Salvador Chavarria Discusses Questions You Should Ask Yourself Before Starting a Business
Starting a business is no easy feat. It takes time and dedication to build something that others can support. According to Austin, Texas entrepreneur Salvador Chavarria, making sure you’re ready for this kind of commitment is an important question to ask yourself before starting any company or new project.
What kind of business am I starting? Will this business support me, or do I plan to work other jobs as well? How much will it cost? Can I afford those costs if something different were to happen and I need to start over? Do I have a great startup team that’s ready to work with me and my ideas every day? Am I passionate about what I’m doing, and do people seem interested in what we’re building — does their feedback help you grow and better the idea.
Building a business takes time, dedication, and money. Make sure you can answer all these questions before diving headlong into any project. Here are some questions to consider before taking the plunge into entrepreneurship.
Who are My Primary Competitors in the Industry?
According to Salvador Chavarria, it’s important to know your primary competitors to understand better what will set you apart. Investigate the competition and learn what their strengths are, as well as how you can do better. Also, check out your startup’s weak spots. You want to be able to address these issues before you release any products or services.
What is My Unique Selling Proposition?
One of the most important things about any product or service is differentiating itself from the competition. What does your business offer that your competitors don’t? Why should someone choose you instead?
How Is the Market Responding to This Industry?
According to Salvador Chavarria, the market can give you great insight into the success of your business. Watch for trends and patterns in what people purchase, as well as how they respond to changes. Use this information to understand your
clientele better and what works best for them.
What Do I Need to Do to be Successful?
Before starting any business, ask yourself if you have what it takes to be successful. You should know your weaknesses, according to Salvador Chavarria, and work on those before introducing a new product or service line. Make sure everyone on your team knows their role and can do their job well — especially management roles like project managers, human resource managers, and finance managers.
How Is My Solution Different From My Competitors?
If you’re going to succeed in a highly competitive industry, you need to be able to make your product or service stand out from the rest. What differentiates you from your competitors? Is it quality? Price point? Service options? Branding efforts?
How Long Will It Take Me to Profit?
It’s important that you can see the light at the end of the tunnel when starting any business — especially if money is tight and you have bills piling up already. Look at how much startup capital you’ll need and what timeframe will allow for a return on this investment so that one day soon, every penny spent will result in a profit made.
Who Is My Ideal Customer?
The more you know about your ideal customer, the better job you can find and reach them with your product or service. Find out how they use your competitors’ products and what they like and dislike about them to better understand their wants and needs.
What is My Current Financial Condition?
Always look at your finances before starting any new business venture. That way, if something goes wrong with the business, you’ve got an idea of where you stand (financially) so that no matter what happens, you’re not left completely destitute. Make sure there’s money set aside for emergencies or other issues that might arise.
How Will I Market My Business?
Marketing is a huge part of starting any new business. Without marketing, you can’t expect to have much success. So before leaping, make sure you know all your options when it comes to marketing and how each will help or hinder your goals for the business.
How Will I Fund My Business?
Yes, you’ll need startup capital. But how are you going to get it? Are there loans or equity sources available that don’t require repayment? What are your cash flow needs, and how will they be funded every step of the way through your business lifecycle?
What Should I Expect as My Business Grows?
It’s important to know what the future holds not only for yourself but also for your business. Make sure you have a realistic sense of what can happen if everything goes swimmingly well — as well as what might come about if things go south. Anything could happen during the startup phase, so make sure you’re prepared by asking yourself these questions first.
Which Resources Will Help Me the Most During Startup Phase?
During the startup phase, you need all the resources at your fingertips that you can get. So ask yourself if this is a strong suit for you and what resources you’ll need to make sure things go smoothly. Speak with other business owners to see who might be able to provide guidance when it comes time to market, grow, or fail — as well as those preferred lending sources people tend to turn to during times of financial trouble.
How Will I Define Success After the First Year?
Setting goals is an important part of any business. You need to know when you’ve succeeded or failed because it’s the only way you’ll know what to do next. So before starting, make sure you have specific goals in mind (profit targets) and how you’ll measure your success once your business begins operation.
Final Thoughts
Starting a business is no easy venture. Many considerations must be made before you can even begin. Make sure to ask yourself all the important questions to know exactly what it’ll take to succeed and how long it might take once your business is up and running at full capacity. If beginning any new task, consider whether or not you have the resources available to complete it successfully — as well as if this level of success aligns with your ultimate goal for starting said task in the first place. Ask yourself these questions before starting a business.