New Topic
Post Reply
Follow Topic
Does this business offer a needed product or service:
When planning to start a business, the entrepreneur must consider the product or service that is going to be offered. Some research must be done in this area. If the business is going to be started in an area that is already saturated by identical businesses, it will take much longer to become successful if it ever does. Competition can be deadly for new businesses. This is not to say that the new business will not succeed, it will just take a lot more creativity on the part of the entrepreneur to ensure this success.
Where should the business be located:
It would be unwise to locate a business selling snow skiing equipment in southern Texas or Florida, just as it would be unwise to locate a lawn care service at the North Pole. These sound like silly examples, but many people do not consider their location when deciding to start a business. It is important to decide what products or services are needed in the area where the business is to be started.
Why is this business being started:
There are many good reasons to start a business, however, the answer to this question should be one that ensures the business is being started for the right reasons. An entrepreneur should not be starting a business simply because they are upset with a similar business in the area. The existing business probably has a large customer base that is actually satisfied with that company and will not switch services.
How profitable will this business be:
This is another important question to consider when starting a business. If there will not be a lot of room for profits, there is really no good reason to start a business. Yes, some businesses are more profitable than others, but profits are what keep the doors open which in turn enables the entrepreneur to pay his/her bills. Therefore a lot of thought and
research should be placed in answering this question and it should always be answered honestly. If the entrepreneur is not willing to answer this question honestly, they should not be starting their business. If the answer ends up being that there is little or no room for profit, a different business should be started.
Who will the customer base consist of:
This is an important question that can help answer many of the other questions listed. If the customer base will consist of young college age individuals, it would be wise to locate this business in a college town where the appropriate customer base will reside etc... It is silly to think that a business can be located anywhere and be successful.
What will make this business stand out from the rest:
There should always be something that makes the business stand apart from the competition. This helps to ensure success and profitability. This could be something as simple as a low cost guarantee or as extravagant as customer loyalty discounts, but something must make the business stand out in the crowd.
How will this business be marketed:
Every business must be marketed to be successful. Word of mouth is great, but it will not do well with a new business that no one knows about. There will have to be some sort of advertising to get the business off the ground whether it is television ads, newspaper ads, internet ads or some other form of advertising. Watch the television some day and pay attention to the ads that are there. Without advertising, some of the biggest and best businesses would not be nearly as profitable as they are.
What expenses will be involved in starting and operating this business:
This is another question that must be answered as honestly as possible as it will directly affect the profitability of the company. If there are going to be too many expenses involved in the every day operations, the factory will soon fail. There must be a balance between income and expenses to ensure success.
How long will it take for this business to become a profitable venture:
This question is important to answer correctly. The longer it takes for a business to "pay for its self", the more money is required at the time the business is started. If there is not enough money to see the business through from start to profitability, starting the business is just a waste of time and money. A business owner must be able to keep the doors open during the start up phase and keep the doors open until profits are noticed.
-------------------------
