20 Qs BEFORE you start a Business
1. What 3 things do your family & friends always turn to you for advice?
Before you start a business, it is good to remind ourselves that as humans, we rarely stop to really think about what our gifts are in this world. I mean that’s an ego thing, right?
But, hear me out, there will be 2-3 things that your family, friends and colleagues always turn to you for advice around, and one of those things is really what you should be basing your business around if you want to do something that you are naturally good at and is no effort for you to shine.
Generally, this thing is something you do every day without giving it a second thought. If you are unsure, then start asking.
Send an email to a group of trusted peeps and ask them what they associate you with and what they always turn to you for advice around.
I promise you it will be worth the discomfort of sending the email and honestly if you are not brave enough to do this, you will really struggle to start a business.
2. What do you get lost in for hours when doing it?
You know that hobby or interest that finds the hours slip by on the clock without you coming up for food, drink or to see if there is anything burning down around you?
That thing is generally the thing you should be doing in this world, or at least it should be a large part of whatever your plan is when you start a business.
Let me tell you why…. As a business owner or a Sole Trader, you will be putting in more hours, more tears, more anxiety, and more fears than you ever thought possible while “working for the man” so if you can’t do something that you easily get lost in, then perhaps your idea to start a business may not fly.
3. What is your desired feeling in life?
If you have never heard of Danielle LaPorte I highly recommend her. She teaches the idea that we should be reaching for our core desires not a title.
If for example, your desired feeling in life is to be FREE, then having an online business would be perfect, although if you think working for yourself will leave you with loads of free time for the first few years, you may want to rethink that idea.
If your core desired feeling is SECURITY, then a brick-and-mortar business or maybe working for a big company is more your speed.
I have found that figuring out what you want to feel in life can play a huge part in what you reach for as a career or business and it can also keep you on track when things feel like they are getting on top of you.
Reaching for a feeling is often more powerful than reaching for a goal.
4. What is your business idea in one sentence?
When you start a business you are going to need to be able to tell the world about what you are doing. All the time.
This is also known as an Elevator Pitch, as you would need to be able to explain what you do in the space of an elevator ride.
If you can’t explain what your business is in one sentence, then going back to the drawing board and refining it a little is a major priority.
Less is more.
You will be saying this sentence a gazillion times in the coming years so make it easy on yourself.
5. What problem are you solving if you start a business?
In case you hadn’t considered it yet, every business solves a problem for another person.
If it didn’t, they wouldn’t need you, your product or your services.
Be specific about what it solves.
6. Who are you solving this problem for?
When you start a business, it is actually more important to know WHO you are solving the problem for then almost anything else.
The person you are solving this problem for is going to be your Ideal Client (IC), and knowing who your IC is will dictate your branding, your font, your imagery, your colours, your flourishes and swirls, the way you talk in your graphics, how long or short your articles and blog posts are and if you sign off with “Love & Hugs” or “Kind Regards” (yes there is a place for both!).
Essentially, when I work with website clients, nothing gets created, no pen is put to paper without first knowing who your IC is in intimate detail.
7. Why do you want to solve this problem?
Is the problem you want to solve your problem also?
Most of the time it is, which is great as you will be able to speak from experience and why we are drawn to start a business around this in the first place.
If it is not your problem, is it affecting somebody you love and care about or have you just seen a gap in the market and thought “What a great idea”.
Every good business though is underpinned by a “Why”… what’s yours?
8. Is this a business you can be passionate about for many years to come?
This is where your “why” often comes into play.
If you are in this for the long haul, you need to be really sure it’s something you want to talk about, think about, dream about and physically do for the foreseeable future.
Think really hard about this question now, it’s easy to be excited in the planning phase, but 3 years down the track it will be a different story if you are not absolutely committed passionately to this service or product.
9. What resources will you need to start a business?
We are talking $$$ here. How much actual cash do you need to start a business?
