5 Questions to Ask Yourself Prior to Starting a Business

Whether you are moving from one career to another after Active Duty Service or just leaving the world of working for someone else. Starting a business is a trend that doesn’t seem to want to go away.  Self-Employment stats are out there for you to do the research. It’s a trend that continues to rise.  While the idea of starting a business sounds easy. Keeping the business going requires patience and perseverance.  They say 51% of new businesses survive the first 5 years.  Do you want to be the one that survives the statistics? We’ve come up with 5 questions to ask yourself before you start your business to help you determine if you are really making the right choices.

What’s your WHY? 

This is such a popular topic these days. For a reason. Not enough people are asking themselves this. As a child, the number one question they ask is: WHY?  Take the time to list down the reasons you want to start a business. Go through them, then ask yourself what will be around still in a year, or 5 years even if you pivot.  What drives you?

How do you define “Success”? 

“There is no passion to be found playing small — in settling for a life that is less than the one you are capable of living.” — Nelson Mandela  

Ask yourself, is this a side hustle? A hobby? Does this “idea” or passion keep you up at night with excitement?  Can this be something that will grow and keep up with trends? Just because you love something doesn’t mean you need to run a business off of it.  Thinking of starting a business but not sure how you define success?  Ask yourself, how do you want your business to make you feel? What do you want to be associated with? What do you want to be said about you? Ask yourself these serious questions and then do you see the long term in those answers. While it’s tempting to get into the entrepreneur pool and splash around, really consider if what you want to do will bring you the freedom and success you dream of.

How will you fund this business?  

Ask yourself, can you fund this on your own? How much debt will you go in to start it and how long will it take to pay that debt off? Not all businesses need a lot of start-up money to begin but don’t fool yourself to think you don’t need any. Walmart founders Sam Walton and brother Bud opened their first store with $5,000.o0 and a $25,000 loan from the bank. We all know where that led them to today. Which then leads to will you need capital to start your small business? If you have to raise capital, is your business plan powerful enough to attract investors?

Do you know who your competition is? 

How will you position yourself in your business? Do you know everything you need to know about others in your field?  Are you opening an Italian restaurant for instance, and think you have the best spaghetti sauce? Who else in your area will you be competing with?  Ask what will you offer that your competition doesn’t? What will make you stand-out?  What will drive clients to buy YOUR product vs another?

How will you exit your business?

Exiting your business doesn’t always mean failure. Sometimes, it’s a business owner’s strategic plan to sell their business and move on to their next idea.  Sometimes it’s a way to save yours and your family’s personal investment in a business.  This gives you a way to reduce or liquidate your stake in the business.  If your business has been successful, you may be able to sell and make a significant profit.  This plan should be made as early as you start. Having an exit strategy in place not only gives you peace of mind on IF your business fails to thrive but gives you a plan of even retirement and when to know ‘when it’s time to pass the torch’  to someone else.

You can also enjoy this podcast on Discovering Your Talent to Build a Career of Success here.