Every day, we read the news of people who have become millionaires and even billionaires after starting their businesses. Now you are asking yourself whether to try your luck. Here are important questions you need to ask yourself before you open your own business.

1. How much are you going to invest?

Starting a business is about taking risks. How much money are you willing to risk? This question is more important than even deciding whether you are going to start a business or not.

Even if you have a lot of money, you need to decide how the specific amount that you want to invest and stick to it. Don’t make a mistake of pumping in more money if the business is not profitable.

2. Who needs your products?

Before you start your business, you have to define your customers. The product or service you want to provide must give a solution to a problem. You must understand the needs of your prospects.

The value of your investment is determined by its capacity to solve a problem. If you don’t know what problem your business will solve, don’t invest.  Here is some help defining your ideal customer.

3. Who are your competitors?

Before you start a business, you need to do a little research about your competitors. That is the only way you are going to know how you are going to define your business. You have to make your business different from your competitors.

Try to fill the gaps you feel your competitors are leaving. Give consumers a reason to prefer you over your competitors.

4. What leadership and managerial skills do you have?

Most successful business owners have some knowledge of management and leadership. As a business owner, you need to have some knowledge about managing your resources and staff. You must be an inspiration to your employees. Your skills are essential to the success of your business.

5. How profitable is the business?

Starting a business is more than just investing your money; it is also about getting returns. Is the business you are investing in profitable? How long will it take before your business starts making profits? How long will it take you to recover your investment?

Ensure you invest your money in a business that is profitable. After all, you want to get richer, don’t you?

6. Are you excited about what you will be doing in your business?

Running a business is an uphill task. It is a long term commitment. If what you will be doing in the business is what you really like, you have high chances of succeeding. When you are paid for doing what you like doing, you get motivated to even put more effort. Invest in a business that excites you.

Top 5 Questions About Running a Small Business

Are you planning to start your own small business? Do you think you have assembled all the necessary resources and are good to go? Well, just like running a million dollar enterprise, there are various questions you should never shy away from asking before you formally start a small venture. The following are some of the questions you need to ask.

How Small Should The Operational Space Be?

The fact that you are running a small business certainly does not mean you may never expand. As a matter of fact, it is the dream of any businessperson to expand and reach new clients and new markets. For this reason, however small your present operational space is, always keep in mind that you may one day need more space as your business scales new heights. It is important to note that space in this case does not only refer to the actual locale where your business enterprises situated but rather other prime locations in other areas where you may want to tap in.

Do I need An Accountant?

The answer is a simple ‘yes’. It is true that an accountant is perhaps the last person a small business owner may think of hiring. However, note that there are certain financial aspects of your business that you may find quite challenging. Take tax returns for instance, you will need the expertise of an accountant to help you determine how much tax you need to pay as well as oversee other financial aspects of the business based on the dynamics of cash flow.

What About An Attorney?

In the modern world of cut-throat competition, you may never be able to predict the extent to which your competitors may be willing to go just to gain undue advantage over you. Without knowing, you may fall victim of a disputed land or have lawsuits brought against you simply in bad faith. It is prudent, therefore, to have an attorney at the ready so they may help you overcome these legal battles, most of which are known to bring small businesses down to their knees.

How do I get the Money to Start?

The fact that you are running or intend to operate a small business does not mean you should also have small financial institutions be your greatest financiers. This is because the smaller the institution, the higher their lending rates. Additionally, when you invest your money with them, always note that smaller financial institutions may not stand the heat of lean times and may be forced to go under, making you lose your investment [or at least inconveniencing you big time]. For this reason, always insist on doing business with the big lenders. Focus on established commercial banks and other state-run institutions such as the central banks for security of your money.