what questions to ask for a business plan

135 Business Plan Questions

Embarking on the business journey of your dreams begins with a robust business plan. This plan is not just a document—it’s the roadmap to your success, painting a clear picture of where you’re headed and how you plan to get there.

Whether you’re a seasoned entrepreneur or a hopeful startup pioneer, the questions I’ve compiled are designed as your compass, guiding you through the intricate landscape of business strategy.

From your executive summary to the details of your financial projections, each question serves to dig deep into the essence of your vision, solidifying your plan with precision and care.

Table of Contents

Executive Summary

• What is the core mission of your business?
• How would you describe your company’s business model in simple terms?
• What unique problem does your business solve for its customers?
• What are the short-term and long-term goals of the company?
• Who are the intended clients or customers of your business?
• What is the vision statement for your business?
• Who are the founders and key team members, and what are their roles?
• How does your company set itself apart from the competition?
• What are the main achievements or milestones of your business to date?
• What key opportunities do you see in the market?
• How much funding are you seeking, and how will it be used?
• What are the main products or services your company offers?
• What is the current stage of your business (concept, start-up, growth)?
• How do you see your company evolving in the next five years?
• Can you summarize the financial outlook and projections for your company?

Company Description Considerations

• What is the legal structure of your business (e.g., sole proprietorship, LLC, corporation)?
• How did the idea for the business originate, and how has it been developed?
• Who are the target customers, and why will they choose your business?
• What are the key elements of your business’s operations?
• What are the specific advantages of your location or facilities, if any?
• How does your company’s history and background set it up for success?
• What business sector or industry does your company fall under?
• How does your company contribute to the economy and community?
• What partnerships or collaborations are essential to your business?
• What are the core values and culture of your company?
• How does your business respond to changes in the market?
• What relevant certifications, licenses, or permits does your business hold?
• What are the main risks and challenges your business faces?
• What role does sustainability play in your company’s operations?
• How does diversity and inclusion manifest in your company?

Market Analysis

• Who is your primary target market, and what are their defining characteristics?
• How large is the target market, and what is its projected growth?
• What are the trends and themes currently shaping your target market?
• Who are your top competitors, and what are their strengths and weaknesses?
• What is your market share, or what market share do you project to capture?
• How do your target customers make their purchasing decisions?
• What factors influence the demand for your products or services?
• What barriers to entry exist in your market, and how can they be overcome?
• How does pricing play a role in your market position?
• What is your value proposition to customers in comparison to competitors?
• How might technology impact your market in the future?
• What are the legal or regulatory factors affecting your market?
• How have external factors like the economy affected your market historically?
• How does geography affect your market and business model?
• What are the risks associated with your target market?

Organization and Management Structure

• Who comprises the leadership team, and what are their backgrounds?
• What is the organizational structure of your business?
• How will your management team help achieve the business’s goals?
• What gaps exist in your current team, and how do you plan to fill them?
• What are the roles and responsibilities of your management team members?
• How does the management structure align with your business strategy?
• How does your team make decisions and communicate internally?
• What systems are in place for performance management and accountability?
• What is your plan for recruiting and retaining skilled employees?
• How do you approach leadership development and training?
• How does the current team’s expertise align with the business goals?
• What are the board of directors’ roles, if applicable?
• How do you plan to create a productive company culture?
• What external advisors or consultants does the business use, and why?
• How have you planned for succession in key management roles?

Service or Product Line Inquiry

• What are the main products or services your business offers?
• How do these products or services fulfill customer needs?
• What is unique about your products or services?
• How does product/service quality compare to competitors?
• What is the lifecycle of your products or services?
• How is your product or service produced or delivered?
• Are there any patents, copyrights, or trademarks involved?
• What research and development activities are you pursuing?
• How do you plan to expand your product or service range?
• What customer feedback have you received about your product or service?
• How does your product or service adapt to changes in the market?
• What is the pricing strategy for your products or services?
• How does your product or service contribute to your brand image?
• What are the future plans for developing your product or service?
• How do warranty or guarantee terms play into your offering?

Marketing and Sales Strategies

• What marketing channels will you use to reach your target audience?
• How will you position your company within the market?
• What promotional strategies will you utilize to attract customers?
• What is your sales forecast for the first year and beyond?
• How will you set sales targets and measure success?
• What sales tactics will you employ to enhance customer acquisition?
• How will your marketing and sales strategies evolve as the business grows?
• What is your approach to online and social media marketing?
• What customer relationship management processes will you put in place?
• How do you plan to establish your brand identity?
• What partnerships or sponsorships will you leverage to enhance marketing?
• What are your strategies for repeat business and customer loyalty?
• What is your process for tracking marketing ROI?
• How do customer service and support fit into your sales strategy?
• How does your marketing strategy cater to different customer segments?

Funding Request Fundamentals

• How much total funding is required to reach your business objectives?
• What specific purposes will the funding be used for?
• What is your proposed timeline for the utilization of funds?
• What types of funding (e.g., equity, loan) are you pursuing?
• How will investors or lenders get a return on their investment?
• What is the current financial position of the business?
• How much equity are you willing to exchange for investment?
• What are the key financial milestones that the funding will help achieve?
• What are the terms you’re seeking for any loans?
• How do you plan to manage cash flow and ensure financial stability?
• What collateral, if any, are you offering to back up your funding request?
• How does the funding impact your business’s financial projections?
• What is the exit strategy for investors?
• How will additional funding influence your strategic business decisions?
• What contingencies do you have in place if you don’t secure the expected funding?

Financial Projections and Feasibility

• What are your financial forecasts for the next three to five years?
• How did you arrive at your revenue and expense estimates?
• What are the key assumptions underlying your financial projections?
• What are the projected cash flow statements for the next few years?
• What is your break-even analysis showing?
• What are your strategies for maintaining a healthy profit margin?
• How do you plan to monitor and manage financial risks?
• What is your approach to pricing and cost control?
• How will you balance reinvestment in the business with profitability?
• What financial metrics will you use to gauge business performance?
• How will you handle unexpected financial shortfalls or emergencies?
• What is your strategy for financial record-keeping and accounting?
• How do customer payment terms and cycles affect your cash flow?
• What financial software or tools do you use for projections?
• How will financial trends and economic conditions potentially impact your projections?

Appendix and Supporting Documents

• What supporting documents will you include in the appendix?
• How will these documents reinforce your business plan’s credibility?
• What resumes or biographies of your team members will you present?
• What legal documents are relevant to include (e.g., licenses, permits)?
• How can we access extensive market studies mentioned in the plan?
• What are your key technical product specifications or service descriptions?
• How do your financial statements and accounting documents get audited?
• What testimonials or case studies from customers can you showcase?
• What press coverage or media mentions has your business received?
• Can you provide industry endorsements or expert opinions?
• How will technology prototypes or demos be made available for review?
• What are your policies and procedures manuals like?
• How do your charts, graphs, and tables support your plan’s data?
• What correspondence or contracts with suppliers/partners are appropriate to include?
• How does your intellectual property documentation reflect on your business’s value?

Frequently Asked Questions

Can i write a business plan myself, or should i hire a professional.

Writing a business plan yourself is possible, especially with the aid of specific questions that cover all business aspects. However, hiring a professional can provide expertise and a polished result, particularly if you seek significant funding.

How often should I update my business plan?

Regular updates are crucial—annually at minimum or more often if your business is rapidly changing. This keeps your business plan relevant and useful as a dynamic, guiding document.

What’s the most critical part of a business plan?

While all sections are important, the Executive Summary is critical as it’s often the first (and sometimes only) part read by potential investors or partners. Clear and compelling financial projections are also vital for potential funders.

Final Thoughts

As your blueprint comes together, remember that the strength of your business plan lies in its details and its ability to represent the vision and practicalities of your enterprise honestly.

The questions outlined will challenge you to think critically, anticipate future hurdles, and prepare for success. With these comprehensive inquiries as your cornerstone, you can turn your business from a dream into an actionable, thriving reality.

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30+ Business Plan Questions & Step-By-Step Business Plan Guide

Last Updated: 30 May 2024

10 min read

Table Of Contents

• 30+ Business Plan Question s

8 Steps to Creating a Full-Proof Business Plan

• SurveySparrow: The Best Business Plan Tool

Whether in business, marketing, or sales, you know how crucial a solid business plan is to your success. It’s not just about getting started—it’s about setting a clear direction for growth and innovation. This blog is your first step toward clarity and strategy.

Creating a comprehensive business plan is critical for entrepreneurs and business owners. It serves as a roadmap for your business and helps secure funding from investors and banks.

A well-crafted business plan should address key areas of your business, providing a detailed overview of its objectives, strategies, and financial projections.

Here’s a guide structured around crucial categories, each followed by pertinent business plan questions that will help in developing a robust business plan

30 Critical Business Plan Questions to Ask

Whether you’re steering a startup toward uncharted territories, aiming to elevate an established brand, or driving relentless sales growth, your business plan is the compass that guides your strategy, operations, and financial foresight.

Understanding this, we’ve compiled 30 questions designed to ignite your planning process and refine your business strategy.

Here we go.

Executive Summary

• What is your business’s mission statement?
• What products or services does your business offer?
• Who are the founders, and what is their background?
• What is the current stage of the business (concept, start-up, expansion)?
• What are the key financial highlights?

Market Analysis

6. Who is your target market, and how large is it? 7. What are the current trends and growth in your industry? 8. Who are your competitors, and what are their strengths and weaknesses? 9. How does your business fit into the market? 10. What is your unique value proposition?

Wait, wouldn’t you need a survey to run these questions and gather feedback? What if I told you that you can do that easily with Surveysparrow .

If you’re ready to chart your business path, grab our Free Business Plan Questionnaire Template . Begin your journey to success now.

Sign up for free with your email and start using it right away.

Preview Template

 Marketing and Sales Strategy

11. How will you reach your target market (marketing channels)? 12. What is your pricing strategy? 13. How do you plan to sell your product or service? 14. What is your sales forecast for the first year? 15. How will you measure the success of your marketing efforts?

Operations Plan

16. What is the location of your business, and why? 17. What facilities and equipment do you need? 18. Who are your suppliers, and what are your supply chain logistics? 19. What is the production process? 20. How will you ensure quality control and customer service?

Management and Organization

21. Who makes up the management team, and what are their roles? 22. How does your organizational structure look? 23. What are the backgrounds of your team members? 24. What gaps in expertise or knowledge exist in your team? 25. How will you fill these gaps (hiring, advisors, etc.)?

Financial Plan

26. What are your startup costs? 27. What is your break-even analysis? 28. What are your projected profit and loss statements for the first 1-3 years? 29. What are your cash flow projections? 30. What are the assumptions underlying your financial projections?

By carefully answering these questions, you can construct a thorough business plan that addresses all the critical components needed for your business’s success. Remember, a business plan is not a static document; it should evolve as your business grows and adapts to market changes.

• A Journey Begins: Identifying the Problem
• The Voyage of Discovery: Defining Your Customers
• The Battle Plan: Reaching Your Customers
• Understanding the Landscape: Identifying Your Competitors
• The Strategy Map: Outlining Your Operational Plan
• Charting the Course: Defining Your Business Structure
• The Guardian of Your Venture: Creating a Risk Management Plan
• Calculating the Costs: Budgeting and Financial Projections

1. Identify the Problem

Just as any memorable journey starts with a step, every successful business starts with identifying a problem.

The burning question to answer here is: what problem is your business attempting to solve? Remember, the more specific the issue, the better your chances of designing a unique solution that customers will flock to.

2. Define Your Customers

Identifying your target customer is crucial in the business planning process. This involves understanding and defining your potential customers’ specific demographics, psychographics, behaviors, and needs.

By doing this, you can tailor your products, services, and marketing strategies to meet their specific needs. The more precisely you can define your target audience , the more effectively you can serve them and set your business up for success.

3. Reach Your Customers

Now that You’ve discovered your target customers. Now comes the next challenge: How do you reach them?

Consider all possible marketing channels. Will it be social media? Email newsletters? Influencer partnerships? The choice is yours, but ensure it aligns with where your customers spend their time. After all, there’s no point in sending smoke signals if your customers are tuned into the radio.

 4. Identify Your Competitors

Now you have your bearings; it’s time to study the lay of the land. This means understanding your competition. The question is: Who are they, and how do they solve the same problem?

Understanding your competitors will help you differentiate your business and position it uniquely in the market. After all, in the quest for customer loyalty, your unique selling proposition (USP) is your Excalibur.

 5. Outline Your Operational Plan

So, you’ve identified the problem, defined your customers, planned your marketing, and sized up the competition. You’re almost ready to set sail. But first, there’s another significant piece of the business puzzle to put in place: your operational plan.

Your operational plan should include a detailed plan for sourcing deals. Using the Grata data deal sourcing platform can further help streamline this process and ensure you have access to the most relevant and up-to-date information.

How will your business function day-to-day? What resources will you need? Answering these business plan questions will help you create a clear blueprint of your business operations, ensuring your venture runs as smoothly as a well-oiled machine.

6. Define Your Business Structure

One question that’s often overlooked in the excitement of crafting business plans is this: What is your business structure? Sole proprietorship, partnership, corporation, or LLC ?

Your business structure will significantly affect taxation, liability, and other legalities. It’s like choosing the right ship for your journey – you need one that will safely weather the storms of your entrepreneurial voyage.

7. Create a Risk Management Plan

In the entrepreneurship journey, bumps and detours are part of the course. Having a risk management plan is essential. The business plan question is: What potential obstacles might you face, and how will you mitigate them?

A well-thought-out risk management plan ensures you’re prepared for the challenges ahead.

8. Create Budget and Financial Projections

Now, onto the numbers. What will be the cost of starting and running your business? How soon before you break even? Financial forecasts might seem as daunting as navigating uncharted waters, but they’re vital in answering the essential business-related question : Will your venture be financially viable?

How Can SurveySparrow Help You in Critical Business Planning

With SurveySparrow by your side, you’re never alone in your business planning journey. Its extensive suite of customer and employee experience tools offers invaluable insights to help answer all these key questions in your business plan.

Use SurveySparrow to conduct comprehensive market research, understand customer behavior, and even keep tabs on employee satisfaction. With this trusty tool, you’re well-equipped to answer all your business plan questions, ensuring your entrepreneurial journey is successful.

Here’s how you can do it.

Market Research : SurveySparrow allows you to design and distribute surveys to gather insights about your market. You can explore potential customer needs, preferences, and pain points and evaluate market trends and size, all of which are critical inputs for your business plan.

Customer Segmentation and Profiling : Using SurveySparrow, you can categorize your potential customers based on their preferences, behavior, demographics, and more. This can help you define your target market, tailor your offerings, and devise effective marketing strategies.

Competitor Analysis : By surveying consumers, you can gain insights about your competitors – their strengths, weaknesses, and what customers think of them. This data can be vital in positioning your business uniquely in the market.

Pricing Strategy : You can use surveys to understand what customers are willing to pay for your product or service, helping you devise a suitable pricing strategy.

Risk Assessment : Use surveys to gather feedback about potential risks or barriers to your business. Understanding these risks in advance can help you form strategies to mitigate them.

Employee Engagement : If you plan to have employees, understanding their needs and expectations is crucial for crafting your operations plan and culture. SurveySparrow can assist with gathering employee feedback and gauging engagement .

