A lot of people want to quit their jobs and start businesses, starting a business is really good but the only problem is a lot of people do not know what they are getting into and some are even doing it for all the wrong reasons. Statistics shows that out of every 1000 new businesses, 40% fail within the first year, and 80% would fail within 5 years. Even if you have made it to 5 years, you can’t afford to celebrate yet because 80% of those businesses fail before they make it to 10 years. That leaves us with 4% of new businesses still around after 10 years. If you can ask the right questions and provide answers to them before start up, then you are a step closer to succeeding at that business you have chosen. In this article, I have identified the basic questions that if properly answered will guarantee your success as an entrepreneur.
Why am I starting a business?
This is perhaps the most important question you need to provide an answer to. This requires you taking a deeper look inside, try to figure out the motive, the driving force behind your decision to start a business. There are obviously a thousand reasons to start a business but some reasons are really inappropriate. If your reasons are things like I’m tired of working for my boss, I want to make a lot of money or I want to prove to someone that I can make it, my advice is you should probably not start that business. If on the other your reasons are I have a solid idea, I want to help a certain class of people, I want to transform the way something is being done, then I will advice that you quickly begin.
Will I do this business if money is not involved?
This is the question I always ask myself all the time I want to get myself involved in a business or project of any kind, it’s a matter of passion. Whatever business you want to start, make sure it’s something that you have a passion for and at the same time, the natural abilities and skills required to get that job done. The reason for this is that tough times will definitely come and the only thing that can keep you going when they come is the passion you have for what you are doing. One of Warren Buffet’s partner Rose Blumkin who managed the Nebraska Furniture Mart worked 7 days a week every year and she didn’t retire until a few months before her death, which was few days before her 105th birthday. She even said that the only time she ever took a vacation for a week was the worst time of her life.
Who will I be adding value to?
The reward for value is money; the amount of money you make is directly proportional to the amount of value you add. You first need to be clear on what value you are providing, what makes it unique? Who is already providing a similar value? Will you be willing to pay for it? Can it be measured in terms of money? Once you have done all these and your answers are positive, then I believe you are on the right track. The next thing will now be to identify who you are really adding value to and come up with answers on the best methods and strategies to reach them.
Do I really have what it takes?
You need to be very honest and sincere when answering this question. The truth is that if you are staring a new business, then you must be willing and able to perform multiple roles. At inception, you are everything in that business and you must be willing to act in whatever capacity necessary to move the business forward even if it means doing some odd jobs. You also need to check if you have the skills, ability, experience, resources and the people you need to make the business work.
How will I raise funds?
This is the final question you need to answer and it’s just as important as the four we’ve already discussed. You need to understand that money is the fuel that drives your business and just as your car will stop working if there is no fuel in it; your business will also stop working as soon as you are out of money. So what do I do? You need to do a little analysis on how much you will need to run the business for a year, and then begin to raise the estimated amount. Here are a few ideas on generating funds:
- Personal savings
- Family members
- Partnership e.t.c.
Once you have successfully answered all these questions and you don’t deviate from the standards you set for your business at inception, then your success is inevitable.