Whatever your currency, dollars, pounds, francs, rupee, yen you will need some to get this business moving.
There are biz names to register, domain names to be purchased, websites or membership sites to build, email list campaigns, graphic artists, bricks and mortar, staff, and uniforms, the list is endless.
A business plan will expect you to know exactly how much capital you will need to get started.
If you don’t know… guess.
Just start a list and as you add items if you are not sure of the cost then Google is your best friend.
Your final magic figure will dictate if you are financially able to start your business or if you need to acquire a loan, or perhaps find a partner.
10. What qualifications and insurance do you need before you start a business?
So I heard you are setting up a health coaching website because you love being healthy and somebody else said you should teach that?
What happens if you give a piece of advice that seriously puts a person's health at risk because you did a 10 week course on health instead of a 4 year degree?
I can’t stress this enough, before you start a business giving ANY kind of advice, cover yourself.
Have the qualifications for what you are selling (particularly if it is a service) and get the appropriate insurance to back you if something goes wrong.
Before you start a business in this area, join the governing body of your profession. If you aren't eligible to join that association, they ask yourself if you really are qualified to start a business helping people in this way?
Perhaps you could change what you are offering so that it is not dependent on your advice but still helps the people you want to help?
Also, be a part of any associations that also back your qualifications as they can be a huge help when it comes to anything going wrong.
I don’t like to focus on the negative, but it is a must to know you have a soft place to land if you need it.
11. How much income does this business need to earn and when?
When you start a business, often it is a side-hustle and only needs to support itself.
Meaning it only has to earn enough money to cover the costs of running a website and social media platforms.
Perhaps you only want to start a business to give you extra holiday money or pay the mortgage off quicker.
If you want it to replace your full-time job, then let’s get sensible and figure out how much is the minimum you need to earn to do it and what the deadline is.
After you have arrived at this, also add a Plan B for what you will do if you haven’t achieved this goal.
12. Is this a business that will require more than just you to run it?
Before you start a business, ask yourself if your business idea requires a factory with 50 staff or just yourself, your laptop and the cat at your feet?
Know realistically what staff costs, and what are your responsibilities with paying staff including all the extras such as superannuation and holiday loading, before you decide on how big a building you lease or how big of a capital loan you will need to ask for.
13. Who will run the business if you are ill or want to go on holiday?
Ahhhhhh I am betting in the daydreaming about your wildly successful business that lets you travel and have long lingering lunches with your amore right?
You didn’t think about what happens if you are not actually able to run your business right?
If there is nobody else that could physically run your business for you, what then are the implications of you not being there?
Is it the type of business that would be ok for a few weeks? Or would everything fall apart overnight?
If it is the fall-apart kind, then you will be needing a kick-ass Business/Operations Manual that outlines everything from the day-to-day running, to how to speak to your IC, and at least 3 people willing to step in if needed (oh, and they should know they are on standby for this job wink wink).
14. What are your business strengths and weaknesses?
Unless you have a kajillion dollars behind you when you start a business, odds are you will fill every role in all departments of your business.
The bookkeeper, graphic artist, marketing manager, social media manager, human resources, CEO, shipping department, kitchen hand and janitor.
Knowing your strengths and weaknesses will help you to decide the first of the jobs that get outsourced.
If you are rubbish at social media because or quite frankly you simply hate it, then hiring a social media manager to take care of it would be money well spent considering social media is the new Yellow Pages.
Know right from the start where your strengths lie and have a game plan for the rest.
15. Who is going to be the face of this business?
Insiders Tip: People buy from People.
Seriously, they don’t buy from big companies in most cases.
It will be the salesperson that always remembers their name or the friendliness of being inside that building.
Have you ever purchased something from a business that was more expensive than the last place but they were friendlier and took more effort with you?
Have you ever gone Doctor shopping because you don’t like the bedside manner of the one you see now?
