Business Questions Smart Entrepreneurs Should Answer Is The Subject Of Join Up Dots Podcast
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So Ready To Start Your Own Business?
It’s amazing how many people simply decide to start a business without even a second thought as to the reasons they are doing it.
They dont ask any of the important business questions that can make such a difference to your success.
Its ok, to say you want to be in control of your time and future, but lets be honest at the beginning you will lose all of that bigtime.
You will work longer hours than you have ever done, as your business slowly grows.
You will lose control of your health, finances, friends….its quite a long list to say the least.
So lets put you on a better footing and get you to sit back and really make the right decision as to starting your own business
Lets start with question one.
Why Am I Starting A Business Is THE Business Questions To Ask ?
One of the most important things to understand about your business is why you’re starting it.
Is it because of a personal passion for what you do?
Are you looking to build financial security for yourself or your family?
Do you want to be your own boss and have more control over what goes on with your time and money, rather than someone else’s?
Whatever reason compels you toward entrepreneurship, it should inform all other decisions that follow in the startup process.
If the answer changes over time (and it probably will), then this can also influence which direction your business takes as well.
The best way to determine what motivates us is simply by asking ourselves: “Why am I doing this?”
If we’re honest with ourselves, our true motivations will come into focus—and that’s a good place from which to start building out our businesses!
What Business Problems Do I Want To Solve?
The first question you should ask yourself is, “What problem do I want to solve?”
This might sound like a difficult question to answer, but it can be surprisingly simple.
Think about the problems you’ve experienced first hand and what solutions you’ve found for them.
For example, if you’re having trouble finding a parking spot at the airport when visiting family in another city then there’s a clear problem (and maybe even a solution).
In fact, there are probably many problems that need solving in our lives already—we just don’t realize it yet!
The key here is not to look for something that doesn’t exist yet but rather something that does exist and isn’t being solved quite as well as it could or should be solved.
How Is My Company Going To Make Money While Solving This Problem?
This is the “why” of your company. It defines the problem you’re solving and how it’s going to make money.
If there’s no market for your product or service, then nobody will pay for it—or at least not enough people to sustain your business over time.
If there isn’t a need for what you’re offering, then nobody will use it. (And if they don’t use it, they won’t pay for it.)
This question is also where most entrepreneurs get stuck in the planning stages because they can’t answer this part of the equation with certainty—but that doesn’t mean that they shouldn’t try!
The best way I’ve found to answer this question is by conducting market research (surveys and interviews), observing competitors who are already in the space, and talking with people who might be interested in buying from me once my product or service goes live (like investors).
Who Wants To Buy This Product Or Service?
Who wants to buy this product or service is one of the business questions that will form the basis of your business?
If you’re starting a business, you probably have an idea of what product or service you want to offer.
But before you get too far down the path, it’s important to consider who wants your product or services in the first place.
Why?
Because if no one is interested in buying what you are offering, then there is no point in starting a business at all!
So how do we find out if there are people who have problems that need solving?
This is where market research comes into play.
Market research helps entrepreneurs identify their target audience and determine whether there is enough demand for their idea (or not).
Market research involves analyzing data about customers that are already using similar products or services and then using those findings to direct future marketing efforts toward potential customers who might be interested in their own unique offering.
How Will I Test My Business Idea?
Start small and then build from that point.
You don’t have to spend a ton of cash on this piece of the puzzle for sure, but being thorough and working your way through bigger and bigger groups can reap huge rewards for sure.
- Test your business idea with a small group of people.
- Do they like it? What do they like about it, and what don’t they like? What’s missing?
- Based on their feedback, make any necessary adjustments to your plan or product and try again with another small group—and keep going until you reach the point where you can be sure that these people want your product enough that they would buy it if given the opportunity (and if nothing else, at least tell them how much one month’s worth of their product costs).
Do I Have The Resources I Need To Start This Business?
To answer this question, you need to be clear on what resources you’ll need to get started.
Resources include time, money, support of others around you (emotional and professional), mentorship, community and physical resources like an office or equipment.
You may also need IT support and technology.
You also many not even think about things like drive and ambition that you need to tap into when times get tough…and they will always get tough for sure.
Many people think that starting a business is just a process – which it is to a point and then it becomes a challenge and a puzzle as you build it bigger and bigger.
How Much Should I Charge For My Product?
The only way to figure out how much a product should cost is by looking at the market and seeing what’s similar to yours.
If you’re selling an organic shampoo, compare it with other organic shampoos.
That will tell you if your price is too high or too low.
Once you’ve determined that, there are two ways of pricing:
- Premium Pricing – If people like your product, then they will pay more for it! This can be because of quality or exclusivity. You can charge more because people have heard about you and want to try something new or just because they value your brand name (think Apple).
- For example, my friend sells artisanal moda jewellery at fairs and markets around the world–she charges $50-$100 per necklace depending on materials used in each piece (elderberry wood beads instead of plastic beads). Her customers know that these necklaces aren’t mass-produced by machines in China; instead they are handcrafted one at a time by her with love and care–they’re worth every penny!
How Will I Market My Business And Tell People What It Does?
As you begin to establish your business, here are some of the key areas you should consider:
- Your brand
- Your product/service
- Your customer
- Your competition
- Distribution (and how you will get your products/services out there)
- Marketing and advertising, including PR, social media, and paid campaigns. Pricing is important too!
Finally, once you’ve got all of that figured out and launched your business with a bang…what comes next?
What Is The One Action I Must Take Every Day That Moves Me Closer To Launching My Business?
There is no single right answer.
What works for one entrepreneur may not work for you.
The best way to answer this question is by thinking of your business as a process, with an end goal in mind.
What do you want to achieve?
How will people know if your company has been successful?
Once you know what success looks like and how it will be measured, then focusing on the daily actions that move you closer to achieving it becomes easier.
Answer These Business Questions Before Starting And Get Success
You need to answer these business questions before getting started on your business:
- Why do you want to start a business?
- What are the biggest challenges you face as an entrepreneur?
- Do you know what makes your company unique from other similar companies in its industry?
Who should answer these business questions before they get started on their businesses:
Any person who is thinking about starting a new business, especially those that are already established in some way (for example, if they own their own small business).
Return To The Top Of Business Questions
If you enjoyed this episode with Michael why not listen to some of our favourite podcast episodes such as Jack Canfield, Nick Ruiz, Sarah Caltieri or the amazing Alexandra Stockwell
Or if you prefer just pop over to our podcast archive for thousands of amazing episodes to choose from.
