To save you hunting the internet for answers about your startup, we’ve provided you with the answers to the ten most common startup questions…
1. Do people need what I’m selling?
You must do your market research. Some entrepreneurs dream up solutions to problems that do not really exist or rather only exist because of a personal need or experience. Doing your research will protect you from making mistakes. Then make sure your pricing is fair and reasonable.
2. How much money will I need?
This may be the most-asked question of all. There’s no exact answer, as each business is unique. Some companies will need thousands to get off the ground, while others can turn a profit with little investment. The best way to overcome this worry is to set up a forecast in Futrli.
3. What do I need to know about the financial side of things?
First of all, you need to have a good understanding of the three financial statements you’ll be using throughout your career. These are:
- Balance sheet, showing you the financial state of your business at a given time
- Profit & loss, which depicts whether or not you’ve turned a profit at a given time
- Cash flow statement, giving you a break down of your cash position at a given time
Keeping these three crucial documents up to date will drastically reduce risk. 3-way forecasting combines all three to show the most accurate financial projection you can get.
4. Should I write my own business plan?
Definitely! That’s our answer because only you know the exact direction you want your business to take. A great business plan can turn an idea into a successful business. It’ll give you direction, but remember to adapt it as you learn more about your customer base.
5. Where can I get investment?
Some entrepreneurs get investment from their savings, friends or families. From seed funding to Angel investors, crowdfunding to cash advances, make sure you’ve done your research and come up with a plan to suit your own needs. It won’t always be easy, but it almost always pays off.
6. What skills do I need?
While this is a broad question, it’s an important one. It’s good to be charismatic, but you need to be able to follow through with any commitments and promises you make. Flexibility, adaptability, nerve and tact are all key traits to have. If you can pick yourself up and dust yourself off then you’ll be ok.
7. Am I measuring the appropriate metrics?
If you can identify the core KPIs in your company – and measure them regularly – then you’re going to feel in control of your business. Choose personal and specific goals for your business. The ‘one size fits all’ approach simply isn’t appropriate for any business because each one is different.
8. Do I have the right people?
As your business develops and grows, you’re going to start attracting the right people. But, as a startup, your staffing may be more circumstantial. It’s a big step to make your first hire, so make sure you’re completely ready to be relied upon and have all of the legal paperwork completed.
9. Do I have the right customers?
When you made/make your business plan, you’ll have researched the market and industry, which shows you which kind of people are going to want or need your product or services. Target them with digital advertising, using Google and social media. It’s cheap and you can track your results.
10. What if I fail?
We really hope you don’t, but if things do go wrong try not to get too disheartened. Failing is nothing to be ashamed of, rather you should be proud you’ve set about your venture at all. And if you think about the likes of James Dyson, Walt Disney, Thomas Edison and Vera Wang all fell before they rose.