Over the years, one is realizing that there are many ways and different styles to undertake. Here they are influenced by many factors such as the country, cultural, age, context and personal character for example. Yes, the vast majority of those styles could be grouped into two distinct streams:
1- Style “business plan”: this is an entrepreneur who likes to plan well all steps seeking to reduce risks to the maximum. Usually it fits a type of person more mature age and not given to explain their ideas for fear of being stolen. Search more traditional financing options and has a less digital profile.
2- Style “Lean startup”: here the profile is more open to validate their ideas with more people looking to undertake “light” to not waste much time planning. It is a kind of younger (usually) person and is very open to sharing ownership in exchange for investment. Often change the business plan for a canvas lean.
There are certain questions, you’re the style you are, you must face at some point in the process, are as follows:
1- Do I need a partner or technology partner: this is one of the most recurrent; you have to be aware that your skills are not applicable to all tasks of a company? How are you going to want to complete the weaker party? With a partner, or you you’re going to hire that part of talent necessary? If a note the next partner article.
2- Do I need funding for my project: if you need a lot of “critical mass” Start or are looking to open in other countries it is more likely that the investment is a strategic part of your business. Or otherwise the “bootstrapping” (organic growth with equity) will be your friend.
3- My client is willing to pay for my product or service: sometimes entrepreneurs have great and creative ideas but the target audience does not consider it a necessity and therefore will not pay for it. This is one of the parts of a project to validate as soon as possible.
4- How much do I find it hard to capture a customer: this called CPA, acquisition cost, it is essential to see what this figure to assess whether your policy of “pricing” is correct or if it affects the viability of the entire business.
5- Where is my “break even” the “break even point” is known as the point where you have amortized all the initial investment. Investors are very sensitive to this point where it is located.
6- Am I willing to sacrifice some years of my life for this idea: the level of commitment is very important because the first years will be complicated and you’ll have to make up with enthusiasm and patience?
7- Why buy me my my clients: or put another way, what is your competitive advantage? And your value proposition? You need a “secret sauce” to love your customers and they stay with you.
8- I have chosen the sector and appropriate business model: it may be the case that you find a profitable business now but for political, technological or environmental reasons have an uncertain future. That forecast you can save before putting all your effort in that direction.
Resolving these questions will have a little more closer to 100% validate your business model and your business profitable.
Are these appropriate for an entrepreneur questions?