4 Questions You Should Answer Before Starting a Business

4 Questions You Should Answer Before Starting a Business

Illusion and big dreams are essential to start a business. However, they are not the only important elements in setting you up for success.

In fact, it is common to see businesses that start with a lot of enthusiasm but that after a few months of operation, they weaken and stop producing the expected profits. And the most worrying thing is that their owners can hardly explain the reasons.

Therefore, today we will talk about at least 4 questions to answer before starting your business and that they are decisive for you to start your company on the right foot and grow healthily over time.

  1. Who will attend the business? You must clearly know the days and hours of your business and establish who or who will be in charge. Will you be present as an owner? Do you plan to pay for employees who attend and operate? and who will be in charge? Defining this point is fundamental because the good supervision of the personnel, the quality of Customer Support, and it implies important costs that you must consider in your budget from the beginning.
  2. Where will the capital come from to open the business? Just as important as the first or even greater question is to have complete clarity regarding the initial investment. Many businesses quickly drown when the financial situation is not clear and stable enough. It is key to know where the funds will come from: from your savings? Loans? Capital from other partners? Family support? Etc. And then, you must complement those questions with: how will that money or the interest it generates be paid? Finally, it is convenient to have a minimum projection of the first year of operations in your budget considering all these costs.
  3. Who and how will sales be promoted? You may think that this question is not relevant enough to go here. However one of the main reasons why a business does not grow it is due to the lack of sales or product rotation. Many entrepreneurs are very skilled in technical or even administrative matters, but they leave sales as the last priority when these are the ones that make the difference in the successful business. You must have a sales strategy that clearly states Who will sell? How will they do it? and that you have clear goals to achieve in periods of 3 months and 1 year to start.

Last but not least, it is convenient to do a self-assessment and be clear about the reasons why you want start your own business: By self-realization? By fulfilling one of your dreams? Why do you want to leave your current job? Because all your relatives are entrepreneurs? Anyway. I’m sure the answers are varied and will allow you to clarify your thoughts.

Of course there are other questions to answer before undertaking, however we consider these to be the most important, and always remember, the more time you dedicate to plan your business, less time you will have to spend correcting and solving unforeseen problems.

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