7 tough questions to ask yourself before starting a business

​1. Are you a self-starter?

Are you self motivated or do you need others to motivate and guide you before you take action? Do you procrastinate or manage your time well? Do you need someone to set you deadlines?

Being in charge doesn’t necessarily make it easier. It can be quite difficult to get started when you have no clear guidelines of what should be done. Successful business owners can work independently, are resourceful and hold themselves accountable. They find it easy to be productive without any external motivation or pressures.

2. Are you an inventor or a business person?

Running a business is about a whole lot more than simply having a great idea. A lot of successful start-ups are built around a unique concept or an amazing idea. However, a great product idea doesn’t make a successful business.

Developing a business requires a skill set of working with suppliers and customers, developing staff, marketing and branding products, implementing growth strategies and making sound financial decisions. “Just because you have a great product doesn't mean that customers will come knocking on your door. Entrepreneurs understand that. If you are an inventor rather than an entrepreneur, consider getting a partner with complementary skills and interests to help take your idea and make it into a successful business,” says Ferdie van Greunen, Director of Aldes Business Brokers.

3. Which managerial and leadership skills do you have?

Successful business owners know how to manage staff and consultants. They have a vision for their company’s future. They inspire and empower their staff to get the best out of them. What’s your management style? Will it help (or hinder) your ability to lead your business to success?

4. Are you offering value?

It’s all good and well for people to say: “Follow your dreams. If you love what you do, the rest will follow”. What if what you love is not what others love? Passion certainly is an important driver, but you must offer something that adds value to others. Your customers don’t care about your dream, they care about what you can offer them.

5. How is your business different?

You don’t have to come up with a completely novel idea to start your own business, but you do need to ensure that what you are offering is unique. If your business is similar to other companies, you need to be able to differentiate it from the others.

“Investigate your target market and see where there is a need. Build your business around filling that need. You don’t always have to have a brand new concept, but you have to convince customers to choose you over the competition,” van Greunen says. Investigate companies that offer similar products and services, as this will provide you with essential information on how to position your business.

6. Are you ready to change your lifestyle?

Being an entrepreneur will affect your everyday life. You are giving up financial security and investing all your time and effort into making a success. The impact will be greater if you plan to work from home. The distinction between work time and personal time often blurs.

You could experience family or other conflicts over the use of space for business or personal purposes as well as the hours you dedicate to your business. If a problem arises with the business, it's your problem, and it won't go away because you've closed the doors for the day. Be prepared for a bumpy ride to start off!

7. Do you have the financial foundation to start right now?

Starting up a business will mean an unsteady income for a while. When you’re starting a product-based company, you might only see profits after three to five years. You must have an alternative source of income to support yourself and your family financially. “Find out what start-up costs you will incur by speaking to experts who will help determine costs for your business,” van Greunen suggests. “You can get closely estimated costs from networking with other business people, which will enable you to make an informed decision on whether or not your venture is viable”, Van Greunen adds.

Asking the tough questions isn’t always easy, but could make the difference between success and failure. If one or two answers makes you wonder, good! That doesn’t mean you have to give you up your dream, it means you are aware of the areas you need to work on.

For excellent business advice and guidance, speak to Aldes Business Brokers today. They are the undisputed leaders in the business broking industry in Africa. Whether you want to buy or sell a business, they will be able to assist you with the entire process. Go to www.aldes.co.za for more information.