Twenty Questions About Your Great Business Idea – Having an idea and having one that will actually succeed are two very different things. That is why it is very important for would-be entrepreneurs to evaluate concept and take a quick look at a few financing options.
The first step toward success is asking yourself a rigorous set of questions about your business idea. Below is a list of 20 questions about your business. Don’t panic if you don’t know all the answers just yet. You’re just getting started. However, these questions do provide a great framework for beginning to think realistically about turning your brainstorm into a functioning enterprise.
1. What type of business are you starting?
2. What is its purpose?
3. Who will it serve?
4. What is your product or service?
5. How does your product or service fulfill customers’ needs?
6. Can you articulate one sentence that describes what your business does, who it serves, and how it does that?
7. What are three unique benefits of your product or service?
8. Why are you going into business? (Remember the lesson we learned above!)
9. How did you come up with your business idea?
10. Who is your competition?
11. How is your business different from your competition?
12. What are the top three customer objections to buying your product or service immediately?
13. How does your pricing compare to the competition?
14. When will your business be up and running?
15. Is this product or service used in conjunction with other products?
16. Will you make special offers?
17. What plans do your have for advertising and promotions?
18. What data sheets, brochures, diagrams, sketches, photographs, related press releases, or other documentation about your product or service do you currently have?
19. How will you finance company growth?
20. Do you have (or need) the management team needed to achieve your goals?
Remember: You don’t need to have all of the answers right now. The important thing is to begin to think strategically about your business idea. Asking the right questions will serve as a launching pad for your research, and ultimately the writing of your business plan.
In answering the 20 questions, get out your journal and write down answers. Keep refining your answers until they’re concise and clear — no more than three sentences each. Later on, when you’re doing research and drafting a business plan — maybe even at times when you feel overwhelmed — you’ll be able to review this document. It’ll provide a touchstone that will be extremely useful on your way to become a successful entrepreneur.