While some people may be resolving to start a new fitness routine or give up a bad habit in the new year, others may be hoping to start a business. The feeling of a fresh start and the boost of motivation the new year brings can be the catalyst necessary to finally leap into entrepreneurship.
But business ownership isn’t for everyone, and some aspiring entrepreneurs may be more excited about the idea of owning a business than they are about the sometimes tough realities that come along with it. To ensure you’re ready to take up the challenge, consider the following 12 questions as outlined by the members of the Young Entrepreneur Council to determine if starting a business in 2024 is right for you.
1. How will my business provide value?
Providing value comes in two forms: solving a problem or satisfying a need. To define the answer, it is critical to look into four key factors: target audience, market validation, competitive landscape and profitability. Start by defining your target audience and how they will benefit from the service offered. Then assess the market for the service and the competition by researching businesses related to the service to establish how your solution will differ. Also, look into profitability by calculating potential costs, pricing strategies and revenue projections to determine if your business idea can generate a sustainable income. – David Henzel, Love not Fear
2. How sustainable is this business for the long term?
An important question to ask yourself is how sustainable your potential business is—financially, personally and with regard to the ever-evolving market and technology landscape. So, do you have the means or funding required to launch, maintain and grow this business? Are you prepared to make the personal sacrifices it takes to run your own business? And how relevant do you expect this product or service to be in five or 10 years? These questions are all important to address prior to launching a business because if you don’t have the finances or level of commitment required, or you’re behind the curve, it’s probably not worth the investment. – Samuel Saxton, ConsumerRating.org
3. What unique problem does my business solve?
Before starting a business, one critical question to ask is, “What unique problem or need does my business solve?” Understanding the market demand and identifying the value proposition ensures a viable business concept. This question drives clarity, guiding the development of products or services tailored to meet specific customer needs. It lays the foundation for a purpose-driven venture, enhancing market relevance and increasing the likelihood of sustainable success. – Alfredo Atanacio, Uassist.ME
4. What is my go-to-market strategy?
What is your go-to-market strategy? How would you promote your business, and what would you do to reach your target audience? Many great business ideas never work out because people believe their product or service is so good that it will simply sell itself. Unfortunately, it doesn’t work like that anymore. Even the biggest product-driven brands end up having sales and marketing departments because the competition is extremely fierce. Most markets are already saturated with offers. I’m sure you’ve seen amazing products fail and mediocre ones thrive. This is not an accident. If you want to succeed, prepare to invest in marketing and sales. – Samuel Thimothy, OneIMS
5. Is there a real need for my product or service?
Understanding market demand is crucial, because no matter how innovative or excellent your idea is, if there’s no demand, the business won’t be sustainable. This question helps validate the business concept and can guide the development of a value proposition that resonates with potential customers. – Kristin Kimberly Marquet, Marquet Media, LLC
6. Do I feel passionate enough about this business?
The most important question someone starting a business should ask themselves is if they are so passionate about it that they would be willing to work on it for the next decade. That’s because it often takes a long time for a business to gain traction, and if motivation lags or interest in the topic area is a more recent thing, the business might not be around by the next new year. Thinking about the new business as a practical and long-term investment of time and “sweat equity” means it’s more likely to succeed. If the business idea is more of a side hustle or to explore hobbies, then having the expectation that it’s for fun and not profit may be a better way to approach starting a business. These types of “training businesses” are useful too! – Nathalie Lussier, AccessAlly
7. How much funding will I need, and where will I find it?
Depending on the kind of business you are opting to start, funds will be needed to cover the basic costs (such as office space and equipment), operating expenses (such as salary and rent), ongoing marketing costs, and growth until the business makes a profit. Do a brief analysis to arrive at an estimate that can help you determine how to fund your business. Also, consider taxes and other financial responsibilities that come with running a business, and make sure to include those in your funding estimate. You can self-fund or explore alternatives like investor funding, business loans, credit cards or grants. Being realistic about your funding needs and planning for them helps you avoid financial problems in the future. – Brian David Crane, Spread Great Ideas
8. Am I in a position to be successful?
It’s important to ask if you’re in a position that sets you up for success. No, you will never have all your ducks in a row, but it’s critical to recognize that success takes time. Are you able to wait a year or more before you start seeing a return on your efforts? Business does not come without risk. Are you in a position to weather the storms, pivot when necessary, lean on the reason you started in the first place—your “why”—and see it through? Do you have the necessary grit? Is your business idea aligned with what you feel your true purpose is? If your answers to these questions are strong, then yes! Start the business. Use that first year or so especially to ask questions, embrace personal growth, lean on a mentor and collect experiences. – Blair Thomas, eMerchantBroker
9. Do I have a clear path to profitability?
Ask, “What is my path to profitability, and how long can I sustain the business before reaching it?” A clear path to profitability is crucial. This includes calculating the cost of operations and setting realistic sales targets and pricing strategies. It’s essential to understand the business’ “burn rate” and to have a financial buffer to support operations until the company can generate sustainable profit, as this directly informs the financial strategy and funding requirements. – Joey Burzynski, MarketKarma
10. What is the right pace for my business?
You can take small steps toward building a business, or you can dive straight in. When deciding the pace that is right for you and your business, consider your current time constraints in a very practical way. It takes a huge amount of time to start a business if you are diving straight in. If you are breaking up tasks weekly, this can be much more manageable, and you can handle any speed bumps that come along—and there are going to be many—with a more measured approach. Some might even consider monthly goals, such as completing a business plan by February with a launch by November. The pace is really important because it speaks to how you will delegate time and meet goals. – Matthew Capala, Alphametic
11. Am I willing to sacrifice parts of my personal life?
The biggest question someone should be willing to ask themselves is if they are willing to sacrifice on the personal side to give attention to the new business venture. Starting a business is tough! It is hard work and requires you to wear many hats. You are going to have to do things you do not like in pursuit of the things you love. To get there, you are going to have to give up on something to put in the time required. It will be tough, but it will be worth it. – Zane Stevens, Protea Financial
12. Am I willing to seek and invest in help?
Are you willing to hire a business coach to invest in yourself and help you with strategy, cash flow and execution? If you were serious about getting in better health, you would likely consider hiring a nutritionist and personal trainer, along with purchasing any material things you need to help your health journey. The same approach applies to business. A business coach can help you get to where you want to be in revenue by telling you what tools to purchase to build the foundation of your business. – Givelle Lamano, Oakland DUI Attorneys
Source: Forbes