20 Questions

20 Questions to Ask Before Starting a Business

Critical questions to evaluate your business idea, assess your readiness, and identify potential challenges before launching your venture.

1

What problem does your business solve?

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Why this works

Ensures you have a clear value proposition and that there's a genuine need for your product or service in the market.

2

Who is your target customer?

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Why this works

Helps you understand your market and develop effective marketing strategies by identifying your ideal customer profile.

3

How will you differentiate from competitors?

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Why this works

Forces you to identify your unique value proposition and competitive advantages that will help you succeed in the market.

4

What's your business model and how will you make money?

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Why this works

Clarifies your revenue streams and ensures you have a viable way to generate income from your business.

5

How much money do you need to start and operate?

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Why this works

Helps you understand your financial requirements and plan for funding needs, cash flow, and financial sustainability.

6

What are your startup costs and ongoing expenses?

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Why this works

Provides a clear picture of your financial requirements and helps you plan for both initial investment and ongoing operations.

7

How will you fund your business?

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Why this works

Forces you to think about funding sources and ensures you have a plan for securing the capital you need.

8

What skills and experience do you bring to this business?

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Why this works

Helps you assess your strengths and identify areas where you may need additional expertise or training.

9

What skills or expertise do you need to acquire?

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Why this works

Identifies knowledge gaps and helps you plan for skill development or hiring needs.

10

How will you handle the legal aspects of your business?

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Why this works

Ensures you understand legal requirements, business structure, and compliance issues that could affect your business.

11

What's your marketing strategy?

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Why this works

Forces you to think about how you'll reach customers and build awareness for your business.

12

How will you handle customer service and support?

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Why this works

Helps you plan for customer satisfaction and retention, which are crucial for long-term success.

13

What are your short-term and long-term goals?

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Why this works

Provides direction and helps you measure progress and success as your business grows.

14

How will you handle competition?

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Why this works

Forces you to think about your competitive strategy and how you'll respond to market challenges.

15

What are the biggest risks to your business?

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Why this works

Helps you identify potential threats and develop strategies to mitigate or manage them.

16

How will you handle failure or setbacks?

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Why this works

Prepares you for the challenges of entrepreneurship and helps you develop resilience and contingency plans.

17

What's your exit strategy?

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Why this works

Forces you to think about the long-term future of your business and potential exit options.

18

How will you balance work and personal life?

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Why this works

Helps you plan for the demands of entrepreneurship and maintain a healthy work-life balance.

19

What support system do you have in place?

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Why this works

Identifies the people and resources you can rely on for support, advice, and assistance.

20

Why do you want to start this business?

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Why this works

Clarifies your motivation and ensures you're starting the business for the right reasons.

Best Practices for Starting a Business

Expert tips and techniques for getting the most out of these questions.

Best Practices

Validate Your Idea Thoroughly

Research your market, talk to potential customers, and test your concept before investing significant time and money.

Plan for Financial Sustainability

Create detailed financial projections and ensure you have enough capital to sustain your business through the early stages.

Build a Strong Support Network

Surround yourself with mentors, advisors, and other entrepreneurs who can provide guidance and support.

Question Sequences

The Market Validation

1
What problem does your business solve?
2
Who is your target customer?
3
How will you differentiate from competitors?
4
What's your marketing strategy?

The Financial Planning

1
How much money do you need to start and operate?
2
What are your startup costs and ongoing expenses?
3
How will you fund your business?
4
What's your business model and how will you make money?

Common Pitfalls

Don't Skip Market Research

Avoid starting a business without thoroughly researching your market and understanding your customers' needs.

Avoid Underestimating Costs

Be realistic about your financial requirements and plan for unexpected expenses and challenges.

Don't Go It Alone

Seek advice from experienced entrepreneurs and build a support network of mentors and advisors.

Conversation Templates

The Business Planning Session

1
Step 1: Start with: "What problem does your business solve?"
2
Step 2: Follow with: "Who is your target customer?"
3
Step 3: Deepen with: "How will you differentiate from competitors?"
4
Step 4: Conclude with: "What are your biggest risks and how will you handle them?"

Further Reading

"The Lean Startup" by Eric Ries
"Business Model Generation" by Alexander Osterwalder
"The $100 Startup" by Chris Guillebeau
Small Business Administration (SBA) resources

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