Opinions expressed by Business owner the contributors are theirs.
Quite often, the first questions you should ask yourself before starting a business have to do with one of two things: financing and why you are so crazy that you want to start a business anyway. Or at least that’s what I heard from so many of my friends, mentors and fellow entrepreneurs when I started out as an entrepreneur.
However, from my personal experience as a cryptocurrency entrepreneur, I believe we should start with a different set of questions:
1. Is your new business solving a problem or meeting a current need?
This question is critical to understanding whether your business will have competition or if, in some way, it is a new product or service. It may be more difficult to determine whether a new product will impact and be revolutionary. On the other hand, you won’t have to compete with established competition.
One thing to focus on when you’re still designing your idea is to make it unique, as it’s easier to get potential customers when they don’t have other companies to buy your product from. Many consumers are overwhelmed by the amount of choice they have in nearly every line of products and services.
Related: Adaptation of the product to the market: how to measure if your company is meeting a need
2. How does your product stand out from the crowd?
If the business idea you have is based on an already available product, then you need to take that product or service to the next level. You have to find a way to stand out from the competition. Clearly, they have at least some head start. While cryptocurrencies and blockchain technology haven’t been around for that long, they still have a strong customer base and name.
You may need to find better ways to do things, basically a product or service improvement. And if possible, make the product cheaper for your future customers. Either way, you’ll need to differentiate yourself from the rest of the companies. When thinking about how to market your product, it must be easily clear what a one-sentence message would say that sets you apart.
3. Who are my competitors?
Knowing your competitors is extremely important, because it allows you to learn exactly what they have to offer. Having a clear understanding of this knowledge should allow you to find ways to improve the products they already offer.
Also, knowing your competitors will allow you to better understand the market you are entering. It will also provide you with information on marketing practices and pricing. Eventually, you should be able to find their weaknesses. Ultimately, these details will help you design a better product.
Related: How to get customers to buy from you and not the competition
4. Can I do it myself?
This question is often overlooked. From personal experience, I thought I could do it all by myself. I would simply hire the people I needed in a specialized field, as and when I felt it was necessary. However, I learned pretty quickly that hiring people is okay for certain jobs, at some point it’s inevitable.
But the truth is, you are still alone no matter how many employees you may have. Starting a business takes a lot of time, work and dedication. And the last aspect is what only entrepreneurs are most likely to show. Join like-minded people who share your passion for your product and running a business. In the long run it pays off.
5. How long am I willing to keep it?
This question arises, because as we all know, not all business ventures are successful. Knowing that there is a possibility of failure means that we must prepare for that possibility. First, we should ask ourselves, “How long am I willing to stay on the project even if I am losing money?”
Next, we need to set aside sufficient financial resources to support a period that turns out to be slower than expected. We also need to know that we have enough money to rely on if the business goes bankrupt. Knowing that you have your back covered no matter what is critical to your mental health and, therefore, to your success.
Related: How Entrepreneurs Benefit From 3 Types of Bankruptcy
6. Where will I finance my business?
You are now ready to ask yourself this final question. Financing, for many companies, is important, not just to start operations, but to keep the project going until it becomes profitable. The obvious first choices are savings, family and friends.
However, your project may not attract the people closest to you or they may not be the type to invest in a new business. In this case, you may need extra funds from angelic investors. You don’t have to know anyone personally, even if it might be someone you know. In fact, it’s good to talk about your idea to as many people as possible.
Another way is to find an angel investor through an online platform. These websites, to which I have no affiliation, can serve as a meeting point for entrepreneurs and angel or early stage investors to get to know:
Answering the questions above should help you focus clearly on your business idea and how you should implement it. There are no right or wrong answers, but the answer you give should clarify how and if your business idea is likely to be profitable.
From my point of view as an entrepreneur in the field of cryptocurrencies and digital marketing, I would say that you have a better chance of success if you are passionate about your business. Passion is the driving emotion of any outstanding long-term success. Something you love to do is much easier to do than something that is just a job. If you are truly passionate about your business project, you should be able to find solutions to these very important questions.