The top 2 questions I get asked about starting your own business
Q: I'm just starting out in business, what's the number onmte thing I need to consider to ensure my big idea actually becomes financially successful?
A: Why will people want it, buy it or use it and will they keep using it... How unique is the product... Is it a product that is offering something better than what's already on offer or is it unique? The more a product is in the category of 'something better' as opposed to being meaningful unique, the tougher the competition will be in many critical areas such as customer acquisition, margins and retention.
Q: Where do you see most people go wrong when it comes to launching a startup that just isn’t making any money?
A: What is the business model, how does the business actually produce revenue? Many business models, especially those dependent on large growth and volume, require plenty of capital to get things running before they create profit, some startups underestimate what that actually looks like in financial terms and if they can't bridge that gap the idea may be good but it'll be dependent on capital... so, clarity on how the business model generates revenue and how that impacts the business as it grows are important. Starting and growing a business are very different journeys to reaching a point of stable revenue and profits, understanding what those steps look like before setting off as well as being prepared for multiple adjustments along the way will help.
Eric J. Gregory is the Author of ‘Would you like Profits with that?’ and the founder of
Gregory Business & Trades Coaching which specialises in working with SME Business Owners
and Entrepreneurs. For more information about Eric and his company
Please see http://www.gregorybusinesscoaching.com