Whether it is services or products it doesn’t matter, people buy from people, so the question is: “Are you willing to be the FACE of your business?” Are you willing to be SEEN (that’s a tough one for many people) or are you wanting to hide behind the scenes?
If you are a hider, a hermit of a loiterer, then who is going to be the reason people buy from you?
And no, a pretty graphic won’t cut it…
16. Who is your competition?
So you are ready to start a business that NOBODY else is running?
Wow, that's amazing… now google again, you didn’t do it right.
Everything has competition.
Sometimes though we don’t go ahead and start a business idea because we think we have too much competition.
Another way to look at this is that if there are a lot of businesses doing it, then a lot of people are needing it, and perhaps you have a new and unique way of saying it, doing it, presenting it and wrapping it.
Every good business plan has a detailed list of its competition.
17. Where will this business be run from?
Home office? Under the stairs? A table at the local cafe? An actual office? A room inside somebody else’s office?
There are many options.
I know somebody who had a brick-and-mortar office for 30 years in the advertising industry. He realised one day, he always met his clients at cafes and the rest was phone calls and emails, so he rented out his office, set up at home and saved himself a fortune.
Be creative as to where you can work from if you can.
I have worked from a cafe all day at times, and they are always more than happy for me to be there.
So before you start a business, think very logically and strategically about where it could actually be run from. Think outside the square on this one... you may surprise yourself!
18. What is the first 5-year goal for this business?
Yes, I see your eyes rolling at me!
I know you are deep in the honeymoon phase of just dreaming about your beautiful business that is going to solve the world's problems, but ask yourself what you want it to have achieved in the first 5 years.
Then work backwards… How do you reach that goal?
If you can’t see where your business could possibly be in 5 years or even fantasise about it, then more thought should be given.
This could be a financial goal, you want to be earning $xyz, or you want it to replace your current income working in a corporation or it could be a people’s number like you want to have enrolled x number of students by that time.
It could be growth, you want to be working ON your business in 5 years not IN your business meaning all day-to-day running is taken care of by staff members and you are free to grow your business.
Dream big. Where are you in 5 years?
19. Who are your mentor’s going to be?
Did you notice in the very first question I suggested you ask your family and friends what your gifts are BUT I did not suggest you ask them what they think of your business idea?
Our loved ones are great, but the word “loved” is the very reason you should not discuss your business idea with just anyone.
Our loved one’s opinions will be coloured by their perceived outcome of your business and they don’t want you to be hurt in any way so telling you it’s a bad idea or it won’t work is simply their way of protecting you.
In business we need mentors.
People who have been there, who understand the language, won’t sugarcoat the possibilities and will sit with you to find solutions through the good times and bad.
These can be paid business mentors or coaches, but they could also be colleagues and acquaintances that know their stuff and are willing to walk the path with you.
You will need at least one to turn to, so having a list of possibilities is a great business move.
20. Did you find this set of Questions tedious and hard?
Then you probably should stick to working for somebody else!
Working for yourself requires so much tedious and mind-sapping paperwork.
Some of these questions are normal to include in a Business Plan (which you should have by the way, and update every 3 months in your first year) which you need if you are looking for a capital loan from your bank to help launch your business.
It never stops, even if you earn the income to employ somebody to do the paperwork, the business planning and growing is still on you.
Final Thoughts…
Before you start a business of any kind, I would like to ask you if you got to this point with a notebook beside you with scribbles for every question?
I applaud you if you did! But if you read all the questions and are now reading these words knowing you are going to close the window and walk away because you have more important things to do that aren’t going to be a buzzkill on your dream business, then perhaps it’s not for you.
And you know what? That’s ok too!
I know you will be amazing at whatever you do and I hope some of these questions helped you to discover a little bit more about yourself.
Final thought is that if you got this far and you are ready to test your Business Name Idea (admit it, you already have one you are in love with) then this is the next list for you to check out: 20 Questions to Ask Yourself Before you fall in Love with Your Business Name!