Product Testing : Before launching, you can use SurveySparrow to get feedback on your product or service. This can help you fine-tune it according to your target market’s needs and preferences.

Financial Projections : The data you gather from customer and market surveys can help inform your sales forecasts and financial projections, key business plan components .

In short, SurveySparrow can offer a wealth of information, helping you answer the critical questions in your business plan. You’re better equipped to create a robust, data-driven business plan by leveraging these tools.

14-day free trial • Cancel Anytime • No Credit Card Required • No Strings Attached

That’s All of It.

Remember, every successful business starts with a comprehensive business plan. And every comprehensive business plan starts with answering the right questions. So, go ahead and take the plunge. Your entrepreneurial journey awaits, and with SurveySparrow as your co-pilot, you’re set for an exciting voyage.

After all, the sky’s the limit regarding what you can achieve in the business world. Onwards and upwards, future tycoons!

Growth Marketer at SurveySparrow

Passionate, eidetic, and a writer at large.

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Business plans might seem like an old-school stiff-collared practice, but they deserve a place in the startup realm, too. It’s probably not going to be the frame-worthy document you hang in the office—yet, it may one day be deserving of the privilege.

Whether you’re looking to win the heart of an angel investor or convince a bank to lend you money, you’ll need a business plan. And not just any ol’ notes and scribble on the back of a pizza box or napkin—you’ll need a professional, standardized report.

Bah. Sounds like homework, right?

Yes. Yes, it does.

However, just like bookkeeping, loan applications, and 404 redirects, business plans are an essential step in cementing your business foundation.

Don’t worry. We’ll show you how to write a business plan without boring you to tears. We’ve jam-packed this article with all the business plan examples, templates, and tips you need to take your non-existent proposal from concept to completion.

Table of Contents

What Is a Business Plan?

Tips to Make Your Small Business Plan Ironclad

How to Write a Business Plan in 6 Steps

Startup Business Plan Template

Business Plan Examples

Work on Making Your Business Plan

How to Write a Business Plan FAQs

What is a business plan why do you desperately need one.

A business plan is a roadmap that outlines:

• Who your business is, what it does, and who it serves
• Where your business is now
• Where you want it to go
• How you’re going to make it happen
• What might stop you from taking your business from Point A to Point B
• How you’ll overcome the predicted obstacles

While it’s not required when starting a business, having a business plan is helpful for a few reasons:

• Secure a Bank Loan: Before approving you for a business loan, banks will want to see that your business is legitimate and can repay the loan. They want to know how you’re going to use the loan and how you’ll make monthly payments on your debt. Lenders want to see a sound business strategy that doesn’t end in loan default.
• Win Over Investors: Like lenders, investors want to know they’re going to make a return on their investment. They need to see your business plan to have the confidence to hand you money.
• Stay Focused: It’s easy to get lost chasing the next big thing. Your business plan keeps you on track and focused on the big picture. Your business plan can prevent you from wasting time and resources on something that isn’t aligned with your business goals.

Beyond the reasoning, let’s look at what the data says:

• Simply writing a business plan can boost your average annual growth by 30%
• Entrepreneurs who create a formal business plan are 16% more likely to succeed than those who don’t
• A study looking at 65 fast-growth companies found that 71% had small business plans
• The process and output of creating a business plan have shown to improve business performance

Convinced yet? If those numbers and reasons don’t have you scrambling for pen and paper, who knows what will.

Don’t Skip: Business Startup Costs Checklist

Before we get into the nitty-gritty steps of how to write a business plan, let’s look at some high-level tips to get you started in the right direction:

Be Professional and Legit

You might be tempted to get cutesy or revolutionary with your business plan—resist the urge. While you should let your brand and creativity shine with everything you produce, business plans fall more into the realm of professional documents.

Think of your business plan the same way as your terms and conditions, employee contracts, or financial statements. You want your plan to be as uniform as possible so investors, lenders, partners, and prospective employees can find the information they need to make important decisions.

If you want to create a fun summary business plan for internal consumption, then, by all means, go right ahead. However, for the purpose of writing this external-facing document, keep it legit.

Know Your Audience

Your official business plan document is for lenders, investors, partners, and big-time prospective employees. Keep these names and faces in your mind as you draft your plan.

Think about what they might be interested in seeing, what questions they’ll ask, and what might convince (or scare) them. Cut the jargon and tailor your language so these individuals can understand.

Remember, these are busy people. They’re likely looking at hundreds of applicants and startup investments every month. Keep your business plan succinct and to the point. Include the most pertinent information and omit the sections that won’t impact their decision-making.

Invest Time Researching

You might not have answers to all the sections you should include in your business plan. Don’t skip over these!

Your audience will want:

• Detailed information about your customers
• Numbers and solid math to back up your financial claims and estimates
• Deep insights about your competitors and potential threats
• Data to support market opportunities and strategy

Your answers can’t be hypothetical or opinionated. You need research to back up your claims. If you don’t have that data yet, then invest time and money in collecting it. That information isn’t just critical for your business plan—it’s essential for owning, operating, and growing your company.

Stay Realistic

Your business may be ambitious, but reign in the enthusiasm just a teeny-tiny bit. The last thing you want to do is have an angel investor call BS and say “I’m out” before even giving you a chance.

The folks looking at your business and evaluating your plan have been around the block—they know a thing or two about fact and fiction. Your plan should be a blueprint for success. It should be the step-by-step roadmap for how you’re going from Point A to Point B.

How to Write a Business Plan—6 Essential Elements

Not every business plan looks the same, but most share a few common elements. Here’s what they typically include:

• Executive Summary
• Business Overview
• Products and Services
• Market Analysis
• Competitive Analysis
• Financial Strategy

Below, we’ll break down each of these sections in more detail.

1. Executive Summary

While your executive summary is the first page of your business plan, it’s the section you’ll write last. That’s because it summarizes your entire business plan into a succinct one-pager.

Begin with an executive summary that introduces the reader to your business and gives them an overview of what’s inside the business plan.

Your executive summary highlights key points of your plan. Consider this your elevator pitch. You want to put all your juiciest strengths and opportunities strategically in this section.

2. Business Overview

In this section, you can dive deeper into the elements of your business, including answering:

• What’s your business structure? Sole proprietorship, LLC, corporation, etc.
• Where is it located?
• Who owns the business? Does it have employees?
• What problem does it solve, and how?
• What’s your mission statement? Your mission statement briefly describes why you are in business. To write a proper mission statement, brainstorm your business’s core values and who you serve.

Don’t overlook your mission statement. This powerful sentence or paragraph could be the inspiration that drives an investor to take an interest in your business. Here are a few examples of powerful mission statements that just might give you the goosebumps:

• Patagonia: Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
• Tesla: To accelerate the world’s transition to sustainable energy.
• InvisionApp : Question Assumptions. Think Deeply. Iterate as a Lifestyle. Details, Details. Design is Everywhere. Integrity.
• TED : Spread ideas.
• Warby Parker : To offer designer eyewear at a revolutionary price while leading the way for socially conscious businesses.

3. Products and Services

As the owner, you know your business and the industry inside and out. However, whoever’s reading your document might not. You’re going to need to break down your products and services in minute detail.

For example, if you own a SaaS business, you’re going to need to explain how this business model works and what you’re selling.

You’ll need to include:

• What services you sell: Describe the services you provide and how these will help your target audience.
• What products you sell: Describe your products (and types if applicable) and how they will solve a need for your target and provide value.
• How much you charge: If you’re selling services, will you charge hourly, per project, retainer, or a mixture of all of these? If you’re selling products, what are the price ranges?

4. Market Analysis

Your market analysis essentially explains how your products and services address customer concerns and pain points. This section will include research and data on the state and direction of your industry and target market.

This research should reveal lucrative opportunities and how your business is uniquely positioned to seize the advantage. You’ll also want to touch on your marketing strategy and how it will (or does) work for your audience.

Include a detailed analysis of your target customers. This describes the people you serve and sell your product to. Be careful not to go too broad here—you don’t want to fall into the common entrepreneurial trap of trying to sell to everyone and thereby not differentiating yourself enough to survive the competition.

The market analysis section will include your unique value proposition. Your unique value proposition (UVP) is the thing that makes you stand out from your competitors. This is your key to success.

If you don’t have a UVP, you don’t have a way to take on competitors who are already in this space. Here’s an example of an ecommerce internet business plan outlining their competitive edge:

FireStarters’ competitive advantage is offering product lines that make a statement but won’t leave you broke. The major brands are expensive and not distinctive enough to satisfy the changing taste of our target customers. FireStarters offers products that are just ahead of the curve and so affordable that our customers will return to the website often to check out what’s new.

5. Competitive Analysis

Your competitive analysis examines the strengths and weaknesses of competing businesses in your market or industry. This will include direct and indirect competitors. It can also include threats and opportunities, like economic concerns or legal restraints.

The best way to sum up this section is with a classic SWOT analysis. This will explain your company’s position in relation to your competitors.

6. Financial Strategy

Your financial strategy will sum up your revenue, expenses, profit (or loss), and financial plan for the future. It’ll explain how you make money, where your cash flow goes, and how you’ll become profitable or stay profitable.

This is one of the most important sections for lenders and investors. Have you ever watched Shark Tank? They always ask about the company’s financial situation. How has it performed in the past? What’s the ongoing outlook moving forward? How does the business plan to make it happen?

Answer all of these questions in your financial strategy so that your audience doesn’t have to ask. Go ahead and include forecasts and graphs in your plan, too:

• Balance sheet: This includes your assets, liabilities, and equity.
• Profit & Loss (P&L) statement: This details your income and expenses over a given period.
• Cash flow statement: Similar to the P&L, this one will show all cash flowing into and out of the business each month.

It takes cash to change the world—lenders and investors get it. If you’re short on funding, explain how much money you’ll need and how you’ll use the capital. Where are you looking for financing? Are you looking to take out a business loan, or would you rather trade equity for capital instead?

Read More: 16 Financial Concepts Every Entrepreneur Needs to Know

Startup Business Plan Template (Copy/Paste Outline)

Ready to write your own business plan? Copy/paste the startup business plan template below and fill in the blanks.

Executive Summary Remember, do this last. Summarize who you are and your business plan in one page.

Business Overview Describe your business. What’s it do? Who owns it? How’s it structured? What’s the mission statement?

Products and Services Detail the products and services you offer. How do they work? What do you charge?

Market Analysis Write about the state of the market and opportunities. Use date. Describe your customers. Include your UVP.

Competitive Analysis Outline the competitors in your market and industry. Include threats and opportunities. Add a SWOT analysis of your business.

Financial Strategy Sum up your revenue, expenses, profit (or loss), and financial plan for the future. If you’re applying for a loan, include how you’ll use the funding to progress the business.

5 Frame-Worthy Business Plan Examples

Want to explore other templates and examples? We got you covered. Check out these 5 business plan examples you can use as inspiration when writing your plan:

• SBA Wooden Grain Toy Company
• SBA We Can Do It Consulting
• OrcaSmart Business Plan Sample
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Get to Work on Making Your Business Plan

If you find you’re getting stuck on perfecting your document, opt for a simple one-page business plan —and then get to work. You can always polish up your official plan later as you learn more about your business and the industry.

Remember, business plans are not a requirement for starting a business—they’re only truly essential if a bank or investor is asking for it.

Ask others to review your business plan. Get feedback from other startups and successful business owners. They’ll likely be able to see holes in your planning or undetected opportunities—just make sure these individuals aren’t your competitors (or potential competitors).

Your business plan isn’t a one-and-done report—it’s a living, breathing document. You’ll make changes to it as you grow and evolve. When the market or your customers change, your plan will need to change to adapt.

That means when you’re finished with this exercise, it’s not time to print your plan out and stuff it in a file cabinet somewhere. No, it should sit on your desk as a day-to-day reference. Use it (and update it) as you make decisions about your product, customers, and financial plan.

Review your business plan frequently, update it routinely, and follow the path you’ve developed to the future you’re building.

Keep Learning: New Product Development Process in 8 Easy Steps

What financial information should be included in a business plan?

Be as detailed as you can without assuming too much. For example, include your expected revenue, expenses, profit, and growth for the future.

What are some common mistakes to avoid when writing a business plan?

The most common mistake is turning your business plan into a textbook. A business plan is an internal guide and an external pitching tool. Cut the fat and only include the most relevant information to start and run your business.

Who should review my business plan before I submit it?

Co-founders, investors, or a board of advisors. Otherwise, reach out to a trusted mentor, your local chamber of commerce, or someone you know that runs a business.

Ready to Write Your Business Plan?

Don’t let creating a business plan hold you back from starting your business. Writing documents might not be your thing—that doesn’t mean your business is a bad idea.

Let us help you get started.

Join our free training to learn how to start an online side hustle in 30 days or less. We’ll provide you with a proven roadmap for how to find, validate, and pursue a profitable business idea (even if you have zero entrepreneurial experience).

Stuck on the ideas part? No problem. When you attend the masterclass, we’ll send you a free ebook with 100 of the hottest side hustle trends right now. It’s chock full of brilliant business ideas to get you up and running in the right direction.

About Jesse Sumrak

Jesse Sumrak is a writing zealot focused on creating killer content. He’s spent almost a decade writing about startup, marketing, and entrepreneurship topics, having built and sold his own post-apocalyptic fitness bootstrapped business. A writer by day and a peak bagger by night (and early early morning), you can usually find Jesse preparing for the apocalypse on a precipitous peak somewhere in the Rocky Mountains of Colorado.

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Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

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50 Questions to Ask Before Starting a New Business

Starting a business is an inherently risky venture. Getting your business off the ground requires a plan, capital, and a whole lot of hard work. From coming up with a great business idea to creating the proper business structure to execute this idea; from raising the money to fund startup costs to conducting the market research to justify your company’s raison d’etre, there are tons of steps before you can even think about opening the doors (physical or virtual) to your customers.

If you’re looking for a quick pathway from idea to implementation, we strongly recommend jumping from here to our article highlighting the 10 Steps to Starting a Business.

On the other hand, if you’re still in the early planning stages, you’ve come to the right place. The best way to really get the ball rolling is to start by asking yourself all the tough questions first. While you may not have an exact answer for each of these questions, this collection of inquiries is a great way to get you thinking about everything–big and small–that goes into launching your own business.

50 Questions To Help You Start a Successful Business

There’s obviously a lot that goes into getting a business off the ground. So how can you be sure you’ve thought of everything first? Well, you can’t. Rule number one–be prepared for the unexpected as a business owner. That said, you can take every possible step to reduce the risk of the unexpected. We’ve devised 50 critical questions to help you do exactly that. Because there’s a lot here, we’ve divided these questions into specific areas. Read on to find out which questions you should be asking about your Business Idea and Structure, the Competition and Customers shaping the marketplace, the Financial and Organizational components you’ll need to address to build your business, and finally, the Brand that you’ll be working to establish.

