Last month on our asset-based lending blog, The Commercial Finance Group offered up six important questions entrepreneurs can ask themselves before starting a business. These questions covered topics concerning why you want to start a business, if you are ready to put in the time, who your mentor will be, who your team will be, what your end goal is, and of course, how you will secure working capital to fund it.
Running a business is a lot of work, but it is also extremely rewarding. To lessen the stress and reap the rewards, it is important to have all of your bases covered, so to speak, before venturing into this new journey. Today, we’re going to be suggesting six more questions to ask yourself before starting your own small business. Keep reading to get some ideas. If you have already started on your business ownership journey and need a source of working capital, be sure to get in touch with The Commercial Finance Group today to discuss your options.
#1: Am I Meeting A Need Or Solving A Problem?
New businesses must solve some sort of problem or fill a need to be successful. Your business needs to have value for a customer to be sustainable. Some businesses find solutions to broad problems, while others fill a need in a niche market. Some businesses take an existing solution to a problem and make it better or more modern. What need will your business meet?
#2: Do I Have A Plan For Reaching My Goals?
We could rephrase this problem as, “Do I have a goal?” And if the goal is “to start a business,” you need to go back to the drawing board. Owning a business for the sake of owning a business can be problematic. Instead, think of feasible, tangible goals for the first month, year, five years, and 10 years of your business. Where do you want to be, what type of small business funding will you need to get there, and what steps do you need to take now to make that happen?
#3: Does Owning a Business Fit My Lifestyle?
Not everyone’s lifestyle lines up with that of a business owner. We know that owning a business takes time and money, but it also takes the ability to make tough decisions, to let people down, and to handle inordinate amounts of stress. If you’re not a natural decision maker or you like working for other people, then starting a business might not be in your cards. And that’s just fine!
#4: What Do I Have To Sacrifice To Make This Happen?
Starting and running your own business takes a lot of sacrifice. As we mentioned above, two of those sacrifices involve time and money. But you also might sacrifice time spent with your kids, spouse, or parents. You might sacrifice a steady income. You might have to sacrifice a senior position at your current job to start from scratch. You might have to move yourself and your family to another part of the country. What will you need to sacrifice to make your business a success and are you willing to do that? Will you look back in 50 years and regret any of the decisions you made?
#5: Who Will My Competitors Be And How Can I Be Better?
Every business has competitors. Even seemingly innovative businesses either already have competitors or will soon. Before starting your business, identify your competitors and decide what you will have to do to be better than them. And remember, better doesn’t necessarily mean bigger.
When you come into a market that already has some “big names” that are thriving, it can be intimidating. They have a larger platform, more funding, and a wider reach than you do. However, if you can convince people that your product or service is better (and then actually deliver), you can find success in that market.
#6: How Will I Compensate For Weaknesses?
Answering this question might involve some uncomfortable introspection. We all have weaknesses and the sooner you can recognize those, the sooner you can compensate for them. If you are extremely disorganized, you might need to hire a business accountant to handle all of the paperwork during tax season. If you are a terrible salesperson, hire a sales team. If you have bad credit, find ways to fund your business other than traditional small business loans — our asset-based lending and factoring services can help with this.
We Offer Funding And Loans For Small Business
When starting your own business, funding is vital. We want you to know that you have multiple funding options, from small business loans to asset-based lending and everything in between. The Commercial Finance Group is proud to offer unique small business lending options for entrepreneurs who are on their way to bankability. When you need more options for commercial loans to increase your business cash flow, we can help. Get in touch today to learn more about your business financing options!
