5 Vital Questions To Consider in Starting Up a Business

People say having a business is your gateway to financial freedom – yes if it flourishes. Otherwise, you need to reassess everything. Having a business is not a walk in the park. It requires knowledge, passion, and a lot of patience. Most often than not, lack of knowledge is the reason why businesses don’t develop.

Business center vivere hotel

Gather family and friends about your desires. Always surround yourself with supportive people to stay on track. (Taken at the Vivere Hotel Conference room)

Starters neither have the support nor the means to do it. However, you can save yourself from too much work and disappointments by clearly mapping out the things you want to achieve. So, if you are seriously planning a business, you must be ready to answer these questions. Have your pen and paper ready, as this will serve as your guide to starting a business.

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Create a business plan with your objectives and mission in it. Photo credit:businessnewsdaily.com

5. Do I have enough funds to support my endeavors?

Statistics show that 8 out of 10 establishments close within the first three years. Most of the reason is bankruptcy. Thus, money is important in setting up a business. Just because you heard business could give you financial freedom, doesn’t mean you can set up straight away and plan for your next family out of the country trip. No, it doesn’t work that way. In business, you have to spend first before you could earn. This a necessary question to ask yourself, especially, if you just loaned the money. Bear in mind the moment you start operating a business, the return on investment doesn’t happen overnight. You neither be earning nor earn as much as you want during the first few months, so put all things into consideration.

Although there are some financial aids we can get, it is a must that you have enough so you won’t be in a predicament you will regret eventually.

4. What kind of business should I start?

Once you’ve answered the question no.5, think of what business you are going to start. It must be unique and catchy. Just to give you an idea, based on the MSME statistics, there are 946,988 establishments in the Philippines. Of these, 99.6% (942,925) are micro, small, and medium enterprises (MSMEs) and the remaining 0.4% (4,063) are large enterprises. See the below pie chart:

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Photo credit dti.gov.ph

Once you’ve decided the type of business, think about your legal and tax obligations. It depends on which type of business structure you’re in. The 4 most common forms of businesses are (1) Sole Trader (2) Partnership (3) Trust and (4) Company. It is a must to know the difference amongst these four to know if you are required to obtain special licenses and/or other business requirements.

Whilst it is important to be unique, following your passion is significantly important. Weigh your options by closely understanding yourself and the people around you.

There are a lot of options. Think of something you will enjoy doing even if you are already in the retirement age.

3. Do I have enough time for this business?

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Time is of the essence. Business isn’t done overnight nor implemented right away. So think things thoroughly for a successful outcome. If you have already outlined everything, start as soon as possible. If you still have doubts, try revisiting your business plans and goals.

2. Am I ready for change?

This question is vital because business, most of the time, is about maintaining it. Significantly, Nokia’s CEO said that they “didn’t do anything wrong but somehow lost.” They were one of the pillars in the technology industry, sadly, they weren’t able to cope with change. As we become diverse, the more we need to be resilient and agile.

Change is inevitable. Business could produce mayhem, so adapt to new things accordingly.

1. Why do I want to start a business?

Before anything else, you must ask yourself this – why do you want to start a business in the first place? Is it because you are passionate about it or just because? What are your goals? Is this for long term or short term? Whatever your answers may be, you must learn and love what you’re doing, so you can stay on top of everything. Do what you love so you won’t get tired from nourishing it.

I still believe to what Six Sigma entails: do not blame the people but the process. Therefore, answer these 5 simple yet vital questions to have a smooth and stable business.

Do you have anything to add? What tip would you like to share in putting up a business?

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