The Business Idea

1. What problem are you solving?

This is the very first question you need to ask yourself, because it will ultimately tell you whether or not there’s an actual need for the product or service you plan to market. Where did your business idea come from? Have you observed an unsatisfied demand for a certain product or service, or the need for innovation or improvement in the way a product or service is delivered? Perhaps you’ve found a way to offer quality with greater affordability, or a faster delivery system, or simply with a more customer friendly approach than the industry standard. Whatever it is that roots your business idea, be sure it’s something that addresses an actual problem with a viable solution. Moreover, be sure that the solution you’re offering is also profitable. Indeed, your goal here is to identify the need for your idea as well as the ability of this idea to generate profit.

2. Do you have a business plan?

Of course, it’s one thing to say that you have a great idea that can render a profit. It’s another thing to show it. That’s what your business plan is for. This is your chance to explain your idea in its entirety–to conduct a SWOT (Strengths; Weaknesses; Opportunities; Threats) analysis; to elaborate on the key features of the broader marketplace including the competition and the customers; to present financial forecasts that demonstrate the idea’s profitability; and more. That said, there aren’t necessarily any formal rules on what must be in a business plan. As an article from the Small Business Administration (SBA) notes, “A business plan is a written tool about your business that projects 3-5 years ahead and outlines the path your business intends to take to make money and grow revenue. Think of it as a living project for your business, and not as a one-time document. Break it down into mini-plans – one for sales and marketing, one for pricing, one for operations, and so on.” Ultimately, this will be a valuable document for securing bank loans, investor funding, or just for giving yourself a set of meaningful benchmarks to pursue. Developed properly, your business plan should give you the chance to think objectively about the various moving pieces that must ultimately come together to transform your idea into a reality.

3. What is your Unique Selling Proposition (USP)?

What is the value that you will offer your customers? Is there really a demand for this value, and can you actually deliver it? And can you deliver that value in a way that betters the current offerings in the marketplace? The key behind a great idea is that it will likely resonate with prospective customers either because it provides something heretofore unseen in the marketplace, because it significantly improves upon something in the marketplace, because it improves the accessibility of something in the marketplace for which there is great demand, or because it otherwise represents a distinct value to the customer that cannot be obtained elsewhere. Make sure you fully understand what makes your product or service offering unique, and just as importantly, why these unique properties represent a chance for profitability.

4. Is there a proof of concept for your idea?

So you’ve established the unique value proposition implied by your idea. But how can you be sure that it’s something people will actually pay for? That’s where proof of concept comes in. According to the definition provided by the Gartner Glossary of business terms, a proof of concept “is a demonstration of a product, service or solution in a sales context. A POC should demonstrate that the product or concept will fulfill customer requirements while also providing a compelling business case for adoption.” In other words, is there some precedent to prove that people will pay for what you’re offering? While your offering may be a unique proposition, is there a track record of success for similar product or service offerings? Have you yourself experienced even anecdotal success selling others on your product or service? And is that anecdotal success compelling enough to justify the launching of an entire business? In short, you’re looking to find the perfect balance between something that is at once novel and proven–a unique value spin on a product or service with a proven track record.

5. Have you thought of a good business name?

Believe it or not, this is one of the toughest parts of the process. Coming up with the perfect name can be genuinely challenging. And that makes sense. After all, a lot rests on a business name. The right name effectively describes what your business does, conveys the identity of your business, and gives your target customers something memorable to latch onto. While an imperfect name may not doom your business idea to failure, the perfect name could be a real game changer in your pursuit of success. Don’t rush this stage. Take the time to brainstorm ideas, run them by people you know and trust, and don’t settle for something that doesn’t feel right. Once you come up with the right business name, you can move on to the clerical steps like registration, licensing, and tax filing.

6. Can you explain your business idea in just a few words?

There’s an old adage that says, “if you can’t explain it simply, you don’t understand it well enough.” The quote is sometimes attributed to Albert Einstein, though historians have generally disputed this, especially in light of the actual complexity of his scientific theories. To wit, it may well have been coined by an unknown business magnate, because it applies brilliantly to the notion of a business startup. You need to be able to explain your business idea in as little as 30 seconds–the length of the so-called elevator pitch. This is important, because that’s about how long the attention span is of the average person. The attention span may be even shorter for the average venture capitalist. If you’re looking to excite others about your idea, perhaps even enough to net a few worthy investors, you need to be able to convey your business idea in a way that is at once compelling, clear and concise.

The Business Structure

7. What will be the legal structure of your business?

Now is the time to determine the best legal structure for your business based on the scale of your operation, the legal liabilities specific to your sector, and the nature of your product or service. Will your business be a sole proprietorship, a limited liability company, a partnership, or a corporation? Is your business intended as a non-profit entity, a religious organization seeking tax exempt status, or a traditional brick and mortar business in the retail space? Each of these entity types will come with its own specific rules for registration, licensing, tax status, operational regulations, and more. It’s up to you to determine which of these models makes the most sense for your product or service. If you’re not sure, this is a great time to consult a business attorney. You’ll want to be sure you get this step right as so many subsequent steps will hinge on making the right call here.

8. Do you need to register your business? 

The answer to this question may be different for every aspiring business owner and will depend on factors like your locality, the nature of your business, and the intended scale of your operation. In most cases, registration will be pretty straightforward, but it may not always be necessary. As an article from the Small Business Administration (SBA) notes, “For most small businesses, registering your business is as simple as registering your business name with state and local governments. In some cases, you don’t need to register at all. If you conduct business as yourself using your legal name, you won’t need to register anywhere. But remember, if you don’t register your business, you could miss out on personal liability protection, legal benefits, and tax benefits.” As long as you’re speaking with a lawyer about the structure of your business, you’ll probably want to inquire about these protections and benefits. Determine whether or not it makes sense to register your business. But bear in mind that you’ll probably need to register your business in order to respond in the affirmative to the next question.

9. Do you have an Employer Identification Number (EIN)?

This is important because you’ll need this number for just about everything else that comes with starting a business. Your EIN is kind of like a social security number, but for your business. This is what the U.S. government uses to identify your business as an official taxpaying entity. As an article from the Small Business Administration notes, “Your Employer Identification Number (EIN) is your federal tax ID. You need it to pay federal taxes, hire employees, open a bank account, and apply for business licenses and permits. It’s free to apply for an EIN, and you should do it right after you register your business.” The SBA explains that you’ll need an EIN to do everything from operating as a corporation to establishing a partnership; from paying employees to filing tax returns for employment; from withholding income tax from employees to overseeing certain tax-deferred pension plans. In other words, getting an EIN should be among your first steps. The good news is that it’s pretty easy to get an EIN directly through the IRS EIN assistance portal .

10. Do you have a general business license? No matter what kind of business you plan to operate, you are required to have a business license. In the vast majority of cases, a General Business License will suffice, and this will usually be issued by your locality. According to an article from Investopedia, “ Any business, including home-based businesses, must obtain a local city or county business license. This is a basic license that allows the holder to engage in business activities within the local jurisdiction. If your city or county doesn’t have a specific business licensing department, you can obtain information on obtaining a basic business license at your local tax office.”

11. Does your business model require a special sales tax license?

Depending on where you plan to operate, this license may already be included as part of the general business license. But this is not always the case. And where it isn’t the case, you are legally liable for ensuring that you do carry this additional licensing. According to the article from Investopedia “A sales tax license may be part of the general business license in some areas. But a separate sales tax license is required in other areas in addition to a local business license. Not sure if you need a separate tax license? The local department from which you obtain a business license can tell you if you must obtain a separate sales tax license and where to get it at either the state or local level. Make sure that you have this covered before you open your business.” Indeed, failure to do so could actually make you criminally liable.

12. Do you require special permits to conduct your business?

However you slice it, you will need to get this license. However, there is also specialized permitting that you may need to get. This will largely depend on the nature of your business. Permits, as per their name, give you permission to engage in specific business activities within your locality, and will usually be granted by a professional association specific to your sector. For instance, say the article from Investopedia, “ Environmental licenses or health department permits are less common for home-based businesses. These documents are most generally required for businesses that engage in the wholesale or retail sale of food and beverage products. In any event, it’s easy enough to check with state environmental protection agencies or local health departments to find out if your business requires any type of environmental inspection or permit.”

13. Do you need specialized insurance?

The answer to this question will depend on the nature of your business, as well as the organization, resources, and personnel involved in this business. If you are a sole proprietorship selling a creative service like web design or digital marketing, you won’t likely require any special insurance coverage to operate out of your home office space. On the other hand, if you plan to rent or purchase property for the operation of your business, you plan to hire employees, you expect to operate vehicles or machinery in the production or delivery of your products or services, or you are manufacturing a retail item that will find its way into the homes of consumers, you may need to carry certain specialized insurance policies. This may include commercial property insurance, professional liability insurance, or general liability insurance. Some small business owners will choose to carry a generalized business insurance simply in order to mitigate unforeseen risks and legal entanglements. If you’re not sure which types of insurance are recommended or required in your sector, consult a business attorney.

14. Are there zoning requirements you need to be aware of?

Before you start a business in your locality, make sure you’re aware of any practical legal limitations on what you can and can’t do. If you’re planning to rent or purchase a property, be sure you understand all the zoning rules in your municipality and county. Will your business objectives be in compliance with these rules? Are there additional steps you’ll need to take, and expenses you’ll need to sustain, in order to achieve compliance? You may need to ask these same questions if you plan to run your business out of your own home. Be sure that you are aware of any rules or regulations imposed by your township or country regarding the operation of certain business types from spaces that are zoned as residential properties.

15. Does your Home Owners Association (HOA) have any rules about operating a home business?`

Speaking of operating a business out of your own home, many communities and developments are overseen by organizations called Home Owners Associations (HOA). HOAs often have pretty far reaching rules about how you can and can’t use your residential space. Some may even have restrictions on operating a business out of your home. This is something you’ll want to be aware of before you attempt to launch a business from your home office or backyard workshop. If your HOA forbids this type of commercial activity, you may be required to rent or purchase an alternative space for the operation of your business. Naturally, this means you’ll need to factor this cost into your operating expenses.

The Competition

16. Who are the leading competitors in the space you’re entering?

Find out everything you can about the businesses that are leading in your space. Which companies are dominating in sales and market share? Which companies have succeeded in establishing a sturdy reputation in the space, and which entrants have made the biggest splash as innovators? In addition to finding out who these competitors are, you should know how each one has built a successful business in the space you plan to enter. An article from Business News Daily advises exploring all aspects of your competitors’ business to achieve a comprehensive understanding of what has allowed them to succeed. According to Business News Daily, “these aspects could be pricing, distribution and delivery strategies, market share, new products or services coming to market, who their long-standing, highest-spending customers are, the quality of after-sales support, and which sales and marketing channels they use.”

17. Is there room for a new entrant?

Now that you understand a bit more about the competition, you should be in a better position to honestly assess this question. How much space is there in the market for a new entrant? Are you facing down a field in which the competition is endowed with billions of dollars in operating capital? Is the field saturated with other startup businesses looking to build their own reputations as trailblazers? (Cryptocurrency industry–I’m looking in your direction.) As you prepare to make your own splash in a selected marketplace, do some honest soul searching about how much space there really is for your idea in this sector. If you find a marketplace that is deeply tilted toward just a few monopolistic entities, or one that is absolutely teeming with would-be innovators, you may want to turn your attention elsewhere.

18. Are you looking to innovate in your field?

Speaking of innovators, are you among them? This ties directly into the question of your Unique Sales Proposition (USP). Are you preparing to offer a product that significantly enhances what has previously been available in the marketplace? Is your service offering a meaningful step forward from previous service offerings in the same space? If you are offering customers something that is truly a distinctive, first-of-its-kind purchasing opportunity, you may be in a position to transform the marketplace, and place yourself at the forefront of this transformation. Before you enter the field, determine whether you plan to work within the parameters already established by those who came before you or whether you plan to disrupt the industry with exciting new innovations.

19. How will you differentiate your business offering from the competition?

Of course, innovation isn’t the only way to differentiate your offering from others in the marketplace. You can find ways to make your products and services more affordable, more accessible, more efficient, or more functional. Even incremental improvements in what’s available could set your company apart. An article from Business News Daily asks, “Could you improve the quality of your products or services by adding or amending a feature, lowering the price to be more affordable or improving after-sales support? Could you achieve a better ROI on your marketing budget by investing in a more capable CRM for better lead management?” Determine how you will set yourself apart, both from those who have established themselves as leaders in the space, and from those who are going head to head with you at the startup tier.

20. Is there anybody else who can do what you plan to do?

Do you have an ace in the hole–something that your business will do or offer that nobody else can replicate? Have you invented an exciting proprietary technology, or created an unparalleled synergy with another business partner, or is your team simply loaded with the type of intellect and talent that other companies can’t match? Identify the greatest strengths that your business has to offer, whether these are features embodied in your personnel, your products, your structure, or all of the above. Once you know what these strengths are, do everything you can to magnify them. These strengths will be your greatest selling point when it comes to beating the competition.

21. How has this industry or space changed in the last several years? Where is it going in the future?

Beyond just studying the current players in your business, you should have a strong sense of the history of your space. What are the trends and innovations that have helped to shape your area of the market? Are there technological or conceptual developments that have been inflection points in this field? And how has the field evolved since these inflection points? Try to gain a full understanding of the leading trends in the marketplace, as well as the path that led to this point. The better you understand what came before, the more readily you will be able to anticipate future developments in your field. Naturally, this anticipation could be the key to tremendous success.

22. What do the success stories in your industry look like?

Speaking of success, it’s not a bad idea to get a firsthand glimpse at exactly what this looks like. You’ve already identified the leading competitors in the field. Now find out what got them to where they are today? What was the unique value proposition that each of these successful businesses offered? What innovations did these businesses bring to the market? In short, what were the keys to their success? Whether you hope to replicate, build on, or surpass that success, the first step is to fully understand how your competitors achieved it. Every company has a story. Explore these stories and think about how they can inform your success.

23. What do the failures in your industry look like?

Not to be negative, but you can also learn a lot from the failures in your midst. Just as the sector you plan to enter is populated with winners, the world of business must also have losers. Find out more about the also-rans, the companies that tried, failed, and folded. These are cautionary tales with tremendous value to you, as a new entrant into the field. What were the causes of their failure–a failure to differentiate themselves, a lack of capital, poor organization, or just bad luck? All are possibilities, and more. Before you launch your business, use these stories of disappointment and poor fortune to identify, anticipate and sidestep your own pitfalls.

The Customers

24. Who are your customers?

Now that you know the competition, it’s absolutely critical that you also identity your customer base. Which demographics do you expect to serve, and more importantly, how well do you know the real people who make up these demographics. You need to understand your target if you are to effectively market to these populations. One helpful exercise here is to actually create target customer personas as hypothetical use cases for your products or services. To clarify, we mean that you should literally write out 300 word descriptions of imaginary customers–who they are, what their needs are, and why they are likely to find your product or service offering to be the ideal solution to that need. Beyond identifying customers by what you perceive to be key demographics, this exercise should allow you to hone in on individual customer types. Create characters around these customers and do your best to put yourself in their shoes. The better you understand exactly who your customers are, the easier it will be for you to identify their needs and provide products and services that effectively meet these needs.

25. Is there a large enough market for your product or service to fuel a profitable business?

Identifying your target customers should naturally lend an answer to this subsequent question. Does the customer base that you’ve identified constitute a large enough population to support your product or service? In the section below, we’ll discuss some of the financial components of starting a business. These will make it a bit easier to address a question like this. But on its own, the purpose of this question is to determine whether there is realistically a large enough market for your offering to fuel a profitable business. Without enough prospective buyers, it won’t matter how innovative your idea is. It will still be unlikely to generate a profit.

