7 Questions to Ask Yourself Before Starting Your Own Business | Get Your Business on the Right Track From the Start

1. Why are You Starting Your Own Business?

Put together a list of reasons why you’re starting your own business in the first place. A year from now, when you will not have seen daylight in 3 months because your startup requires your constant attention, which of these reasons will still be here?

So that you will be able to endure all the hardships that come with running or starting your own business, you need at least one “Why” that will be compelling enough and strong enough to survive the drop in quality of life you may suffer when things get tough.

Your reasons may revolve around the passion that burns inside you, the cause you are fighting for, or the very idea you want to turn into reality. Your reasons should not be things like:

• I have nothing to lose.
• I want to say, “I am an entrepreneur.”
• Everyone is doing it.
• It is the logical next step.
• A friend of mine proposed that we co-found a business and it sounds exciting. 

2. What Makes a Successful Entrepreneur?

The most successful entrepreneurs share certain traits and characteristics. These qualities are the reasons why these entrepreneurs are successful. Here are a few questions that can help you establish whether you will make a good entrepreneur when you’re starting your own business:

• Do you have a strong desire to be your own boss?
• Do you have significant specialized business experience?
• Do you have what it takes to persevere through tough times?
• Do you possess high levels of energy that you can sustain over long hours?
• Can you conceptualize the whole of a company?
• Do the judgments you make in life usually turn out well?

If you have three or four no’s, it’s best to rethink your idea of starting your own business. However, don’t let this discourage you.

If becoming an entrepreneur isn’t the best step you could take now, it doesn’t mean it won’t be sometime in the future. Enlist the help of trusted advisors such as SCORE counselors, accountants, business owners, and find your very own mentor. They can teach you how to become an entrepreneur.

At Growth Hackers, we’ve worked alongside countless entrepreneurs, witnessing firsthand how perseverance, leadership, and strategic thinking turn ambitious ideas into thriving businesses. If you answered with “yes” to most of these questions, great! However, these aren’t the only qualities you need to have. Consider the following as well:

• Willingness to sacrifice: You will need to work many more hours beyond the 40-hour workweek if you want to succeed. If you prefer working 9 to 5 and then relaxing in your free time, entrepreneurship may not be for you.
• Interpersonal skills: Aside from interacting with customers or clients, you will also have to talk to salespeople, lawyers, accountants, financiers, and a host of other people.
• Leadership skills: You must be ready to call all the decisive shots because everyone will be turning to you for answers.
• Optimism: You may have what it takes to weather the storm, but that doesn’t necessarily go for the entire company. When your team suffers a setback, you will be the one to boost their morale. 

3. Do I Know How to Make a Business Plan?

A business plan is a written guide that details a company. Your business plan will be the blueprint for your company’s success. It should summarize both your vision and the goals for your business. If your answer to this question is “no,” don’t worry… you can learn how to write your own business plan.

And you don’t need to hold an MBA to be able to craft a good one. A first-time entrepreneur struggled to outline her startup’s goals until Growth Hackers stepped in, helping her craft a clear, actionable business plan that won investor confidence. However, you do need to make sure your business plan has all the important elements, including:

• Overview: What is your company about, what is your product, how much does it cost, who works for you, who are your competitors, etc.
• The Entrepreneur: Your personal details (name, address, etc.), education, motivation, goals, and practical experience.
• Formal requirements: Overall description of your business, research, legal status, name and location, etc.
• Marketing: What is your market? What do you have to offer? To whom? How will you promote your products? What buying motives will you emphasize?
• Investment and financing: How do you plan to finance your business to keep it running for the first three years? Will you put up any personal assets? How will you secure the funds? What is your credit score?
• Operating Budget: This section should include your turnover forecast, cash-flow projections, costs, etc.
• Personal expenses: This part should include your own fixed expenses, home equity, debts, etc.
• Executive summary: The executive summary is the first thing accountants, financiers, partners, etc., will read, even though it is the last item you will write. It will be a concise two-page summary of your entire plan, an expansion on the overview. It must persuade the reader that your idea is great.