May 28, 2017 at 9:23AM
Answering these questions up front will help entrepreneurs improve their chances of success.
Are you an entrepreneur thinking about starting a new business? If so, you're not alone. More than 640,000 new businesses on average are launched in the U.S. each year. In many respects, small businesses serve as the lifeblood of the nation's economy.
But taking the leap by starting a business isn't for the faint of heart. The reality is that half of all new businesses are no longer around five years after being formed. That's why it's smart to fully think through how you plan to succeed in advance rather than winging it after launching the business. Here are 10 questions every entrepreneur should ask before starting a new business.
1. Why am I doing this?
This is probably the single most important question for entrepreneurs to ask themselves. If you want to get rich quickly, for example, you'll probably soon become disillusioned and throw in the towel. The new businesses that do succeed usually take several years to do so.
2. What problem am I trying to solve?
Entrepreneurs need to nail down the problem they want to solve with as much detail as possible. If you're not solving a specific problem for which customers need a solution, failure is virtually guaranteed.
3. Can I realistically solve this problem better than others can?
After identifying the specific problem you're attempting to solve, write down exactly how you intend to solve that problem. If you can't, you're not ready to start the business. Next, make a list of existing companies that also attempt to solve the problem, along with their solutions. Honestly evaluate if your solution will be better than theirs. If it is, you're on the right track.
4. Who is my target customer?
Think carefully about who your target customer will be. Be as detailed and specific as possible. Remember also that sometimes your actual customer base isn't limited to who uses your products and services. For example, if your business provides products for children, it's their parents who will buy the products that are as much your target customers as the children themselves.