26. How will you market yourself to your target customers?

Now that you know who your customers are, and how many of them are out there, you have to figure out how you’ll reach them. This means determining where your prospective customers hang out. Are they online, browsing store aisles, or doing a bit of both? Are they reading print ads, clicking onto products from various social media accounts, or making their purchasing decisions based on word of mouth? This offers further motivation for getting to know your intended target market on a deeper and more personal level. As an article from The Score explains, “Knowing your target audience will also help you know how to market your business. For example, younger audiences may be attracted to social media channels, such as Snapchat or Instagram, while B2B audiences may respond better to webinars and white papers. Do you want to focus on SEO and content marketing or do you want to spend time gaining reviews and word-of-mouth referrals? Before you start a business, it’s important to understand where and how you are going to market that company. The best brands in the world have figured out how to communicate their value proposition effectively.” You need to be able to draw the triangulating lines that connect your marketing strategy, your value proposition, and your customer.

27. What is your marketing budget?

On the one hand, there’s the strategy you plan to implement in order to reach your prospective customer base. On the other hand, there’s the actual amount of money that you have with which to do so. Again, we’ll address some of the financial components of your startup business in the section below. But the purpose of the question in this section is to incline you to think realistically about what it costs to reach your targets through the various channels where you are most likely to find them. Will you be budgeted for a robust marketing campaign right out of the gate, or will you opt for a soft launch while you raise additional funding? The latter option may even be preferable if you are still in the process of working out the kinks in your product or process. In other words, you’ll want to develop an initial marketing budget based both on your available resources and your readiness for an influx of new customers.

28. Are your customers local, online or both?

Speaking of new customers, where are you expecting to find them, and where are you most likely to complete transactions with these customers? Is your business a strictly online business with a national or even global customer demographic? Is your business a strictly local operation like a landscaping business, a wedding cake baker, or a dentist? If it’s the latter, your strategy for reaching customers will likely be quite different from the strategy of those in the former category. Geography matters when marketing to your customer base for a variety of reasons, including its impact on the channels you will use to reach them, the language and tone you will use to engage them, and the nature of the products and services you will make available to them. Make sure your product or service offerings, and your marketing strategy, match the practical geographical expectations of your target.

29. Are there underserved groups in this space, or gaps in the marketplace?

Have you identified a unique subset of your chosen marketplace that is not currently being reached by your anticipated competitors? This could represent the opportunity to fill a need in your space. Remember those target personas that you developed? Now let’s think of some personas that are not having their needs met in the current marketplace. Are there prospective customers who are being priced out by the cost of products and services in your industry? Are there customers who require a more specialized type of service that simply isn’t available? Is there a geographic or cultural enclave that isn’t being reached by the messaging and marketing of current competitors? Try to find gaps in the way the marketplace is being served. These gaps could represent a substantial opportunity both to address unmet customer needs and to facilitate the growth of your business. Depending on the nature of your business, carving out a specialized niche could be just as profitable as taking a lead position in the industry, writ large.

The Financial Components

30. What are the startup costs for your business idea?

Once you’re certain that there is both space for your ideas in the industry and customers to help make your idea marketable, it’s time to get down to dollars and cents. How much money do you need to get your ideas off the ground? Startup costs will usually include a variety of administrative fees for licensing, registration, permitting, zoning, etc. These costs will also include property rental or purchase, any necessary insurance coverage, contract labor, employment costs, production costs, marketing costs and more. Clearly, there’s a lot of expense that comes with the start of a new business. Make sure you have a full sense of what those costs are. Refer back to your business plan for specifics. Hopefully, those specifics will also help you pin down sources for funding, whether these startup costs come from angel investors, venture capitalists, bank lenders, or from your own pocket.

31. What does it cost to make your products or deliver your services?

In addition to start up costs, you’ll need to know the operational costs of your business before you start paying the bills. If you’re manufacturing a product, you’ll need to calculate the costs of materials, labor, and delivery on the supply chain. If you’re delivering a service, you’ll need to calculate the costs of personnel, transportation, and actual labor. Do some research on your competitors to find out what they’re spending on these line items. Before you can determine what to charge for your goods and services, you need to know what it will cost you to deliver them.

32. Are there commodities that you’ll require that come with fluctuating costs?

Of course, that is easier said than done. That’s because many of the key commodities that businesses rely upon for production or for the delivery of services can fluctuate dramatically in price. The most obvious example is gas. Countless factors can impact the price of gas from inflation and supply chain disruption to natural disasters and political unrest. Of course, these occurrences can be highly difficult to predict, which means the price of this essential commodity can be difficult to anticipate. This directly impacts businesses that rely upon gas-powered vehicles for delivery or gas powered machinery for manufacturing. And of course, this is just one example. Shifts in the cost of lumber can have rippling effects on costs for builders and contractors. Changes in the availability of corn, rice, wheat, or soy can impact prices across the food distribution and service industries. These pricing fluctuations can impact profit margins and ultimately shape the price that you pass along to consumers. These fluctuations can be quite unpredictable. As you initiate your business, take into consideration your reliance on commodities that tend to fluctuate in value. To the extent that is possible, you’ll want to prepare for these possibilities in both your budgeting and pricing structure.

33. How will you price your products or services?

Speaking of pricing structure, it’s important to establish a price point for your products and services that makes sense within the scope of your industry and the broader economy. An article from Forbes notes that pricing is a delicate balance. Forbes points out that “You don’t want to over priced, but you don’t want to price your products too low. This is where research comes in handy as you want to look at what your competitors’ price their products at. Are your items the same, more luxurious or more simple? You also want to take into consideration the packaging and postage costing as well as maintaining the business overall. Where do you fit in the market for your target consumers?” Make sure you establish a price that consumers are likely to accept, but one that also ensures the profitability of your business regardless of your operational costs and potential fluctuations in the cost of commodities.

34. What is the product life-cycle for the goods or services you plan to deliver?

Obviously, you want to provide high quality products and services. This is a great way to ensure customer loyalty. On the other hand, nothing lasts forever. Do your products have a relative expiration date? Does the impact of your services have a diminishing benefit over time? In other words, will your customers ultimately need to update or upgrade the products they’ve purchased from you? Will they need regular service visits to ensure the continued effectiveness of the services rendered? This is important to know, because the timeline from initial purchase to subsequent purchase or service visit may tell you a great deal about your company’s profitability. If the goods and services you offer do indeed have a finite lifespan, be sure you have positioned your company to provide the appropriate replacements or repairs when the time is right.

35. How will you define financial success?

We recognize that this is a fairly broad question, but it is worthwhile to identify some financial benchmarks by which to log your own successes. Before you launch your business, you should have a clear sense of the milestones that you will use to mark your progress. Will you be targeting a specific amount of annual revenue; a break even point based on your initial investment; or a certain degree of profitability? What financial achievements will you use to track your company’s progress? Identify these measures in advance so that you have some concrete financial goals to shoot for.

36. Will you be opening a separate business bank account?

This is a good idea even if you operate as a sole proprietorship. A designated business account can make it a great deal easier to conduct effective accounting, to keep your personal finances separate, and to process customer payments. Indeed, you can set your business account to feed inputs into your accounting software, to accept credit card payments, to make payments on your business credit card, and more. In the simplest terms, you really should have a separate business bank account even for the smallest and most independent of operations. It helps to keep things clear and organized while reducing your personal financial risk.

The Organization

37. What skills do you bring to the table? What skills will you need to source from others?

You’ve decided to launch your own business, so obviously you are enterprising and ambitious. But what other virtues do you bring to the table? Are you good at delegating responsibilities and communicating ideas to others? Or are you better at wheeling and dealing with other business leaders? Do you have a gift for understanding and connecting with clients or are your skill sets more technical? It’s important to identify the talents you bring to the table for a few reasons. First and foremost, you’ll want to channel your greatest strengths into helping get this company off the ground. But secondly, and just as importantly, you’ll want to identify the areas where you may not be as strong. These are areas where you might want to enlist engagement from others. If you excel at business planning but are less skilled at engaging personnel, you may wish to partner with somebody who has managerial skills. If you bring a ton of technical expertise to the table but you don’t really know how to crunch the numbers in order to turn a profit, bring in somebody with financial management experience. In short, identify the areas where you excel, and partner with those who excel in areas where you don’t.

38. Are you still planning to work your day job?

This is worth asking if only because it underscores just how much time you’ll be able to invest in launching your own company. It’s understandable that you wish (or need) to retain your paying income even as you work to get a new company off the ground. But if this is the case, you simply need to be realistic about how much time you have to invest in your new venture. Divided attention may delay or even stand in the way of establishing a successful business. Taking the leap from full time work into full startup mode can be scary, but it may also be the only way to make it really work. If you have a day job with flexibility, you may be able to do both. But if your daily work responsibilities are standing in the way of your ability to launch a new company, you may want to think very seriously about taking the full leap into your new venture, and if possible, paying yourself a salary from the startup funding or revenue generated by this business.

39. How many employees will be needed to make this business work?

Speaking of taking a salary, you may not be the only one that your new company must pay. If you are a sole proprietorship, this probably isn’t a concern for you. But most business enterprises require other people to succeed. How many people you need to succeed will depend entirely on the initial scale of your organization. To the point, an article from Forbes notes the importance of anticipating the startup scale of your organization. Realistically speaking, what are the labor requirements for making your idea into a reality? Forbes notes that you may be “starting this business solo or with a business partner, but you also want to consider how many employees you will need as the time goes on. This is important to consider if you are beginning a business with the idea that it will scale up in the future, and require a team for growth.”

40. Is your business idea scalable? Can your company grow, and if so, what will that mean?

Speaking of growth, what do you envision for the future of your company? Are you providing a product that can be manufactured and distributed en masse? Are you offering a service that can be made widely accessible? How realistic is it that your company could expand regionally, nationally, or even globally? And if it did, what would that mean for your overhead costs, the size of your labor pool, and the potential for profitability? While all of these ambitions may be well in the future, you’ll want to anticipate these possibilities even now, at the outset of your business venture. Are these ambitions possible? Does your business model allow for this level of growth? And if not, what must you do to make this type of growth possible? Take steps now to analyze and recognize the potential scalability of your business model. This consideration may prevent you from suddenly realizing at some future date that you’ve reached the limits of your company’s ability to grow.

41. What logistical challenges will you have to address?

While there is a lot that you can control as a business entrepreneur, you must also rely on the competence of others to carry out your work. This may include mail sorters, parcel delivery services, truck driving fleets, port workers and countless others in the supply chain who will contribute to the timeliness of your shipments. Whether you’re waiting for incoming supplies or banking on the expedient shipment of outgoing products, there are logistical factors that will contribute directly to your costs of operation and your organizational efficiency. Make sure you have a full understanding of these logistical factors, and that you’re prepared to manage the challenges that these factors can sometimes impose on your ability to serve customers effectively.

42. Are there political externalities to consider?

In addition to logistical concerns, there are some businesses that are directly at the mercy of external political factors. Are you entering into the type of business that relies on government funding, that requires the efforts of lobbyists, or that touches upon an area that is considered divisive in American politics? Some products and services may even fluctuate in popularity based on their political and cultural appeal. Does your business idea depend on the political dominance of one party or another? Is your business model vulnerable to fluctuations in prevailing political ideals? If this is the case, you should be aware of the potential ebbs and flows this could create in your company’s popularity and relevance. These factors could consequently cause ongoing volatility in your company’s bottom line.

43. Will it be possible to delegate leadership responsibilities to others?

What role do you see for yourself in this company? Will you be a hands-on, day-to-day business manager? Or are you more likely to delegate responsibilities and take a hands off approach? The answer to this question should depend on your skill sets. Some business managers prefer to oversee every detail of their company’s operations. But speaking with candor, the most successful business owners are those that can effectively hand business leadership responsibilities over to trusted employees. In an ideal world, you would be able to delegate most daily management tasks to trusted personnel in your organization.

44. Do you plan to exit your business at any time?

This may seem like kind of a funny question to ask when you’re literally at the very start of running your own business. But it may be valuable to consider this question before you get your business off the ground. Do you envision this as a family company, one that you will ultimately pass on to the next generation? Or is it merely a profitable idea that you would ultimately sell to the highest bidder? In short, do you see yourself running this company for the rest of your working life, or would you be just as happy (if not happier) to create a valuable enterprise that ultimately sells to a bigger company for a big price tag? If you chose the latter, we can’t say we blame you.

45. What is your company’s identity, and how does this connect to your target market?

Your brand refers to the way you present yourself. So how do you intend to present your company? This should be a function of your target market. If you’re pursuing a younger demographic, you’ll want to establish an identity that is at once informal and authentic. If you’re pursuing a demographic of business professionals, you’ll want to establish an identity that is polished and articulate. Such is to say that your intended audience will play a big role in defining your brand. Make sure you establish an identity–in your imagery, marketing material, and personnel–that reflects the desires of your target demographic.

46. What are your company values?

Your brand is more than just an abstract vibe. It’s also the foundation underlying your company’s values–the things that your organization stands for. Identify those values from the start and it can help you to better understand your own brand. Is your company focused on affordability, accessibility and inclusion? Do your values emphasize activism in the face of global climate change? Or are your company’s values simply focused on creating profits for your shareholders? Whatever demographics and priorities you serve, take time to articulate your company values now. This may help to create a brand that truly resonates with your target audience over the long haul.

47. Does your company have a mission and vision?

Your values are an indication of what your company stands for. By contrast, your mission and vision speak to what your company actually intends to do. What do you hope to accomplish as an organization? Is it innovation, equality, environmental justice, social progress, or technological advancement, just to name a few of the infinite possible answers to that question? Part of establishing your brand is articulating the mission that your company will actively pursue and the vision that your company will hold as its grandest ambition.

48. How will you convey this brand?

Now that you’ve pinned down your brand, how can you be sure that others will perceive the image that you’re putting out there? Do you have plans to build a website that captures your company’s identity, tone and vibe? Do you have a way to source a logo, color palette, and iconography that match your organization’s culture, energy, and intent? In most cases, these are tasks that you will want to outsource to qualified third-party providers. But you’ll need to establish your own clear sense of these things first. Take time to think about the aesthetic that you believe will best convey your company’s identity and find artists, copywriters and web designers who will work closely with you to capture this aesthetic

49. Do you need any special patents or trademark copyrights?

In addition to working with artists and web designers to create your company’s iconography, you’ll want to work with lawyers to ensure that this ephemera is protected from intellectual property theft. That’s why, according to our own Ultimate Guide to Starting a Business, “Many companies apply for trademarks to protect the unique components of their company. Trademarks can cover a specific brand, a logo, a catchphrase, or product design. Or anything else that sets your business apart from your competitors.” Make sure you apply for these protections in the early going. When your company achieves massive success, you’ll be glad that you secured your images and icons against misuse.

50. Does your company have a story to tell?

Part of your brand identity is your personal history, the history of your idea, and the history of the organization you’ve built to deliver that idea to your customers. Find a compelling way to tell this story in your company’s literature, on your website, and through your marketing materials. Your company’s story can help to personalize the purchasing experience for your customers, to make your brand more relatable, and to ultimately help you establish an identity with lasting commercial impact.

