7 questions to ask before you start a business

Taking the plunge and deciding to start your own business is a courageous step, bringing new opportunities and challenges into your working life. If you are playing around with the idea of starting a business, we’ve got 7 questions you need to ask yourself before making the commitment.  

1. Why do you want to start your own business?

This is probably one of the most important questions you need to ask when thinking about starting up your own business. What is the drive behind your new business concept? Is it to fulfil the dream of being your own boss and having a more flexible work-life balance? Or maybe it’s being able to wake up and do something you love every day?  

Whatever the reason is, the journey of starting your own business is exciting. Sure, it will have its ups and downs, but remembering the reason why you got into business in the first place can help you to stay inspired and on track.  

Finding your ‘why’ and using this as a motivation to make decisions about your business will help to create a business that is founded with passion and a drive to succeed.  

2. What resources do you need to start your business?

Every business is different, so the resources and outlay required to get started will be unique to your type of business.  

Here are some things to think about when in the planning stages: 

  • What kind of business assets do you need? Do you need extra tools, furniture, specialised equipment?
  • Where will you operate your business from? Do you need to rent a space? Will your business be run from home or mobile and on the road?
  • Do you need to set up a website? If you are setting up an online store will you need e-commerce programs and extra security?
  • Will you need to set up devices like EFTPOS machines to run your business?
  • Do you need to hire staff?

3. What business insurances* do you need to consider?

Now that you have a clear idea of the type of assets and things you need to get your business going, it’s time to look at how you are going to protect your business with business insurance 

There are many different types of business insurance products availablehowever not all of them are going to be suitable for the kind of risks your business may face. When shopping around for your business insurance it is helpful to keep these things in mind: 

  • Understand the potential risks that may impact your business and only get the appropriate kind of cover you need. 
  • Ensure that all your business activities are covered.  
  • Make sure you have enough cover in place with the right limits to suit your business needs. 
  • Understand what is included in and excluded from your policy 

4. Who are your potential customers?

Having a solid understanding of who youpotential customers are involves a bit of homework, but it will pay off in the long run. Take the time to know your customers demographics, buying motivators, etc. 

A helpful exercise is to gather all this valuable information together and create fictional customer profiles. These profiles can help your brand to connect with the target audience you are trying to reach with your business.  

Through some clever marketing and being able to relate to your customers, your business will be able to provide the products or services they seek, helping you stand out from the competition.  

5. Who are your competitors? 

While knowing who your target audience is vital, equally important is being aware of who your competition is. Part of the initial stages of setting up a business is doing a SWOT (Strength, Weaknesses, Opportunities and Threats) analysis of the market environment your business is about to enter.  

 If there are other businesses which are similar to yours in the marketplace, make sure your business has a point of difference. Identifying any niches within the market that your business can hone in on, gives you an advantage of attracting new customers after the specific services or products you provide.  

6. How will you market your business?

One of the keys to creating a successful business is having a marketing strategy in place. You want to let your potential customer know that you are open and ready for business! Something that you need to decide is whether you will look after your own marketing or outsource it to a marketing specialist to manage. 

If you decide to look after your own marketing, there are plenty of resources available to help inspire and reach out to your target audiences, from free tools to online master classes. 

Some helpful sites and resources worth checking out include: 

7. What do you need to do to get your business going?

Now that you have all your ideas and research underwayit’s time to start focusing on the legalities of getting your business into gear. Staying organised from the start is a good habit to get into and will make your life a whole lot easier when it comes to the administration side of things.  

Some of the next action items you may need to address include: 

  • Registering your business name 
  • Registering for an ABN 
  • Setting up a business bank account 
  • Talking to an accountant about the structure of your business 
  • Getting your taxes in order and understanding what you can and cannot claim 
  • Arranging for a business logo and business cards 
  • Ensuring you have your business insurance arranged 

Are you ready to start?

There may be plenty of things to think about in the early stages of setting your business, but one thing you don’t need to stress about is your business insurance. 

At BizCover we understand what it’s like to start out as a small business. We believe in providing a hassle-free experience, so let us do the shopping around for you.  

Receive multiple business insurance quotes delivered straight to your inbox from some of Australia’s leading insurers. To find out more head to our website or give us a call today.  

*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.

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