3 Questios To Answer Before Starting A Business
I definitely know the feeling of diving into something without knowing exactly how it’ll work out. And for anyone starting up a brand new business, every day probably feels a lot like this! To help you navigate the great unknown of the entrepreneurship world AND figure out if your business idea has legs to stand on, I’ve come up with 3 well know questions every entrepreneur must asks before starting a business.
1. HOW ARE YOU DIFFERENT?
You have to know what makes your business idea different from the rest. What’s your special ingredient? Why would people come to buy your products and not go to the competitor? Your answers will be what will help you as you work on your marketing and communication. What makes you different is the lifeline in any business; you have to be able to stand behind it and believe in your approach, concept, product and mission in order to attract customers. Because when the days gets tough this will be your only motivation. I've been running my business for close to 2 years now and boy do I know how it feels to stand firm on an idea that seems to not be working.
2. IS THERE A DEMAND?
A great advice i learned from Tony Robbins is that, the simple way to see if there’s a demand for your idea is to use the Google Keyword Search tool to see how many people are searching for your product or industry. He then says the second best way is to test it out by getting it in front of people and seeing how they will respond to it. This you do before you even think of writing a business plan, which I’m not a big fan of by the way. Testing and testing out your idea or product on real people will give you an inside on What your future customers what, before you even invest money into a product that people don’t want. What do they reach for first? How do they respond to the price? Do they understand your mission? You’ll get all of these important answers much quicker when you can set up a test run at a farmers’ market for example or a pop-up shop or anywhere with high foot traffic.
3. CAN YOU SCALE + PROFIT?
Take into account all of your costs (product costs, labor, rent, website costs, etc.), and figure out how much you need to sell to break even. Then, once you have your break-even point, determine if you can sell above that in order to make a profit. Give yourself the opportunity from the beginning to be able to scale. For example, if you’re personally sewing a label onto each product, and then you get an order for 1,000 that need a quick turnaround, could you do it? If your answer is no, try to adjust your operations so you’re able to fulfill high numbers (even if you’re not receiving high numbers yet). You always want to be ready for the opportunity!