Looking for even more detail on how to succeed at business? Our Ultimate Guide to Starting a Business includes step by step details on how to create a business plan, a rundown of special business permits and licenses, and tons of other actionable tips on getting your business venture off the ground. 

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10 Questions Your Business Plan Should Answer

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One reason people are sometimes intimidated by the prospect of writing a business plan is simple: They don't have a clue what a plan should contain. The good news is that there are no hard and fast rules. In fact, no two plans look exactly alike. For a sole proprietor, a business plan may run a couple of pages. A business plan for a large company plotting a turnaround can take up a hundred or more pages, with plenty of appendices. But to be useful and effective, all business plans should provide answers to these ten questions.

What business are you in?

The question sounds easy enough. But for some businesses, the answer isn't as straightforward as you may think. The best way to zero in on exactly what business you're in is by taking time to craft a mission and vision statement.

Consider Amazon. It began as an online bookstore. Then it morphed into a vast online discount retailer, selling everything from food to clothing. A few years ago Amazon turned into a publisher. Now, with the advent of cloud storage, it also provides a place for people to store their books and music.

Even small companies often have to give some thought to defining what their business is. Take the example of a garden maintenance company that found itself gaining a reputation for turning bland yards into showpieces. More and more people began to turn to the company not just to maintain their gardens but also to design them. The company began to realize that it could be much more successful — and charge a whole lot more — if it marketed itself as a garden design company.

How will the business make money?

You may think this would be the most elementary of all questions. But in reality, many start-up enterprises fail to formulate a business model — a fancy term that means how they'll make money. There was even a time, in the early days of the online world, when people dismissed the very notion of a business model as something from the old economy. If you build a website that's cool enough, the thinking went, success will follow. Well, it didn't always. A lot of clever websites found themselves scrambling for a way to pay the bills.

Even many conventional businesses need to think about their business model to ensure success. A hair salon may make some of its money from cutting, shampooing, and styling hair, for example, but it may also find that it can substantially boost the bottom line by selling hair care products. Thinking through all the different ways that your business can make money is crucial to success.

What does your business need to get off the ground?

Start-ups require a lot of enthusiasm and hard work, and often plenty of cold cash. One of the biggest blunders new companies make is not thinking ahead about how much money they'll need to get up and running. When the money runs out before the doors open, the best business idea in the world isn't going to spell success.

A good business plan must take into account everything that is required to start — and how much it's likely to cost. Building a little cushion into those estimates is always wise.

What is the operating budget?

The financial section of your business plan also must address how much it will cost you to run your business, month by month, and how much you need to earn to meet your expenses and make a profit. Chances are you'll need to make a bunch of decision up-front before you come up with a reliable number — decisions about where you'll do business, what kinds of equipment and staff you'll need, a marketing budget, and so on.

You'll then need to think about how much you'll charge for your product and service and how much you can expect to take in month by month. Needless to say, the more carefully you think through all these questions in advance, the better prepared you'll be.

Who are your customers?

Build a better mousetrap, the saying goes, and the world will beat a path to your door. Maybe. But to build a better mousetrap, you need to know what customers want and how much they're willing to spend.

The more you know about your prospective customers, the more successful you're likely to be. Take the time to look at what your customers like and don't like. The Internet has made it easier to understand customers. All you have to do is read through reviews on Amazon or Yelp to know what people are raving about and what they're dissing, covering a wide range of products and services. But old-fashioned tools are also effective, including customer surveys, focus groups, and simply observing customer behavior.

How will you reach your customers?

You can reach your customers these days in more ways than ever before, ranging from billboards, shop signs, newspaper ads, websites, e-newsletters, tweets, mass mailings, Facebook posts, and more. Your business plan should spell out how you intend to reach your customers and maintain an ongoing relationship with them.

Social media has created brand new ways to engage in two-way exchanges with your customers. Digital communications have greatly improved customer service for many businesses. But be advised that the Internet has also raised expectations about what great service should be. Customers are savvier than ever, and more demanding.

What sets you apart from the competition?

If you've invented something unlike anything the world has ever seen before, congratulations. You're in rare company. If you're like most businesses, you compete in a marketplace with other players. To succeed, you have to give customers good reasons to choose you over your competitors. An effective business plan should spell out those reasons and develop strategies to make the most of them.

To get started, find out all you can about your competitors and their strengths and weaknesses. Then consider how the business you're planning stacks up. Typically, businesses compete on the basis of price, quality, service, and features. But a company's image can also be part of its competitive advantage. For example, people buy Newman's Own foods not only because the quality is good and the price is right but also because of the company's image of doing good by donating a chunk of its profits to good causes. In a similar way, other companies attract customers by promoting their products or services on the basis of environmental protection.

What are your strengths and weaknesses?

This question may well be the most important one you ponder as you develop your business plan. Most people have a vague sense of what they do well and what they could do better. If you're part of an organization, you can recognize some of its strengths and weaknesses. But there's a lot that people don't face up to. The process of writing a business plan gives you an opportunity to be far more honest and thorough in your assessment. A formal SWOT analysis grid can allow you to measure your strengths and weaknesses against the opportunities and threats in your business environment.

This question is so important because business success really depends on leveraging your strengths and addressing your weaknesses. For instance, when an orthopedic institute in southern California noticed that its patient satisfaction scores were slipping, the doctors were puzzled. The institute's complication rates were very low. The length of time patients spent in the hospital was below the national average. The medical staff, it seemed, were doing a great job. But in surveys, many patients complained that the care felt impersonal and rushed. To remedy the situation, the institute hired social workers who met with patients when they were admitted and again before discharge to talk over their concerns. The institute also scheduled a follow-up call between surgeon and patient a month after discharge. A year later, patient satisfaction scores were back on top.

What are the biggest challenges you face?

Every business faces challenges, especially in competitive markets or with technological change. Your business plan should describe in detail the particular challenges you face and how you plan to overcome them. The challenges can be part of the business environment you compete in — a crowded field of competitors or regulatory uncertainties, for example. But some of the challenges you face are also likely to be related specifically to your company, such as hiring and holding on to skilled employees, for instance, or responding quickly to changes in the marketplace.

How will you measure success?

The simple answer to this question is money. Make enough money, and any business is a success. But in fact, for most enterprises, the answer is more complex. The most obvious example is a not-for-profit company. Consider a nonprofit community orchestra. Its success is measured in terms of filling seats for its concerts and providing local musicians a chance to play. Or consider a food bank. It spells success in terms of reaching as many people in need and giving them nutritious food as possible.

Your business plan should acknowledge all the ways you plan to measure your success. Your financial section will look at dollars and cents. Your goals and objectives will mark off specific mileposts that will help you chart your progress. Your mission and value statements will serve as a guide to the less tangible items that spell success for you.

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10 Questions to Ask if You Want to Create a Winning Business Plan Throw out everything you know about a business plan. These are the questions you need to ask to sell your idea to investors.

By Arlene Weintraub Aug 12, 2013

Opinions expressed by Entrepreneur contributors are their own.

The stodgy business plan--that multipage printed document that entrepreneurs used to hand out at meetings with venture capitalists--has gone the way of the typewriter and Rolodex. These days, entrepreneurs are expected to lay out their strategies in slick Power Point presentations, complete with colorful pictures and informative charts.

But while it's true that the format of the business plan has changed, the substance most certainly hasn't. If you're headed out to raise capital for your company, you'll still need to address key issues about the size of your market, the experience of your team, and your long-term financial goals. In the wake of the financial crisis, persuading potential financiers that your plan has legs will be especially challenging.

Here are the key questions you should ask yourself before you fire up Power Point and start preparing your slides.

1. Have I proven that I'm filling an unmet need in the market? As the economy still struggles to turn around, entrepreneurs are under pressure to gauge the strength of their market--in detail--before they go out and raise capital. Try test marketing your product on a small scale so you can realistically forecast how much you can sell in the future, suggests Edward Hess, professor and Batten Executive-in-Residence at the University of Virginia Darden School of Business.

"Entrepreneurial funding is moving away from formal business plans to having to prove that customers are actually going to buy what you're trying to sell," Hess says.

2. How will I acquire and retain customers? You'll also need to prove that your idea isn't a fad.

"Understanding how customers are going to be found, acquired and retained is critical," says Alison Berkley Wagonfeld, operating partner for Emergence Capital Markets in San Mateo, Calif. "Some companies might say, "We're going to buy search words,' but once they get somebody to their website, how are they going to sell them a product?"

3. Why am I better than the competition, both current and future? If you have direct competitors, you'll need to devote several slides to depicting exactly how you plan to differentiate yourself. If you have no competitors, you need to explain that, too, Wagonfeld says.

"It's always great to think you have no competitors, but the flipside to that is why has no one else found this opportunity?" Wagonfeld says. "You may have a different expertise or a unique technology," but you have to explain why you think you can retain that competitive advantage.

4. What's the story behind my financial forecasts? One common mistake entrepreneurs make in their business plans is to project that they will capture a certain percentage of the overall market for their product without fully explaining how they intend to do that, says Mark Steranka, director of planning and policy for Moss Adams' Consulting Group in Seattle.

"You can't just play a numbers game," Steranka says. "What will the key decisions be along the way? What will the key strategies be? You need to do a stellar job of really explaining how you're going to get from point A to point B."

5. What elements of this plan can I depict visually? The rise of Power Point as the format of choice is forcing entrepreneurs to make their pitches with fewer words and more pictures. Some parts of your business easily lend themselves to graphic presentations, such as financial forecasts that can be shown in bar charts. But you might also consider using graphics, photos, and illustrations to demonstrate how your product works or how it differs from the competition.

6. Should I recruit a few key advisors? Bryan Pearce, venture capital advisory group leader for Ernst & Young in Boston, says every startup should assemble an advisory board--a small group of industry leaders who can complement your skill sets and help you formulate your plan.

"An advisory board doesn't carry the legal weight of a formal board of directors, but it can be very helpful to the founding team in advising them on how to get the company going," Pearce says. The makeup of your advisory board should be included in your business plan, too. "If good people are willing to lend their names and help to get you going that speaks volumes about the potential of the business idea."

7. How am I going to spend my investors' money? With the economy still sputtering, potential investors are going to want details about how you plan to stretch their dollars, Pearce says. Emphasize your strategy for holding down your cash-burn rate, and spell out exactly what you expect your costs to be for the first year or two.

8. Does my staffing fit the current state of my business? Many entrepreneurs make the mistake of thinking they need to have all the key managers in place before they go out and raise funding, but that's not necessarily true. If your product is in the prototype phase, for example, you don't need a director of sales and a full sales force just yet. You should describe your plans for hiring those people, and include them in your cost estimates, but you'll want to show that you're taking a conservative approach with your funding and not over-staffing your company beyond your current operating needs.

9. What's the exit plan for the business? Potential buyers will want to know how they're going to earn a return on their investment. If you hope to take your company public someday, your business plan should point to examples of other companies in your industry that have done so successfully.

If you think your company is a good candidate for an acquisition, try to strike up partnerships with potential acquirers, and include those names in your business plan, Pearce advises. "It's always good to have an understanding of who potential buyers might be, and to show that you're starting to create relationships with them," he says.

10. What is my personal exit plan? If you're a 45-year-old founder with a dream of retiring at 55, don't be embarrassed to reveal that in your business plan. Potential investors will want to know that you've defined your personal goals and aligned your company with them, Steranka says. For example, if you don't plan to stay with the business for the long haul, your business plan should include a succession strategy--a specific strategy for developing talent within your organization, so the transition to a new leader is seamless.

"Investors want to know the truth," Steranka says. "While transparency up-front could turn away a potential investor, it's going to attract the right investor."

Arlene Weintraub has over fifteen years of experience writing about health care, pharmaceuticals and biotechnology and the author of a book on the anti-aging industry, Selling the Fountain of Youth (Basic Books, 2010).She has been published in USA Today, US News & World Report, Technology Review , and other media outlets. She was previously a senior health writer for BusinessWeek .

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What is you company

Why do customers need your product or service?

What is your business concept or business model?

What are the conditions and overview of your industry?

Who is your target market / customer?

Who is your competition ?

Is your competition local or national?

Are there many or few competitors?

What is your Marketing Plan?

Describe your target market.

What is your product strategy?

What is your pricing strategy?

What is your distribution strategy?

How will you advertise or promote your product or service?

What is your sales forecast?

How will your company operate?

Location and facilities

How will you grow your business?

Development strategy

Who is the Management Team?

What risks does your business face?

Risks from competitors

Risks from changes in the marketplace or economy

Changing consumer needs or tastes

What type of financing and how much will you need?

Venture capital

What is your financial plan?

Gross and operating margins

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6 Questions to Ask Before Starting a Business

• 14 Jul 2020

If you’re considering starting your own business, you’re not alone. Between 2020 and 2021, more than 838,000 new businesses were founded in the United States.

Being an entrepreneur has many perks, such as setting your own hours, the flexibility of where you work, and the satisfaction of building something from the ground up. Yet, there are also some drawbacks as the chances of success aren't guaranteed. Half of all startups fail within five years of being incorporated.

Entrepreneurship is the pursuit of opportunity beyond currently controlled resources. When you hear the word “entrepreneur,” you might think of Apple’s Steve Jobs, Microsoft’s Bill Gates, or OWN’s Oprah Winfrey, who each saw a need in the market and filled it with an original product or delivery system. Their respective businesses have not only been successful, but changed the landscape of their respective fields—from personal electronics to digital media. Each took risks and were met with immense rewards, but not all entrepreneurs are so lucky.

So, what does it take to be a successful entrepreneur ? In the online course Entrepreneurship Essentials , Harvard Business School Professor William Sahlman warns against falling back on stereotypes, noting that great entrepreneurs can come from a diverse range of demographics.

Although there’s no single characteristic that makes a perfect entrepreneur, some common traits of successful ones include curiosity, adaptability, decisiveness, and innovation.

Aspiring entrepreneurs who possess these characteristics should take note of their personal goals and create an effective business plan to achieve them. This type of foresight is incredibly helpful when launching any type of business.

What Makes A Successful Business?

Behind every successful business is an idea that solves a problem. This means that from the earliest stages of the process, entrepreneurs must be aware of their target audience and the needs the product or service will fulfill. This takes the guesswork out of future marketing strategies since the mission of the business is clearly defined.

Another element to a successful startup is the support of experienced business counselors. Starting a new business is no easy feat, which means guidance from skilled individuals who have launched and run companies can be invaluable. You can seek out these professionals through various networking opportunities, such as entrepreneurship counseling or the HBS Online Community , or find a mentor within your existing professional network who can give you insight into the market.

It’s also crucial to choose your business partners wisely. Find individuals who share the same vision and possess strengths that complement your weaknesses. It’s not enough to be friends with your business partners; you must define the expectations you have as a team from the start and be equipped to solve disagreements in a productive way. One way to lay the foundation for a strong business partnership is by ensuring all parties have a clear understanding of what starting a business requires.

Is starting a business the right choice for you? First, be sure to ask yourself these initial questions.

Access your free e-book today.

Questions to Ask When Starting a Business

1. is now the right time to start a business.

