You are probably considering starting a new business with your retirement fund or starting a side hustle to support your income. Whatever reason you may have for starting a business, there’s no doubt that you have been asking questions about getting started on this new adventure. You’ve done countless hours of research about your market, but you still have some frequently asked questions on starting a business that is bugging your mind.
Starting a business can be the most thrilling and scary thing to do at the same time. But before you begin to doubt your success and start procrastinating, you should know that there is no precise formula for succeeding in your business.
The best you can do is take guided steps and be well informed about your new business before starting.
Yes, you have your doubts and challenges. You lay awake at night thinking about funding, niche, staffing, revenue, and more.
Have you stopped a few times to consider the risks of your new venture? Is your business idea lucrative and innovative enough?
So, before you take a deep dive into the unknown, here is a list of frequently asked questions on starting a business you should consider.
#1. What Kind of Business Should I Start?
One of the most frequently asked questions on starting a business is the kind of business to start. The first rule of starting a new business is doing what you are passionate about.
Remember! You will have to take risks, so pick a niche you are passionate about even when you are frustrated. It’s the passion that will keep you going when the chips are down. What keeps you awake every night? What have you been consistent with over the years, even when you are busy?
#2. Is There a Market for My Passion?
Market research is also one of the frequently asked questions on starting a business. What opportunity can you explore within your niche? is there a market for your passion?
Conduct market research to understand the flow of the economy in your desired industry and scale up your success rate.
#3. Who Are My Competitors?
You need to understand your competitors so you can understand the market. Stay aware of both direct and indirect competitors. Check out their strengths and weaknesses, so you can build up unique ideas that will attract customers.
#4. How Much Money Do I Need?
The fact that you are passionate about something doesn’t mean you can afford it. For instance, you might be passionate about solar energy but might not start a company in that industry. Therefore, when starting a business, try to project your expenses in the first year to see if you can afford them.
Furthermore, consider how long it will take before your business becomes profitable. Many entrepreneurs fail in business even after taking out loans and credit because they didn’t calculate the cost of starting a new business.
You wouldn’t want your business to fail, would you? So, carry out a cost analysis before starting your business. It will go a long way to save your business from failing. Here are some tools to help you get started.
#5. Where Do I Get My Start-up Funds From?
Funding is also one of the frequently asked questions on starting a business. Your start-up fund is not limited to money; it also includes skills and experience.
The answer to this question requires you to look within first. How much do you have? What can you leverage to get the funds you need?
For a new business, you want to get a funding source that doesn’t require immediate repayment so you won’t be financially pressured in your first year of business.
#6. What Should Be My Business Name?
Something as simple as your business name may be the only thing holding you back from starting your business.
Surprisingly, you may have everything ready, yet you can’t develop a name that fits your brand.
Let’s make this easy for you. Brainstorm on different business names and make a list.
Check the internet and run a trademark search to check if any of the names are already taken. Ensure that your business name is easy to spell, interesting, and represents your brand.
#7. What’s The Legal Landscape of My New Business?
The legal requirement is part of the frequently asked questions on starting a business.
There’s no better time than now to take precautions than when starting your business. Before investing time and money in that new business idea, discuss with your lawyer to know the legal requirement.
#8. Do I Need a Business Plan?
Yes! A business plan is important when starting a new business because it helps you create a blueprint for the success of your new business.
Having a clear mission, vision, and goal in your business plan creates a guide for the future direction of your business. When you begin seeking investors, it will help you articulate the potential of your business.
#9. Where’s the Best Business Location?
One of the frequently asked questions on starting a business is the location. Your location is crucial to the success of your business.
The difference between a profitable business and a bankrupt one can be as simple as a business location. Your business location should be both comfortable and profitable.
The best location could even be your home. Make a list of potential locations and compare different locations to know which best fits your business.
#10. How Do I Hire Staff?
You have to understand that you are your first staff. And you need to attract someone you can work with because it takes teamwork to build a business. You might consider hiring temporary staff or interns for a start until you have enough cash flow to pay a permanent one.
#11. How Should I Pay Myself?
Lack of financial discipline is one of the reasons most start-ups bankrupt within their first five years. So, if you want your business to succeed in the long run, pay yourself a salary that your business can afford. It will help build your business better.