Questions to Ask Before Starting a Business
Critical questions every entrepreneur should answer before launching a venture to increase chances of success.
Starting a business is a significant commitment of time, energy, and resources. Before taking the leap, it's essential to ask yourself hard questions and honestly assess your readiness. Here are the critical questions every entrepreneur should answer before starting a business.
Problem and Market Questions
What specific problem am I solving? Be crystal clear about the problem you're addressing. Vague problems lead to vague solutions that don't resonate with customers.
Who has this problem, and how significant is it to them? Understand your target customers deeply. Is this a "nice to have" or a "must have" problem? How much pain does it cause?
Is there a viable market for my solution? Not every problem needs a business solution. Assess whether enough people have this problem and would pay for a solution.
Who else is solving this problem, and how? Understand your competition. What are they doing well? Where are the gaps? How is your approach different?
Personal Readiness Questions
Am I passionate about this problem and solution? Entrepreneurship requires sustained effort and resilience. Genuine passion helps you persevere through challenges.
Do I have the necessary skills, or can I acquire them? Be honest about your capabilities. What skills do you have? What skills do you need? How will you fill the gaps?
Am I ready for the lifestyle changes? Starting a business often means working long hours, financial uncertainty, and significant stress. Are you prepared for this?
Do I have a support system? Entrepreneurship can be isolating. Do you have family, friends, mentors, or advisors who will support you through the journey?
What's my financial runway? How long can you operate without income? What are your financial obligations? How will you cover personal expenses?
Business Model Questions
How will I make money? Be specific about your revenue model. Who pays? How much? How often? What's the transaction flow?
What are my costs? Understand all costs: product development, operations, marketing, staffing, overhead. Include both fixed and variable costs.
When will I break even? Create realistic financial projections. How long until revenues cover costs? How much capital do you need to get there?
How will I acquire customers? Customer acquisition is often harder and more expensive than anticipated. What channels will you use? What's the cost per customer?
How will I retain customers? Acquiring customers is only half the battle. How will you keep them? What's your retention strategy?
Execution Questions
What's my minimum viable product (MVP)? What's the simplest version of your solution that delivers value? Start small and iterate.
What resources do I need? What's required to launch and operate? Money, equipment, people, partnerships, licenses, etc.
What are my biggest risks? Identify potential failure points. What could go wrong? How will you mitigate these risks?
What are my key milestones? Set clear goals for 3, 6, 12, and 24 months. How will you measure progress?
Do I have a plan for when things go wrong? Things will go wrong. What's your contingency plan? How will you pivot if needed?
Impact and Values Questions
Does this align with my values? Will you be proud of this business? Does it contribute to something meaningful to you?
What impact do I want to create? Beyond profit, what positive change do you want to bring? For customers? For your community? For society?
How will I measure success beyond financial metrics? Money is important, but it's not the only measure of success. What else matters?
Commitment Questions
Am I willing to commit for the long term? Building a business takes time. Are you prepared for a multi-year commitment?
What's my exit strategy? While thinking about exit early might seem counterintuitive, understanding your end goals helps guide decisions. Do you want to build for the long term, aim for acquisition, or create something that can run without you?
What's the worst-case scenario, and can I accept it? Entrepreneurship involves risk. What's the worst that could happen? Can you live with that outcome?
Next Steps
If you've answered these questions honestly and you're still excited about starting your business, you're likely in a good position to move forward. If many answers are uncertain or concerning, consider:
- Conducting more market research
- Gaining relevant experience or skills first
- Starting smaller (side project, pilot, etc.)
- Finding a co-founder or advisor
- Building savings and resources first
- Waiting for better timing
Remember
There's no perfect time to start a business, and you'll never have all the answers. However, thoughtful preparation increases your chances of success. These questions aren't meant to discourage you—they're meant to help you start with clarity, realistic expectations, and a stronger foundation.
The best entrepreneurs are those who combine passion with preparation, vision with pragmatism, and ambition with careful planning. Take the time to ask these questions now, and you'll make better decisions throughout your entrepreneurial journey.