Your idea may never take off if you try to start your business at an inopportune time. Are you currently in a position to pursue entrepreneurship? Consider your relationships, financial wellbeing, and physical health. For instance, if you recently welcomed a baby into your family, you may not have enough time and energy to dedicate to the growth of your business.

On the flip side, perhaps you’ve recently been laid off from your role in corporate finance. This turn of events could spark an ambition that can be poured into starting your new venture, backed by your professional experience.

It’s also important to consider if the timing is right in the broader economy and the specific market you want to enter. You should ensure your offering meets a current need.

For instance, take the coronavirus (COVID-19) pandemic and the preparation to reopen offices. These unique circumstances have generated a need for companies to prevent the spread of germs and enforce social distancing, while allowing employees to work alongside one another. It’s an opportune time for someone who, for example, wants to produce and sell transparent cubicle partitions, because that product fills a market need.

2. Do You Have a Business Idea, and Is That Idea an Opportunity?

When starting your own business, you need to know what you plan to sell. If you haven’t fleshed out those details yet, brainstorm using the following prompts:

• Why does it take so long to ____?
• Why does ____ cost so much?
• Can I deliver ____ with a new business model?
• What can I change about ____ to improve it?

Your idea doesn’t need to be a new invention—it simply needs to fill an unmet need. If you have an idea for an original product, that’s great, but an improvement to an existing product’s cost, production, functionality, or accessibility can go a long way. Take Uber, for instance: Uber didn’t invent the idea of ride-sharing (taxis have been around since 1897 ), but it delivers the service in a new, innovative way.

You should also determine whether your business idea is an opportunity.

In Entrepreneurship Essentials , opportunity is defined as "a proposed venture to sell a product or service for which customers are willing to pay more than the required investments and operating costs." In other words, people must be willing to pay more for your offering than you’ll spend creating it.

To find out if your idea is an opportunity, first come up with a hypothesis. For instance, “I hypothesize that businesses would be willing to pay $150 per transparent cubicle partition.”

Next, test your hypothesis by conducting market research. Sahlman recommends reaching out to strangers from your target market segment, rather than friends, family, and colleagues, who may sing false praises. The feedback you receive can inform if your hypothesis was correct, or whether you need to test other hypotheses.

3. Are You Prepared to Pivot and Adapt?

Entrepreneurship is an iterative process. If you know that adapting to new information and pivoting when original ideas fall flat aren’t your strengths, develop those abilities before becoming an entrepreneur.

With your earlier hypothesis in mind, say your research tells you 75 percent of people you interviewed aren’t willing to pay $150 per transparent cubicle partition. Given this information, you need to adapt.

You test further hypotheses and discover the majority of your target segment is willing to pay the original $150 if the transparent cubicle partitions are both high-quality and easy to install and remove. This leads to the development of a new prototype, reassessment of the cost to manufacture, and another round of hypothesis testing.

The ability to adapt and frequently pivot, especially in the early stages of your business, is essential.

Related: Tips for Scaling Your Business

4. Do You Have a Strong Team, or the Ability to Form One?

No successful entrepreneur got to where they are by themselves.

“All great companies, even those with iconic entrepreneurs, had many other people who were involved and, without whom, the company might not have made it so big,” Sahlman says.

In Entrepreneurship Essentials , Apple is used as an example to illustrate the power of a team on a growing business.

“Steve Wozniak was the engineering genius behind the company’s early products,” Sahlman says.

Shortly after it was incorporated, Mike Markkula and Mike Scott joined as seasoned executives who proved themselves essential to the company’s growth. Steve Jobs, who had previously been forced out of the company, returned to Apple when it was on the verge of failure and revitalized its products. Without each of them, and countless others on their teams, Apple would not be where it is today.

If you decide to start a business, keep in mind that successful business owners know when to ask for help and delegate tasks. Whether that means starting your business with a partner or two, building a strong team as you grow, or simply accepting any help and advice you can, know that your potential success relies on the strength of the people around you.

Related: 10 Tips to Help You Boost Team Performance

5. Are You Prepared for the Possibility of Failure?

Entrepreneurs must be prepared for the possibility of failure when starting a business. In Entrepreneurship Essentials , Sahlman notes that 70 percent of businesses survive for two years, 50 percent last five years, and only 25 percent make it 15 years.

“Though every entrepreneur imagines success, they must act with the full knowledge that the odds are against them,” Sahlman says.

The very real possibility that your business may not survive is something you need to come to terms with before pursuing entrepreneurship, and you should have a plan for that scenario.

6. Why Do You Want to Start a Business?

As you consider starting a business, continually return to the most basic question: Why?

While only you can answer this question, understanding the relationship between risk and reward can help illuminate your motivations.

It’s the point where the potential of reward—whether that be pursuing your passion, becoming the next big brand, or filling the market’s need—outweighs the fear of risk that your entrepreneurial journey begins.

Ask yourself what you hope to gain from starting a business, and list the risks you anticipate. If the pull of potential rewards outweighs your fear of risks, it’s a good sign you’re ready to be an entrepreneur.

Are You Ready To Start A Business?

Asking yourself these questions can shed light on whether starting a business is a path you want to pursue. It can be a lot of work and come with inherent risk, but armed with informed decision-making , an innovative concept, a solid team, and a bit of luck, starting your own business can be an extremely fulfilling experience.

Are you looking to turn an idea into a viable venture? Explore our four-week online course Entrepreneurship Essentials and our other entrepreneurship and innovation courses to learn to speak the language of the startup world. If you aren't sure which course is the right fit, download our free course flowchart to determine which best aligns with your goals.

This post was updated on August 9, 2022. It was originally published on July 14, 2020.

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30 Questions to Ask Entrepreneurs (So You Can Become One)

By Hannah Donor • Mar 9, 2023

The beginning stages of entrepreneurship can feel overwhelming. It’s hard to know exactly what you don’t know about starting a business. Although internet research can be immensely helpful, it cannot speak to personal experience. By connecting with a successful entrepreneur, you can benefit from their wisdom and gain knowledge that may not be commonly available online, preparing you to start your own business in a completely different way.

Why You Should Interview an Entrepreneur

When starting a small business, it’s important to remember that you’re not alone. Running a business as a solo act is isolating by nature, so forming a network of support from the start can bolster your confidence and help you strategize for more effective growth and sustainable success.

Whether you’ve been in business for a while and are looking for advice on scaling (growing), or are brand new to entrepreneurship and need to know what things to do before starting a business, interviewing someone with real entrepreneurial experience will go a long way in preparing you to enter the field.

Best Interview Questions to Ask an Entrepreneur

1. why did you decide to start your own business.

Every business owner has a “why” – the reason they chose the unconventional route of entrepreneurship as opposed to a corporate career. Understanding their reason for choosing the business owner path can help you to understand what motivated their success and discover your own reason (or reasons).

2. What advice would you give to someone just starting their own business?

This is the most obvious question you should ask, but also one of the most important! Every business owner has gone through the trying and risky experience of being a new business owner, and every one of them will have direct experience with what worked and what didn’t. You’re meeting with this entrepreneur to get their advice, so don’t be afraid to ask for it!

3. How do you deal with fear and doubt?

Even someone as prolific as Maya Angelou experienced the phenomenon known as imposter’s syndrome , once confessing, “I have written 11 books, but each time I think, ‘Uh-oh, they’re going to find out now.’ I’ve run a game on everybody, and they’re going to find me out.” By asking your interviewee how they deal with self-doubt as an entrepreneur, you’ll gain strategies for conquering fears that will inevitably come up throughout your own venture into business ownership.

4. What routines do you follow each day?

Success is in the details, and most accomplished people follow strict routines and daily habits to keep their busy days running smoothly. This can be as simple as setting an alarm and always getting up when it goes off, eating the same breakfast each morning, or even having multiples of the same outfit so they don’t have to think about what to wear each day.

5. Where do you see your business in five years? Ten?

No entrepreneur is ever done growing their business – it’s an ongoing journey with ever-changing goals and aspirations. Asking the entrepreneur you’re interviewing what their vision for the future is will inspire you to dream big and never stop pursuing success. It will also give you an idea of future milestones you can pursue in your own business.

Recent Articles That Might Interest You:

• 6 Reasons Why Small Businesses Should Keep Personal And Business Finances Separate July 25, 2024
• How Much to Set Aside for Small Business Taxes July 17, 2024

6. How does your business look different now vs. when you first started?

Similar to asking for advice on just starting out, ask your interviewee to reflect on how their business has grown and shifted over the years. Are they where they expected to be? Did they pivot a completely different direction than originally planned? How does where they are now compare to where they expected to be at this time in their business?

7. How do you set your business apart from others in your industry?

Small businesses require a special twist that makes them different. This may be a unique spin on their product or service, or it may come down to well-crafted branding . Find out how your fellow entrepreneur has distinguished themself from the competition and brainstorm how you can do the same.

8. How did you market your business when it was brand new?

Without the reputation or booming revenue of a larger business, you’ll need to develop strategies for marketing your business and building a loyal audience from scratch. Every business owner has to tackle this at the start, so you’ll definitely want to find out how the person you’re interviewing did this. How did they leverage networking or advertising or social media to start connecting with potential investors or customers?

9. What is the hardest part of being an entrepreneur?

Running your own business won’t always be easy. Like any job, no one loves it all the time. Starting your own business is going to be difficult. It’s going to take a lot of time and determination to make it a success, but knowing what hurdles you may encounter will make it easier to overcome them.

10. What is your favorite part of being an entrepreneur?

Follow up preparing for the worst by hoping for the best! Find out what your interviewee truly loves about the entrepreneurial path. Why are they glad they chose to start their own business? What makes it fun or exciting? These joys are what you will cling to when times get tough.

11. What qualities do you think every entrepreneur should possess?

Ask them what makes a good entrepreneur, but don’t be downhearted if you don’t possess those qualities! Everyone is different and thus approaches entrepreneurship differently, so you may just not fit the mold they would expect. Nevertheless, this is an important question to ask. It can affirm the qualities you do possess and give you ideas of how you can form new habits and cultivate the qualities of a successful entrepreneur.

12. How have you grown personally from becoming an entrepreneur?

Entrepreneurship is extremely personal. Your business is completely your own, so it’s impossible to separate it from yourself as you might be able to with a standard employment situation. As such, starting a business will inevitably result in growth and change in you personally. By asking for stories of personal growth from a successful entrepreneur, you can get the inside scoop on how you should seek to grow personally.

13. What have been some of your biggest learning experiences in running a business?

Failures are opportunities to learn and do better next time, and no business is without their fair share of mistakes and failures. Although you will likely find your own mistakes to make, you can avoid some of them by asking an entrepreneur what failures they’ve learned from over the years.

14. What do you look for when outsourcing or hiring?

When your business outgrows what you can accomplish as a solopreneur, you’ll need to consider hiring employees or outsourcing work to contractors and freelancers . Ask an entrepreneur who has done this before what qualities they look for in potential hires to prepare you for when it’s time to find the right person to further your business’s success.

15. What will you never compromise on with your business?

Whether it be your personal values or your business ethics, you will face situations as a business owner that may require compromise. Decide what your non-negotiables are so you will not compromise yourself or your business from the get-go. Learning what other entrepreneurs won’t compromise on can help you figure out what matters most to you.

Fun Questions to Ask an Entrepreneur:

• Who is your biggest role model?
• How do you define success ?
• What makes a good leader?
• At what point did you look at your business and consider it a success?
• What would you change about your business journey if you could go back?

Financial Questions to Ask an Entrepreneur

• How did you raise funding or financially prepare for your business?
• Any advice about setting up a business in terms of legal/accounting?
• Should I get an LLC before starting a business?
• How do you plan financially for your business’s future?
• Have you ever taken out a business loan ? Would you recommend it?

Bad Questions to Ask an Entrepreneur

• What do you think of my business?
• Do you think my business will fail?
• May I pick your brain on something?
• Mind if I copy your idea?
• How can I make money as fast as possible with my business?

How to Find an Entrepreneur to Interview

Finding a local business owner to interview is the ideal scenario so you can connect in person and form an ongoing relationship. Talk to your local small business development center to inquire about any business owners they would recommend in your area. They’ll also have a lot of resources for helping you get started and to make sure your business is legally above board.

Once you connect with an entrepreneur who has enough experience under their belt to mentor and support your business journey, set up a time to meet, and print a copy of these entrepreneur interview questions to take with you.

Hannah Donor is a freelance copywriter and social media strategist with 5+ years of experience helping small businesses authentically curate the written word to reach and inspire their target market.

By Hannah Donor • Apr 4, 2023

By Hannah Donor • Feb 26, 2023

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10 Sample Answers to “Where Do You See Yourself in 5 Years?”

Ever wondered how to ace the ‘Where do you see yourself in 5 years?’ question in job interviews?

At MatchBuilt, we’ve seen over 70% of employers ask this, making it a crucial pivot point for your career narrative. It’s not just about ambition; it’s a litmus test for your alignment with the company’s vision.

In this post, we’ll unlock the secrets behind this question, drawing on insights from top industry recruiters. Expect to find expertly crafted sample answers tailored to various career paths, equipping you with the right tools to articulate your future goals in sync with potential employers. Let’s dive in and transform your interview responses into compelling career stories.

Why Employers Ask This Question and What They Are Looking For

Unraveling the intent behind the classic interview question, ‘Where do you see yourself in 5 years?’, reveals much about an employer’s priorities. It’s not just a query; it’s a strategic probe into your career ambitions and fit with the company’s future.

Here, employers are gauging your long-term vision, seeking signs of ambition, motivation, and dedication to career growth.

A well-crafted answer showcasing your alignment with the company’s values and objectives isn’t just informative—it’s a testament to your commitment and potential growth within the organization. Let’s dive into how a strategic response can significantly impact your career trajectory.

How To Answer ‘Where Do You See Yourself in 5 Years?’

Now that we grasp the reasons behind the question, “Where do you see yourself in 5 years?” and what employers are seeking in your response, let’s delve into crafting a compelling answer. Follow these clear and direct steps to excel in your response:

• Be Honest and Realistic: When answering this question, be honest and realistic about your career goals and aspirations . Avoid being vague or unrealistic, as this can give the impression that you haven’t thought much about your future plans.
• Show Your Ambition: Employers seek ambitious and motivated candidates to grow within the company. Show your ambition by sharing your long-term career goals and how they align with the company’s mission and values.
• Highlight Your Skills: Take the opportunity to showcase your skills and how you plan to develop them further. This demonstrates your commitment to your career growth and potential value to the company.
• Be Flexible: While having a clear vision for your future is important, being flexible and adaptable is also essential. Show that you are open to new opportunities and challenges within the company and are willing to adjust your plans if necessary.

When answering this question, avoiding being vague or unrealistic is essential. For example, saying that you see yourself as the company’s CEO within five years may be unrealistic and may not align with the company’s needs. Instead, focus on realistic and achievable goals that demonstrate your ambition and commitment to your career growth within the company.

By following these simple steps, you can provide a thoughtful and strategic answer that impresses your interviewer and showcases your potential as a candidate.

