Key questions you need to answer before starting your business
If you’re thinking of starting a business, there are some key questions you need to be able to answer effectively before you really get going. If you can’t, you could be wasting time, money, or both. The failure rate for new small businesses is high.
Q1: Is there a market need for your product or service?
This is a no-brainer. There has to be a market need for your product or service. If there isn’t already, it will be hard for you to create one.
Q2: How much competition do you have?
The less competition you have, the better. The size of your competitors is also important. If you have large competitors, it will often be harder for you to compete effectively as a small business.
Q3: How will you differentiate yourself from your competitors?
This is important and it’s called your competitive advantage. Why will people choose your product or service over your competitors? For example, price, quality, service, location or some other reason?
Q4: What is your business model?
In other words, how will your business operate and generate the revenue you need to be viable?
Q5: How will you ensure your cash flow until your business gets going?
Running out of funds to buy stock or to pay your operating expenses until you generate enough sales is a common small business problem.
How we can help
If you can answer all those questions effectively and you want to take the plunge to start your own business, we can help you get your finances sorted from day one.
At Scorpion Bookkeeping, we can help you to implement Xero bookkeeping software to help save you time and hassle. We are a Xero-certified partner.
We also provide bookkeeping support services to a diverse range of clients in Victoria, South Australia and New South Wales.
Contact us today for a free, no-obligation consultation to find out how we can help your new small business!