Frequently Asked Questions To Ask When Starting a New Business
When an entrepreneur wants to start a small business, he must first decide on what he wants to do and how. An entrepreneur first scan available options and then selects the type of business, given his major considerations.
I know when it comes to starting a business, many questions comes to mind. It happened to me when I started my first business and when I helped others with assistance, and I do get similar questions from them too.
I personally went and research on frequently asked questions on starting a business, I personally interviewed many successful entrepreneurs to find out the questions that they do get from aspiring entrepreneurs and their best answers.
I have 5 major questions that are the most frequently asked questions by aspiring entrepreneurs and I will help by giving possible answers given by successful entrepreneurs who has been in business for decades now.
STARTUP QUESTIONS TO ANSWER WHEN STARTING A BUSINESS
1. What Kind of Business Should I Start?
This is one common question that aspiring entrepreneurs do ask especially when they don’t know anything about starting a business.
The best can only be answered by you and only you. Think of a business that you can start using your own talent to generate money.
Picking a business that you are familiar with is the best choice of business for you. Don’t make the mistake of meeting a business consultant to tell you the kind of business you should start.
You are the entrepreneur who will operate and manage the business not the consultant. Start a business that you are passionate about, have some experience and which do not involve huge amount of money to start.
2. How Much Cash do I Need to Start?
The amount of money needed to launch a business is determined by the kind of business that you’re venturing into.
The first thing you need to do is by drawing up your business plan so everything will be clean to you. Armed with this information, you can then be able to analyze what it will cost you to start your business.
According to business expert, if you are starting a business, you should have a capital that can cover the business operation for up to at least 6 months if the business really requires location, office space, electricity etc. and mostly when it will be your only source of income.
3. Where Can I Source for Fund if I Can’t Raise it?
There are many places and ways you can source for fund if your capital won’t be able to launch the business.
You can go to the bank for loan, ask from friends and family, use a credit card, attract angel investor, register at crowdsourcing sites like www.kickstarter.com so that you can get help etc.
These option listed above are all trusted and it works very well for aspiring entrepreneurs. Another way of getting funds is through partnership. If you know of any business person you can share your business idea and vision with that has the money and will be willing to fund your small business, you can sign up a partnership deal with the person and launch your business.
After the business has grown to the stage where you now have enough money and you don’t want any partnership again, you pay the partner off and take charge of your business.
To this I will say yes and no. don’t get it twisted, let me explain.
Yes in the sense that if your business to be launch is a complex one, you may need a business plan. It will help you gain better understanding of what you are venturing into because as you start writing, new ideas start dropping into your head.
No on the other hand that sometimes having a business plan is useless. What if after drawing a business plan and tomorrow you wake up and a new government that knew not Joseph comes into power and change the economy?
If you know you want to write a business plan, my candid advice for you is first, let it be flexible and don’t kill yourself preparing a 52 pages business plans. A well-detailed business plan outline just 2 to 3 pages is okay. Secondly, do not follow it too much because market changes.
In reality, many startups deviate from their business plan. The ball is in your court!
5. What If I Fail?
What if you fail? You come let me give you a dirty slap for failing (just kidding but don’t bring your face).
To be frank with you, the earlier you fail the better for you. When you fail, it shows that you were not doing something right. Learn from the story of the old man that invented the fluorescent bulb.
Do you know what business men do when they fail? They go back to their drawing board. According to statistics, 98% of startup businesses are expected to fail within their first five years.
Some even fail after the first 5 years. The reasons for your business failure serve as a learning tool.
In conclusion, do not see failure as a stop, see it as a pause and reevaluate the business then push further.