Opinions expressed by Entrepreneur the collaborators are their own.
Most of the time, the first questions you need to ask yourself before starting a business are related to one of two things: financing and why you are crazy enough to start a business. Or at least that’s what I heard from many of my friends, tutors, and entrepreneurial friends when I started as a business owner.
However, in my personal experience as a crypto-entrepreneur, I think we should start with a different set of questions:
1. Does your new business solve a problem or respond to a current need?
This is a key question in understanding whether your business will compete or, in some way, is a new product or service. It may be more difficult for you to determine whether a new product will have an impact and be a pioneer. On the other hand, you don’t have to measure yourself against established competition.
The only thing you need to focus on when you are designing your idea is to focus on the potential customers who are more likely to win when they have no other business to buy your product from. Many consumers are overwhelmed by the number of options available on every product and service line.
Related: Product Market Adjustment: How to measure whether your business is meeting a need
2. How does your product stand out from the crowd?
If your business idea is based on a product that is already available, you need to take that product or service to the next level. You need to find a way to differentiate yourself from the competition. Clearly, they have at least some initial advantage. Although cryptography and blockchain technology have not been around for so long, they still have a strong customer base and a well-established name.
You may need to find better ways to do things; basically an improvement of the product or service. And if possible, get the product right for your prospective customers. However, you will need to differentiate yourself from other companies. When thinking about how to market your product, you need to be clear about what a one-sentence message would tell you.
3. Who are my competitors?
Getting to know your competitors is important, as it allows them to learn exactly what they offer. Having this knowledge clear should allow you to find ways to improve the products you already offer.
In addition, getting to know your competitors will help you 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. After all, these details will help you design a better product.
Related: How to persuade customers to buy from you and not compete
4. Can I do it alone?
This question is often overlooked. From personal experience, I thought I could do it on my own. I would simply hire the people I need in a specialized area when I felt needed. However, I learned pretty quickly that hiring people is okay for certain jobs, which is inevitable at some point.
But the truth is, you’re still alone, no matter how many employees you may have. Creating a business requires a lot of time, work and dedication. And the last aspect is what only entrepreneurs show. Get together with like-minded people who share your passion for running a product and running a business. In the long run, it pays off.
5. How long am I ready to stay?
This question arises, as we all know, because not all business intentions are successful. Knowing that there is a chance of failure means that we need to be prepared for that opportunity. First of all, we should ask ourselves, “How long will I be willing to spend money on a project even if I’m losing money?”
Then we need to put in enough money to deal with a period that is proving to be slower than expected. If business fails, we need to know that we have enough money. Knowing that you have your back covered is essential to your mental health and therefore success.
Related: How Entrepreneurs Benefit From 3 Types of Failures
6. Where will I finance my business?
Now you are ready to ask yourself this last question. Financing is important for many businesses – not just to start operations, but to sustain the project until it is profitable. The first obvious options are savings, family, and friends.
However, your project may not appeal to people close to you, or you may not be able to invest in a new business. In this case, you may need additional funds from angel investors. You don’t have to meet anyone in person, even though they may be someone you know. In fact, it’s a good idea to talk to as many people as possible about your idea.
Another way is to find an angel investor through an online platform. These non-affiliated websites can act as a meeting place for entrepreneurs and angel or early stage investors:
Answering the above questions will help you to see your business idea clearly and how to implement it. There is no right or wrong answer, but the answer you give should clarify how and why your business idea will be profitable.
From my point of view as an entrepreneur in the field of crypto and digital marketing, I would say that you have a much better chance of success if you are passionate about your business. Passion is the thrill of outstanding long-term success. Doing something you enjoy is much easier than doing a job. If you are really passionate about your entrepreneurial project, you should be able to find solutions to these important questions.