Avoid Common Mistakes When Discussing Your 5-Year Vision

When answering the question, “Where do you see yourself in 5 years?” it’s important to avoid common mistakes that could send red flags to the hiring manager and hinder your chances of landing your dream job. Here are some tips on how to avoid these mistakes:

• Don’t be too vague: Avoid giving generic or unclear answers that don’t align with your career aspirations. For example, saying that you see yourself “growing with the company” may not demonstrate enough ambition or a clear plan for your long-term career goals.
• Don’t be too unrealistic: While showcasing your ambition and career growth aspirations is important, keeping them realistic is equally important. Saying that you want to be the company’s CEO within five years while starting at an entry-level position may come across as unrealistic.
• Don’t be too short-sighted: Employers are looking for candidates with a long-term vision for their career growth, not just short-term goals. Ensure your answer includes how you plan to develop your skills and progress in your career beyond the five-year mark.
• Don’t be too focused on the specific position: While showing enthusiasm for the role you’re interviewing for is excellent, showcasing your broader career goals and aspirations is vital. Don’t limit yourself to just one specific position within the company.
• Don’t give the same example answer as everyone else: Employers have repeatedly heard the same “example answers” to this common job interview question. It’s important to stand out by providing a unique and personalized response that showcases your strengths and aspirations.

By avoiding these common mistakes, you can correctly answer the question “Where do you see yourself in 5 years?” and increase your chances of receiving a job offer. It’s a great way to show your ambition and commitment to long-term career growth while demonstrating that you are a good fit for the company.

Now that you’ve learned what to avoid when answering ‘Where do you see yourself in 5 years?’, let’s take it a step further. Below is a special video to visually guide you through the nuances of crafting an impactful answer. This video will illustrate, with real examples, how to articulate your 5-year vision effectively, ensuring you stand out in your interview. Get ready to transform your answer from good to exceptional, and confidently express your career aspirations.

10 Example Answers to “Where Do You See Yourself in 5 Years?”

Dive into the heart of your next interview with our curated selection of ten sample answers to the pivotal question, ‘Where do you see yourself in 5 years?’ This section is crafted to arm you with strategies that not only answer the question but also align your ambitions with the company’s vision.

From aspiring leaders to technical experts, each example is tailored to showcase different career paths and goals. Let’s enhance your interview preparation and ensure you leave a memorable impression, well-equipped to articulate your future plans with confidence.

Sample Answer 1: Career Growth

In five years, I see myself as an integral part of the company’s vision, contributing to its growth and success. As the company expands into new markets and adopts new technologies, I would love to take on more responsibilities and advance within my role . To achieve this, I plan to proactively seek out professional development opportunities and mentorship from senior team members. I also aim to leverage my skills and experience to support the company’s goals and work collaboratively with my colleagues towards achieving shared objectives.

The response reflects the candidate’s eagerness to advance their company career and unwavering dedication to growth. It exhibits a thorough understanding of the company’s objectives and reveals the candidate’s determination to succeed through proactivity. By prioritizing their professional progression and seeking opportunities to hone their skills, the candidate aligns with the qualities that employers look for in a driven and committed candidate.

Sample Answer 2: Leadership Development

In the next five years, I envision myself growing within the company by taking on new challenges and expanding my skill set. As I understand from my research, the company is expanding its market share and introducing new products to its portfolio. I would like to be a part of this growth and contribute to the success of the company by taking on leadership roles in these new projects. To achieve this, I plan to actively seek out opportunities to learn and develop my skills, take on new responsibilities, and work closely with senior leaders to gain mentorship and guidance. I believe that by growing my leadership skills and contributing to the company’s vision, I can make a meaningful impact and help drive the company’s success in the future.

This answer demonstrates the candidate’s ambition and commitment to developing their leadership skills, a highly valued trait by employers. It also shows that the candidate has a clear plan for achieving their goals and is willing to take proactive steps to develop their skills.

Sample Answer 3: Cross-Functional Experience

In the next five years, I see myself growing within the company by taking on new challenges and expanding my skillset. I am impressed with the company’s vision for innovation and growth, and I would love to be a part of that journey. Specifically, I am interested in learning more about [specific department or project] and how I can contribute to its success. I plan to seek out opportunities to collaborate with those teams and gain a deeper understanding of their operations. By doing so, I believe I can bring added value to the company and achieve my own professional goals.

This response highlights the candidate’s eagerness to enhance their knowledge and expertise beyond their current position, showcasing a valuable attribute for any employee. Moreover, it indicates that the candidate is proactive in their approach and actively seeks out avenues for progress and advancement within the organization.

Sample Answer 4: Contribution to Company Goals

I see myself growing with the company and taking on new challenges over the next five years. I am excited about the company’s focus on expanding into new markets and developing innovative products, and I would love to be a part of that vision. Specifically, I hope to take on leadership roles within my department and contribute to the company’s success through my skills and expertise. I plan to continually improve myself by seeking out opportunities for training and development and staying up-to-date with industry trends. Ultimately, my goal is to make a significant impact on the company’s growth and success while also advancing my own career.

This answer demonstrates the candidate’s commitment to the company’s goals and values, a highly valued trait by employers. It also shows that the candidate has a clear plan for achieving their goals and is willing to seek feedback and mentorship to ensure their success.

Sample Answer 5: Technical Expertise

In the next five years, I see myself growing within the company and becoming an integral part of its future. I am excited about the company’s vision to expand its digital offerings, and I would love to be a part of that growth. Specifically, I am passionate about developing my technical expertise and becoming a subject matter expert within my field. To achieve this goal, I plan to attend technical training or workshops, seek mentorship or guidance from technical experts within the company, and actively seek out challenging technical projects. My objective is to become a valuable resource for the company and a go-to person for technical questions or projects that contribute to the company’s growth and success.

The candidate’s response indicates a strong drive to improve their technical abilities , reflecting a desirable quality sought by employers. Additionally, the candidate’s clear and well-thought-out plan for skill development showcases their dedication to achieving their objectives and their proactive approach toward seeking opportunities for growth and advancement.

Sample Answer 6: Leadership and Management

I see myself taking on a leadership role within the company over the next five years and managing a team. I have been actively developing my leadership skills, and I believe that I will be ready to take on this responsibility in five years. I plan to continue to grow my skills by taking leadership courses and working closely with my current manager to learn as much as possible.

This answer demonstrates that the candidate has ambition and is committed to growing their skills within the company. It also shows that they have a specific career path in mind and are actively working towards achieving their goals.

Sample Answer 7: Industry Expertise

In five years, I see myself as a vital member of the team, contributing to the company’s growth and success. As I understand the company’s vision, it aims to expand into new markets and develop innovative products to stay ahead of the competition. I am excited about the opportunity to grow alongside the company and be part of this vision. I plan to take on challenging projects, seek out learning opportunities, and continuously improve my skills to contribute to the company’s progress. Additionally, I look forward to mentoring new team members and sharing my knowledge and expertise to contribute to the team’s overall success.

The candidate’s response shows a strong commitment to staying current with the latest industry trends and a drive to enhance their expertise. Moreover, it highlights their proactive attitude and willingness to take on new challenges to advance their objectives.

Sample Answer 8: Making an Impact

In five years, I envision myself as a key player in the company’s growth and success. As the company expands into new markets and takes on more complex projects, I would like to take on a leadership role in these endeavors. I am excited about the company’s focus on innovation and sustainability, and I hope to contribute to these initiatives by developing new strategies and implementing best practices. By seeking out mentorship opportunities and continuously improving my skills, I am confident that I can help the company achieve its long-term goals.

This answer shows that the candidate is focused on making a meaningful impact within the company and is committed to finding ways to contribute to the team’s success. It also demonstrates that they are eager to develop their skills and become a more valuable team member.

Sample Answer 9: Entrepreneurship

In five years, I see myself starting my own business within the industry. I plan to continue learning as much as possible while working at this company and develop a network of industry professionals who can support me when the time comes. I believe that my experience working here will be invaluable when starting my own business.

This answer demonstrates that the candidate is ambitious and has a long-term career plan in mind. It also shows they are committed to developing their skills and network while working at the company. They see their experience there as an asset to their future entrepreneurial endeavors.

Sample Answer 10: Company Loyalty

In five years, I see myself still working at this company and contributing to its growth and success. I plan to continue developing my skills and taking on new challenges as they arise. I believe that this company is the best place for me to achieve my career goals, and I am committed to its success.

The candidate’s response exemplifies their loyalty to the company and their intention to stay for the long haul. It also highlights their unwavering commitment to improving their skills and tackling fresh challenges to propel the company’s growth and prosperity further.

Actionable Tips for the 5-Year Vision Interview Question

When responding to the question, “Where do you see yourself in 5 years?” in an interview, it’s beneficial to focus on one or two key areas that align closely with your career aspirations and the company’s objectives. This section offers actionable tips derived from various focus areas to help you articulate a clear and strategic vision. Tailoring your response by combining aspects of these tips can make your answer more impactful and aligned with your individual goals.

Enhance your understanding of ‘Where do you see yourself in 5 years?’ another video guide. This visual complements the actionable tips provided, offering a dynamic way to understand how to effectively incorporate these strategies into your answer. The video will bring these tips to life, demonstrating how to blend your career aspirations with the company’s goals in a compelling and personalized way. Get ready to refine your response and make a memorable impact in your next interview.

More Frequently Asked Interview Questions

Preparing for an interview can be nerve-wracking, especially when unsure of what to expect. While every interview differs, hiring managers tend to ask several common questions. Knowing how to answer these questions can help you feel more confident and prepared for your interview. This section will review some of the most common interview questions, tips, and example answers to help you nail your next interview.

The best answer to "What is your long-term goal?" will vary depending on the individual and the specific job opportunity. However, a good answer should demonstrate ambition, a clear vision for the future, and alignment with the company's values and goals. Here is an example of a strong answer: "My long-term goal is to continue to grow and develop in my career while making meaningful contributions to the company. Specifically, I aim to take on increasingly challenging roles and responsibilities that allow me to leverage my skills and experience while also expanding my knowledge and expertise. I see myself as a valuable member of the team, working collaboratively with my colleagues to drive the company's success and achieve our shared goals."

One example answer to the question "Where do you see yourself in 10 years?" could be: "In 10 years, I see myself in a leadership role within the company, working closely with the executive team to drive business strategy and innovation. I hope to have developed a strong team of professionals who share my vision and commitment to excellence. Additionally, I plan to have pursued further education and training to expand my skills and knowledge, ultimately positioning myself as an expert in my field." This answer demonstrates ambition, strategic thinking, and a long-term commitment to the company's success. It also shows a willingness to invest in personal and professional growth, which is highly valued by employers. It's important to note that this answer should be tailored to the specific position and company you are interviewing for, showcasing how your long-term goals align with their needs and objectives.

One example answer to the question "What can you bring to the company?" could be: "One of my strengths is my ability to problem-solve and think creatively. In my previous job, I identified a bottleneck in the production process and developed a new strategy that increased efficiency by 30%. I believe this kind of innovative thinking can be applied to any company, and I am excited to bring it to your team." The answer provided showcases a clear understanding of the company's needs and a strong alignment with them. The candidate has also demonstrated how their skills and experience can benefit the company by providing a specific example.

A great example answer to "How do you handle stress and pressure?" would be: "I handle stress and pressure by prioritizing my tasks and breaking them down into smaller, more manageable tasks. I also make sure to take breaks and step away from my work when necessary to clear my mind and refocus. In my previous job, I had a deadline for a project, and there was a lot of pressure to finish it on time. I took the initiative to organize a meeting with my team to discuss our progress and delegate tasks effectively, which helped us meet our deadline without compromising the quality of our work." This answer demonstrates a proactive approach to stress and pressure, emphasizing problem-solving skills, time management, and teamwork. The candidate shows the ability to take charge of the situation and manage their workload effectively while maintaining high quality in their work. Providing a specific example also adds credibility to the candidate's answer, showing their ability to handle stressful situations in the past.

A great way to answer the question, "What can you contribute to the team?" is to provide specific examples of your skills, experiences, and accomplishments related to the job and the team's needs. "I believe my strong communication and collaboration skills, as well as my ability to think creatively and solve problems, would make a valuable contribution to the team. In my previous job, I collaborated with a team of designers and developers to create a new website for our client. My ability to communicate effectively and work well with others helped us meet our deadlines and deliver a high-quality product. I also came up with a creative solution to a technical problem that saved the project time and money. I am confident that I can bring these skills and experiences to this team and contribute to its success." This answer shows that the candidate has specific skills and experiences that are relevant to the job and the team's needs. The example also demonstrates the candidate's ability to work well with others, think creatively, and solve problems, all of which are valuable traits in a team environment. By providing a concrete example, the candidate shows that they have a track record of contributing to a team's success, which can give the hiring manager confidence in their ability to do the same in the new job.

Moving Up the Ladder: Using the “Where Do You See Yourself in 5 Years?” Question to Your Advantage

Answering the question about where you see yourself in 5 years requires a certain amount of crystal ball-gazing. However, by considering your long-term personal goals and creating a five-year plan, you can position yourself for success over the long haul. Whether you’re aiming for a specific management position or simply looking to build your skills and experience as an entry-level employee, having a clear sense of your ultimate goal is a good idea.

At MatchBuilt executive search, we understand that the coming years may hold many opportunities and challenges for job seekers like you. That’s why we’ve provided ten sample answers to one of the most common interview questions, along with advice on how to craft the best response for your potential employers. By following our tips and tailoring your answer to the specific position you’re seeking, you’ll make a great first impression on new employees and increase your chances of landing the job.

About Mark Matyanowski

As the founder of MatchBuilt, with over 18 years of recruiting and coaching experience and 8+ years in executive roles at a leading Fortune 100 company, I am deeply committed to guiding professionals in their career paths.

Our team at MatchBuilt offers expert support in enhancing resumes, optimizing LinkedIn profiles, and preparing for interviews. Our blog, drawing on our rich experience and industry insights, is a valuable resource for job seekers.

We take pride in successfully guiding job candidates to top-tier company roles while empowering individuals to achieve their career ambitions, irrespective of their background or educational level.

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Where do you live? That’s a complicated question for a California town with no street addresses

No one in this California town known for its white-sand beaches and storybook charm has a street address. But unlike the houses in Carmel-By-The-Sea, those days may soon be numbered. The city council voted to issue street numbers. (AP Video/Terry Chea)

Homes are seen in Carmel-By-The-Sea, Calif., Tuesday, July 23, 2024. (AP Photo/Godofredo A. Vásquez)

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Sharon, left, and Chip Clarke walk their dogs along Scenic Road, Tuesday, July 23, 2024, in Carmel-By-The-Sea, Calif. (AP Photo/Godofredo A. Vásquez)

David Wilkinson walks along Scenic Road, Tuesday, July 23, 2024, in Carmel-By-The-Sea, Calif. (AP Photo/Godofredo A. Vásquez)

A UPS worker delivers packages to the United States Post Office in Carmel-By-The-Sea, Calif., Tuesday, July 23, 2024. (AP Photo/Godofredo A. Vásquez)

People visit Carmel-By-The-Sea, Calif., on Tuesday, July 23, 2024. (AP Photo/Godofredo A. Vásquez)

Councilmember Karen Ferlito is photographed at her home Tuesday, July 23, 2024, in Carmel-By-The-Sea, Calif. (AP Photo/Godofredo A. Vásquez)

People walk along Ocean Avenue, Tuesday, July 23, 2024, in Carmel-By-The-Sea, Calif. (AP Photo/Godofredo A. Vásquez)

Homes in Carmel-By-The-Sea, Calif., are identified by name as the city does not use addresses, Tuesday, July 23, 2024. (AP Photo/Godofredo A. Vásquez)

CARMEL-BY-THE-SEA, Calif. (AP) — No one in this wealthy California community known for its white-sand beaches and storybook charm has a street address. But unlike the houses in Carmel-By-The-Sea, those days may soon be numbered.

