Before you start any business, you, as a budding entrepreneur must, absolutely must get answers to these questions:
Is there a market for your product or service? Will people pay for it? Will they buy it again?
Is there an economic way to reach your prospects and communicate your sales message to them? I.e. what is the cost of customer acquisition/ conversion/ sale?
Does your product or service have a USP or UVP ( unique sales proposition / unique value proposition) or are you a me-too commodity product destined to compete on price alone?
How are you going to finance the start-up, and how are you going to finance the growth? Have you really looked at all the costs?
What is your competition, and what are they going to do when you show up on the scene? How will you compete once they react?
Do you understand the dynamics of the business, and which factors are important for success? Out of the hundreds of different things that go on in a business, there are usually only 4 or 5 that determine success or failure. Do you know which those are, and how they work?
Have you got a really good idea of Cash flow, cash flow and more cash flow? What does it look like +/- one standard deviation from your expectations?
How are you going to execute your plan? Staff? Employees? Independent contractors? How will you control all of this?
What happens when something doesn’t go according to plan? Do you have a plan B and plan C?
Reality check: what are you missing? What big obstacle ( the 800lb gorilla in the room) is there? Every entrepreneur has a blind spot. What’s yours? What have you missed in this exercise to start a business?
Reality check: what do other people, people who have some experience in business, like your CPA and attorney say about this start-up idea? What do other experienced business people who have been through the start-up wars say?
Reality check: Are you really ready for this, or are you looking at starting a business as a fanciful adventure? Do you have the physical, emotional, and spiritual strength to do this? Got enough grit? How about your family? Are they ready for this?