Questions every start-up business owner should ask to help prevent failure

Starting a business is an exciting time that is full of promise and hope. However, the daunting statistic that 20% of start-ups fail in the first two years and just over half make it past five years*, highlights the challenging terrain business owners need to navigate.

One of the biggest challenges entrepreneurs face is working alone in the initial phase of business. You are expected to make several decisions on your own and ensure everything runs smoothly.

Sometimes, business owners feel so overwhelmed it can lead to business failure. Therefore, every business owner needs to ask themselves some important questions to avoid business failure. In this post, you’ll learn five essential questions to ask yourself if you’re a start-up business owner.

What’s my business plan?

A business plan outlines what you intend to achieve and how you plan to achieve it. It should detail your sales strategies, marketing plans, expenses, budget, and other key objectives. Not having one is one of the quickest ways to failure. Without a plan, it is impossible to measure your success, get financing, track how things are progressing, or get teams on board to help you realise your vision.

Who is my target market?

One of the most significant challenges businesses face, is identifying their target market. Business owners end up wasting resources targeting everyone or no one at all.

Defining your ideal customer can help narrow your focus and increase your chances of success. Find out your customer demographics such as age, gender, income, religion, and interests. Once you know who your customer is, you can provide your product or service catered to their specific needs.

What is the competition doing?

Knowing your competition is an absolute must. It helps you stay ahead of the curve by knowing what to do or what not to do. Analysing what works for them and what doesn’t is an important way to stay competitive and in business.

Knowing the competition will also help you identify gaps in the market. It provides the opportunity to fill those gaps with your service or product.

What resources do I need?

When you’re starting, you initially want to take on everything to ensure that the business survives. Resources such as capital, staff, location, and suppliers require a considerable investment.

Understand the resources that you need to ensure success. Consider investing in essential resources such as skilled staff, great office location for visibility or the right supplier for growth. Investing in essential resources will cost money initially, but it does pay off in the long run.

How will I cope with failure?

Business success isn’t always linear; unexpected bumps and failures are bound to happen. The key is how you pick yourself up and move forward after a failure.

Having a mindset that enables you to roll with the punches will help you get through tough times and ensure you remain focused on your vision. Build a strong community, engage in self-care, critical reflection, and develop a resilient mindset.

*Statistics source: Exploding Topics