Those who want to launch a business should know that a good preparation is always half the way to success. It is also important to know your strengths and weaknesses when you start a new road. And launching a new business offers, along with many chances, risks. You need to know them and take them into account. The key to success is hard to find, but I will help you answer 9 questions that every first-time entrepreneur should take into consideration.
1. How your customers will look like?
Are they men, women, living in a big city or a small town? What studies do they have and what income do they get each month? Are they retired or students? Make the portrait of the person most likely to use your products/services. Your success rate depends directly on this.
Tip: learn how to boost your success rate by 78%!
2. What is the right location for my business?
If you want to open a restaurant the location is vital. The same for a classic shop. Yet, if you open an online business your location is replaced by the web domain you book. Your target are people living in Spain? Then book a .es domain. If you aim the international market go for a .com domain.
3. What price is the market willing to pay?
Before starting to invest your money make a market research. Check how much others are charging for the same products/services. Check if there are people willing to pay more than the market average for a better quality.
4. How do I get my products to the customer?
This is a point that first-time entrepreneurs often overlook. They take into account all costs, except the logistic ones. Will the customers come into your location or do you need to deliver? How will you deliver your products and how much will that cost? Do you need to have extra employees for this?
5. How can I expand my product/service range?
Beside you main product or service think about other closely related goods that can bring money in your pockets. For example, if you own a coffee shop in the city center it might be a good idea to have some city maps and souvenirs to sell. Probably a lot of tourists cross your doorstep each day.
6. What are market’s short and long-term perspectives?
Most of us heard so much about long-term plans. How you need to think about the future and so on. This is absolutely necessary for a business, but don’t neglect the day after tomorrow. Many first-time entrepreneurs miss this one. They build a long-term plan, but they don’t take in consideration the immediate future. If the market is not ready yet for your product/service your company might not get to implement your long-term plan.
Tip: to understand the real importance of this point read top 5 factors that influence a startup. Infographic included!
7. Who are my competitors and what are their strengths and weaknesses?
Check your competition. What do they do best, what are the points where you can bring something better or new? How do they attract buyers? How is their company organized?
8. Why would a customer buy something from me?
Try to figure out what makes you unique on the market. Why someone would give you money for what you do. For the low price, for the quality, for some extra feature, design or proximity? What motivates the customers?
9. What are my priorities when it comes to spending the available capital?
As a first-time entrepreneur, you probably think about how much money you need to put on the table when starting a business. As you should. The harder step is to spend them wisely. Make sure you know the core that keeps your business running and invest in it. Don’t throw money on the latest Macbook if you can do the same with your 2 years old one.
Tip: learn more about how to manage your financials. A good money management in private life will reflect also on your business. Infographic included!
I hope these questions and the answers you’ll get will bring you a step closer to a successful startup. Being a first-time entrepreneur is no easy task. Make sure you keep your focus and don’t give up at the first bump. Let me know if you have other advice or ideas that will help a first-time entrepreneur to succeed. Thanks!