues before starting out in your business.
8. Are my products and services unique and impossible to duplicate? You must ensure that your product is the only one of its kind and that it is the only solution to given problems. However, it must be nearly impossible to duplicate by competitors.
9. Will vendors be eager to distribute your products for you? Your product might not be worth it after all if other marketers and vendors are not willing to market or distribute it on your behalf. The willingness of other marketers to market it for you underlies its recognized usefulness at meeting consumer needs.
10. Where am I locating or situating my business? Be sure to site or locate your business where it will prove most accessible to your given customers.
11. Would I need employees, and how many would I need? At the point of starting out on your business, you must know if you’d do it alone or need more workers after some stages in your business.
12. Would I depend on others to supply me materials? Be certain to determine the sources of your raw materials and how well you can depend on particular suppliers to help.
13. What is my initial capital outlay, and would I require loans later? Capital determines how far you go in the initial journey, and you must know before starting out if you’d also be requiring some business loans along the journey.
14. When will my products be available to customers from start-off? You must be able to know if your products will be available to your customers for purchase within one, three, or six months of taking off in your small business.
15. How soon will I start to make profits? You should also be able to determine if you could start making sustained profits within a month or two of launching out.
16. Who are my competitors and how should I deal with them? Your ability to identify your major competitors and work out how to beat them at the game will go a long way in ensuring your success.
17. Does my business require legal documentation or a legal structure? There are one-man businesses that require legal documentation and there are those that do not, but it is best to legally register your business and work out a legal structure along with necessary documentation to give your business a sense of perpetual concern.
18. What taxes am I required to pay for my business? Consult with business experts and consultants to know what taxes would be required of your business so that you don’t run afoul of the law.
19. Would I need any kinds of insurance cover? Be sure to also consult with licensed consultants to know if you’d be needing insurance and how to go about it.
20. Will there be the need to always advertise my business? You should be able to determine if advertising would be invaluable to the success of your business, and how to plan a media ad campaign that would be of optimal benefits to your business.