Questions You Should Ask Before Starting a Business

 

By Michelle Loredo

Are you looking into opening a business and not sure what to ask? There are a few questions you should ask yourself before starting a business. It includes asking how to start, financing, tax laws, and much more. 

If you are wondering how to start, we have put together a list of questions you should ask yourself before starting. 

Why Do You Want to Start Your Own Business? 

What is your driving motivation for starting your own business? Your reasons can include what made you decide to start a business and your different motivations to help you build your project.

When you are creating your business, decide where you want to fit in the marketplace. Where can you help bridge a gap in the needs and wants of potential customers? For example, you can fill gaps in the medical field or provide hospitality services.

Who Is My Target Audience? 

Once you have decided where to place yourself in the marketplace, find your target audience. See what people are looking for in your area and what competitors are doing to close the gaps. 

Identifying your business target audience will help find niche markets, what social media platforms to use, advertisements, and how to frame your communication to future customers.

Who are My Competitors? (Direct, Indirect and Tertiary)

Your competition is one of your best pointers to see how the market works, how you can improve your business tactics, and what to avoid. 

Create a competitive analysis to evaluate your business's strengths and weaknesses versus competition. It includes: 

• Identifying Competitors

• Organizing Information

• Defining Leaders

• Competitive Advantage

• Competitors Marketing Strategies

• Create A Strength, Weakness, Opportunity, and Threat (SWOT) Analysis

Where Does My Future Business Land in the Tax Code? 

Depending on the type of business structure you choose, there are different guidelines you will have to follow. There are legal requirements by governmental institutions. It is recommended to work with accountants and other professionals. 

How Will I Gain Profit and Meet the Bottom line?

A big question you should ask yourself is how if you are going to gain profits and mee your bottom line. You will have to meet investor's deadlines, and in-house bills so, you will have to create different incentives for people to shop from you. 

How to Track Benchmarks and Success? 

Create benchmark goals at the beginning of the journey so you can track your business progress. You can review your progress as you see fit, for example, halfway through the year or yearly.

Are you Looking into Starting Your Business? 

If you are you looking into starting a business; the SBDC Network is here to help! We can help with start-up business advising, webinars, in-person events, and advising services.  

Here are a few webinars that will help start your business: 

• Business Plan Basics 

• Small Business Marketing

• Understanding Your Financial Statements