Editor’s note: This article was first published in September 2015, and its opening refers to the lack of jobs and high unemployment pushing people into self-employment in Spain in 2015.
Because of the lack of jobs and high unemployment, many people are starting businesses to create their own jobs. For a business to succeed, you need to ask yourself some basic questions before setting it up, in addition to the usual ones about whether the business is viable.
Every good business owner asks a lot of questions before starting a business, and keeps asking questions throughout their business career. Asking questions is the sign of a curious mind. And only by asking the right questions do we get the right answers.
Almost anyone can start a successful business. But it takes common sense, and there are no shortcuts for that. And there will be tough days along the way.
All entrepreneurs should ask themselves the same questions before starting a business. Asking them is necessary to understand your own motivations and commitments, because time that passes never comes back. Your answers will help you define what you want and shape your plans.
1. Why do I want to start a business?
Examine your reasons carefully. Maybe you can’t stand the idea of working for someone else all your life, or you are attracted by the entrepreneurial lifestyle. Do you think it’s the road to wealth? Or do you have a special need to help others?
Be honest with yourself. Your reasons need to be compelling enough to hold up when business gets tough, because an entrepreneur’s life sometimes hides some very “dark” paths. That’s why not everyone is cut out to be a business owner. And it isn’t a matter of ability, but of not being able to control one’s emotions at the hardest moments.
See also: The secret price of starting your own business
2. What are my strengths?
Identifying your strengths will point you towards the kind of business you should start. Work towards your strengths and preferences, and avoid what is obviously not a good fit for you.
Many people start a company solely to make money, and in the end they discover they don’t love what they are doing. Success has many faces, and generating material wealth is just one of them.
See also: 15 questions to evaluate your business idea
3. What do I need to know to succeed?
You need to research what the business will mean in terms of effort. What kind of background and education do owners of similar businesses have? Talk to them and learn how they got there.
How much money does it take to get it off the ground, and what licenses and certificates do you need? Knowing these practical details will help you grasp the scale of the challenge the business involves before you launch it.
4. Why would people buy my product or service?
You should be able to explain it without rambling, without jargon or complicated phrases, and ideally in under 60 seconds. If you can’t convince one of those people you call “ignorant” for not understanding your product, you probably don’t have a business, or you may have aimed it at too exclusive an audience. Put yourself in a future customer’s shoes and ask yourself: “Why do I need this product? Why this one and not another?”
5. Can you aim your product at a viable market?
As we explained in our article “The 3 keys to business success“, we need something as basic as a product, a market and the ability to get the product into the market. Our product can be aimed at different markets. What you need to ask yourself is what your target market is. Imagine you open a bakery across the street from a big grocery store. You probably couldn’t beat them on price, and you would also be at the disadvantage that whoever goes to the “big store” wants to leave with the bread, the fruit, the toothpaste…
Differentiating yourself is another matter. If your bread is homemade (better quality), you might not even need to compete on price, because the quality is different and customers would make the effort to skip those “chewy” baguettes at the big store and buy from your shop instead. You should do market research so you don’t make the mistake of selling bikinis in the mountains or coats on the coast (it may seem like an extreme example, but similar things have been seen).
6. What sets my product apart from the competition?
This point is not one of the most important. Although we often talk about innovation and originality, the truth is that sometimes, by selling the same thing as someone else but in a better location or with better advertising, we end up “landing” a slice of the pie and even beating our competitors. Of course, if you manage to stand out in quality, price or service, you will always have it easier. And if you can bring all three together, success would be practically guaranteed.
7. What is my plan going to be?
Your next task will be to create a business plan that sets out where you want to go and what steps you need to take to get there. If your vision is to own a restaurant, find a top restaurant and learn alongside a chef you admire.
If owning a restaurant is your dream, visit a restaurant you admire and learn about building customer loyalty and the economics of a food business. The more you immerse yourself in a similar kind of organization, the more confident you will be once you strike out on your own.
After you start your business, new questions will come up all the time. But the most important questions to keep asking yourself are these: Does this still make me happy? Would I be happier doing something else?
You will have good days and bad days. Asking yourself those fundamental questions and being honest with yourself will keep you heading in the right direction. Starting your own business can lead you to happiness. And that is a goal we should all pursue and one worth striving for.
Further reading
Featured image: Jungle Jim's International Market from FAIRFIELD, USA, CC BY 2.0, via Wikimedia Commons.