After more than a century of address-free living, this seaside tourist destination where Clint Eastwood once presided as mayor is moving ahead with a plan to assign street numbers to homes and businesses.

Many long-time residents aren’t happy about it.

The city’s residents and visitors must navigate a woodsy, 1-square-mile (2.5-square-kilometer) landscape where houses, stores, restaurants and other buildings don’t have numbers. It’s even more difficult at night because the town has few street lights.

When asked for their address, residents describe their homes’ color or style, nearby landmarks like cypress trees and fire hydrants or their location relative to the nearest cross street. Many houses have signs with whimsical names like Neverland, Dreamcatcher and Pinch Me or descriptors such as “San Antonio 3 SE of 9th.”

There is no mail delivery service, so residents must pick up up their mail at the U.S. post office, the only building with an official address.

But street addresses may finally be coming to this coastal city of 3,300 residents, about 120 miles (193 kilometers) south of San Francisco. In July, the city council voted 3-2 to move forward with a plan to issue street numbers.

“When emergency crews are responding, particularly at night, it’s very difficult to count houses in order to find the right house,” Councilmember Karen Ferlito said, noting the city has an aging population. “Sometimes they go to the wrong house and that wastes precious time.”

Residents complain that many government agencies and businesses require physical address for service. They say delivery and taxi drivers can’t find their homes and often drop off packages and food orders at the wrong house.

“We’ve had flowers delivered that were useless. We’ve had fruit baskets delivered when my dad died that were six weeks old,” said Betty Kullas, who moved to Carmel 15 years ago. “Sometimes if you know it’s been delivered somewhere, you have to go out with a flashlight at night, going house to house to see if you can find it.”

Kullas said her husband’s $13,000 medication never arrived, and having it delivered to the post office won’t work because it requires refrigeration. It was a struggle to get water, electricity and cable service without a physical address.

But many don’t see the need for street addresses, even in modern times when people increasingly use their addresses to shop online and get important legal documents.

“I was born in Carmel 67 years ago. I grew up with no street addresses, and it’s just something you’re used to,” life-long resident Grant Johnson said outside the post office. “That’s one of the charms of Carmel. It’s one of the stories we get to tell.”

Those opposed include the mayor, who voted against the measure.

“If it’s not broke, don’t fix it,” Mayor Dave Potter said during an interview at his home. “I just don’t think it’s necessary. I mean, honestly, we’ve lived this way for 100 years. We don’t need them.”

The issue of street addresses has generated controversy in Carmel since its founding in 1916, often pitting business owners against residents intent on preserving the character, culture and village charm.

City officials passed an ordinance requiring house numbering in 1926, but preservation-minded residents fought back. Three years later, the city passed an ordinance to keep Carmel’s residential streets free of sidewalks, street lights, neon signs, high-rise buildings, mailboxes. It also prohibited street addresses.

In 1953, Carmel threatened to secede from California over proposed state legislation requiring house numbers. The bill didn’t pass.

The issue reemerged as a hot-button issue during the pandemic, when in-person interactions were curtailed and more residents wanted to have packages and meals delivered to their homes.

Local law enforcement and fire officials spoke out in support of addresses at the July 9 council meeting, noting the lack of street numbers violates fire and building codes.

Potter dismissed the safety concerns, pointing out that local emergency service providers have detailed knowledge of the town and can respond within a few minutes.

Some longtime residents worry street numbers will take away from Carmel’s quaintness.

“I’ve lived here so long, I’ve kind of forgotten what it’s like to have mail delivered, so it doesn’t bother me,” resident Virginia Crapo said. “I think it’s more communal when you have to come down to the post office to get your mail because you can see your neighbors.”

Even after homes receive street addresses, the post office will remain open and there will be no delivery mail service to residences, Ferlito said.

After the council vote, the city staff was directed to develop a numbering plan that must be approved by the U.S. Postal Service.

But the story isn’t over. In November, residents will vote for city councilmembers and a mayor who will determine the fate of whether to issue addresses to residents.

“This is a very political issue, and I don’t know what will happen after the election, but I hope that the new council will continue to stay the course,” said Councilmember Jeff Baron, who is running for mayor and voted for street addresses.

Others agree it’s time to join the modern world.

“I don’t think street numbers will ruin the charm,” said part-time resident Bruce Edwards, who was picking up mail from his post office box. “I’m in favor of it because of delivery issues. Uber will work better. The ambulances will be able to find us when I have a heart attack. And my UPS driver will be able to deliver my books.”

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Motley Fool: Cruising for profits

If you’re hesitant to board shares of Carnival Corp. (NYSE: CCL) these days, you’re not alone. But this is a great time to consider an investment in the industry giant that operates 87 cruise ships across nine different brands worldwide (including Carnival Cruise Line, Holland America Line and Princess Cruises).

Total customer deposits at Carnival for future sailings are at an all-time high of $8.3 billion. In the company’s second quarter, revenue rose 18% year over year to $5.78 billion, exceeding Wall Street expectations. Where analysts were expecting a loss, Carnival posted a net gain. Carnival has been exceeding Wall Street profit targets since resuming normal operations almost two years ago.

The same Carnival that, during the darkest stretches of the COVID-19 crisis, some figured would never turn a profit is trading at a recent price-to-sales ratio of 0.8, well below its five-year average of 1.3 (which includes some years heavily pressured by the pandemic).

Carnival’s doing a good job of cleaning up its balance sheet now that it’s making money again. It has bought back $6.6 billion of its debt in the last five quarters. Carnival bulls expect debt repayments, more efficiency from a newer fleet and, eventually, a return to paying out quarterly dividends. Bears worry that there’s still a lot of debt to pay off. Do a little digging and see what you think. (The Motley Fool recommends Carnival.)

My dumbest investment

My most regrettable financial move? Changing cars every three years when I was in my 30s. – M.M., online

The Fool responds: Many people change cars frequently, and it’s generally not a great move financially. It’s especially harmful if you’re buying a new car every few years, because cars typically lose about 20% of their value in their first year and then around 15% of the lowered value each year after that.

Let’s say you bought a new car for $25,000. It might be worth only $20,000 after one year, and $14,450 after three years – that’s just 58% of its original value. If you sold it then to buy another $25,000 car, you’d be shelling out over $10,500. Do that three times in a single decade and you’d lose more than $30,000 – which could have been used for other goals, like boosting your retirement account considerably.

Repeatedly leasing new cars instead of buying them and driving them for a decade or more is also usually not a great move. Yes, you’ll have lower monthly payments, but you won’t build equity in the car, and you may have restrictions such as mileage. You’ll also keep making monthly payments – whereas a car buyer will generally pay for only a few years, after which they’ll own their car outright.

Ask the Fool

Q: What’s “vulture capitalism”? – S.H., Centerville, Utah

A: In the more familiar venture capitalism, wealthy people pool their money to invest in companies privately. Typically, these are small, relatively young companies before they debut on the open market, usually via initial public offerings (IPOs). Many well-known companies – such as Apple, Airbnb, Pinterest and Spotify – received early funding from venture capitalists.

“Vulture” capitalists are a type of venture capitalist, but they provide financing to companies (and sometimes even governments) in crisis – often buying distressed companies at low prices. They may require extreme cost-cutting and typically sell off assets – and the companies may still end up bankrupt.

Q: I read somewhere that it’s easier for a 50-cent stock to go to $1 than for a $50 stock to go to $100. Is that true? – G.L., Decatur, Illinois

A: Nope. First, understand that a stock priced at 50 cents per share is a penny stock, and penny stocks, in general, are notoriously volatile and risky. (Penny stocks are often defined as those trading for less than around $5 per share.) That 50 cents-per-share price may seem low, but it’s low for a reason: Penny stocks are often tied to shaky and unproven companies. The stock may very well fall to 10 cents or 1 cent per share instead of doubling to $1.

Meanwhile, that $50 stock may well belong to a profitable company with a track record of growing its revenue and earnings. The stock may be on its way to $100, $200 or higher. With any stock you’re considering buying, be sure to read and learn a lot about it. Ideally, you want to invest only in great companies and only when they’re trading at good or great prices.

Specialized procedure: Seattle patient travels to Spokane for robotic heart surgery at Sacred Heart

When a lifelong heart condition became worse, Donny Jones, who lives near Seattle, knew by last June that he’d be heading to Spokane.

More From Forbes

6 astute intake questions to ask potential clients.

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New York native and nomad by choice—Emily is a marketing & PR pro, now the founder of the award-winning R Public Relations , New York.

As an agency owner, one of my most significant challenges has been onboarding clients who are a great culture fit for my business. I’ve gone through so much trial and error in my search for amazing clients who love and appreciate our work as much as we love and appreciate them.

I’ve noticed that intake calls provide an excellent opportunity to test the viability of client partnerships. I’ve honed my questions over the years, and now I only ask a handful, but I believe the answers hold the key to whether or not the relationship will work.

Asking The Right Questions

Like in a traditional job interview, anyone can answer generic questions with finesse. It’s critical to ask questions that probe below the surface to determine whether a potential client is a good fit for your firm. Skip the softball questions and spend your valuable time asking only the ones that matter.

The right questions—those that force the client to think about their answers, what they want from the relationship and how they’ll treat your team if things don’t go according to plan—can save you pain in the long run. Ask questions that reveal the potential client’s authentic company culture, approach toward employee relations and ability to successfully collaborate with an external team.

Spotting Client/Agency Misalignment

As a business owner, you’ve probably spent ample time refining your brand’s mission, vision and values. That’s all well and good, but if your clients don’t align with your brand values, you won’t be able to live them out successfully. Your employees and your customers will feel the disconnect.

Look for “friction” in your existing or past client relationships. Which relationships feel more demanding than they should? Which ones do you have to spin your wheels on to get just an inch of traction? Those might indicate that you are not the best agency fit for your client, and vice versa. Try to notice patterns.

6 Great Intake Questions To Ask Potential Clients

In preparation for your next client intro session, plan to ask the following questions. Pay close attention to your potential client’s answers. Asking the right questions can ensure alignment up front, leading to longer-lasting, more fruitful relationships.

1. How do you define success in your industry? How would you define success when evaluating the functions we’d perform on your behalf?

A client-agency relationship can only work with clear goals, expectations and success indicators. This question is effective in two ways: It forces the client to consider what they want to glean from the relationship and exposes whether or not the client has defined these expectations internally. This question may also reveal impossible expectations that your agency cannot achieve, giving you a chance to leave the project before it begins.

2. What has worked well when you've collaborated with agencies in the past, and what hasn’t?

Understanding why the potential client’s past agency relationships expired is essential. Perhaps the old agency wasn’t delivering the expected results or the culture fit wasn’t quite right. Knowing what went wrong in the past can prevent specific issues in the future. However, this question may also expose the potential client’s inability to communicate effectively, trouble meeting deadlines or another problem that switching agencies cannot resolve.

3. Which of our core values does your business align with the most?

Client-agency relationships are a two-way street. Both parties need to be committed to the same goals and be willing to put in the work. Clear, quick communication, goal alignment and mutual respect are necessary. That’s why it’s just as important that the client does their research on your agency as it is that you do your research on their company. The client must demonstrate that they are serious about the partnership and that how they’ll treat your team aligns with your agency’s values.

If your potential client can’t answer this question, consider following up with them about it in a week. If they still don’t have an answer, I suggest walking away. The ability to follow up on action items is an integral part of a successful agency-client relationship.

4. What is your team currently doing to stand out from your competitors?

No matter what your agency specializes in, you need to understand your clients' value propositions as they see them to grow their business successfully. It’s vital that your clients feel confident outlining their business’s differentiators. If they don’t have any, ask what projects are in the works that may launch in the next six months.

5. Why are you hiring an agency instead of internal employees?

Many great reasons exist for selecting an agency relationship over an in-house hire. From competitive pricing to specialized expertise, agencies are adept at getting the job done well and fast. However, this question is still worth asking, especially if the potential client is new to agency relationships. Clients who do not have a solid grasp on working with agencies may need some education regarding scopes of work, billing and scheduling norms to ensure seamless collaboration without compromising your team’s boundaries.

6. What does failure mean to you?

No campaign goes precisely according to plan, so every client should expect some iteration. This question requires your potential client to consider what they can take away from failure. Even without the desired outcome, are they comfortable using failed campaigns as learning opportunities or jumping-off points for future ideas? Or does failure signal the loss of a job or budget? It’s essential to get clear on this in advance.

Armed with these six questions, you’ll likely onboard more aligned, committed and enthusiastic clients than ever before. Remember: don’t be afraid to walk away if the answers don’t feel right. When we started sifting out bad client relationships upfront, I found that my team’s happiness, work-life balance and quality of deliverables noticeably improved. Our client relationships now last longer and are more lucrative than before. Agency ownership isn’t easy, but onboarding the right clients is an excellent place to start.

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?

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Fact-Checking Claims About Tim Walz’s Record

Republicans have leveled inaccurate or misleading attacks on Mr. Walz’s response to protests in the summer of 2020, his positions on immigration and his role in the redesign of Minnesota’s flag.

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By Linda Qiu

Since Gov. Tim Walz of Minnesota was announced as the Democratic nominee for vice president, the Trump campaign and its allies have gone on the attack.

Mr. Walz, a former teacher and football coach from Nebraska who served in the National Guard, was elected to the U.S. House of Representatives in 2006 and then as Minnesota’s governor in 2018. His branding of former President Donald J. Trump as “weird” this year caught on among Democrats and helped catapult him into the national spotlight and to the top of Vice President Kamala Harris’s list of potential running mates.

The Republican accusations, which include questions over his military service , seem intended at undercutting a re-energized campaign after President Biden stepped aside and Ms. Harris emerged as his replacement at the top of the ticket. Mr. Trump and his allies have criticized, sometimes inaccurately, Mr. Walz’s handling of protests in his state, his immigration policies, his comments about a ladder factory and the redesign of his state’s flag.

Here’s a fact check of some claims.

What Was Said

“Because if we remember the rioting in the summer of 2020, Tim Walz was the guy who let rioters burn down Minneapolis.” — Senator JD Vance of Ohio, the Republican nominee for vice president, during a rally on Wednesday in Philadelphia

This is exaggerated. Mr. Walz has faced criticism for not quickly activating the National Guard to quell civil unrest in Minneapolis in the summer of 2020 after the murder of George Floyd by a police officer. But claims that he did not respond at all, or that the city burned down, are hyperbolic.

Mr. Floyd was murdered on May 25, 2020, and demonstrators took to the streets the next day . The protests intensified, with some vandalizing vehicles and setting fires. More than 700 state troopers and officers with the Minnesota Department of Natural Resources’ mobile response team were deployed on May 26 to help the city’s police officers, according to a 2022 independent assessment by the state’s Department of Public Safety of the response to the unrest.

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