Five Questions I Ask Every New Business Owner

A lot of people walk into The Biz Foundry with a logo, a name and an Instagram handle already picked out. Those are the fun parts. They are also the parts that matter least in the first few months.

When I sit down with someone new, I almost always start with the same five questions. They are simple, and they are hard to answer well. If you are thinking about starting something, try answering them before you spend another dollar.

1. Who, exactly, is your customer?

"Everybody" is not an answer. I want a person: how old they are, where they live, what they do on a Saturday and what problem keeps them up at night. The clearer that picture is, the easier every other decision becomes, from pricing to where you advertise.

2. What problem are you solving for them?

People don't buy products. They buy relief from a problem or a step toward something they want. If you can't say the problem in one sentence, your customer won't be able to either.

3. How will they find you?

A great business nobody knows about is a hobby. Is it word of mouth, a booth at a market, search, social or a referral partner? Pick one or two channels and get good at them before you chase every option.

4. What does it cost you to make one sale?

This is where a lot of plans fall apart. Add up materials, your time, fees, shipping and the marketing it took to get that customer. Then look at your price. If the math only works when you never pay yourself, we need to talk about it now, not a year from now.

5. What does success look like in twelve months?

A side income? Quitting your job? Your first employee? There's no wrong answer, but there is a big difference between them, and the plan for each looks different.

Start with a conversation

If you can answer all five with confidence, you are ahead of most people I meet. If you can't, that is exactly what coaching is for. Coaching at The Biz Foundry is free for anyone in the Upper Cumberland, and the first session is just a conversation. Bring your idea and we'll work through these together.