Starting a new business is an exciting but complex journey, and crafting a realistic business plan is pivotal. Here are the top 10 most important questions new founders should answer, each illustrated with a real-life scenario from different business types:
1. What Problem Am I Solving?
Scenario: An entrepreneur wants to launch a reusable packaging startup. She researches and learns that local retailers struggle with high packaging costs and customers desire more eco-friendly options. Her business aims to solve these dual problems by offering affordable, sustainable packaging solutions.[1][2][3]
2. Who Is My Target Customer?
Scenario: A chef plans to start a food truck specializing in vegan comfort food. He identifies his ideal customers as city millennials with busy lifestyles who value quick, plant-based meals.[4][5][3]
3. Who Are My Competitors and What Sets Me Apart?
Scenario: Launching a nonprofit tutoring service, you notice several others in your city. You discover your competitors only serve high school students. Your unique value? Personalized tutoring for adults seeking their GED, filling an unmet local need.[5][3][1]
4. What Is My Unique Selling Proposition (USP)?
Scenario: A software company enters the crowded project management app space. Their USP: seamless integration with all major remote work tools and AI-driven workflow recommendations, making them especially attractive to fully remote teams.[6][3][5]
5. How Will I Market My Business?
Scenario: A bakery targets young families but realizes their audience hangs out on Instagram and local parent Facebook groups. The owner dedicates part of her plan to social media ads, influencer tastings, and kid-friendly community events.[3][4][5]
6. How Will I Fund the Startup (and What Funds Do I Need)?
Scenario: A craftsman wants to open an artisan furniture studio. After calculating rent, supplies, and initial labor costs, he realizes he’ll need a $50,000 loan, which he plans to apply for at his local credit union.[7][8]
7. What Risks Am I Willing to Take, and What’s My Plan If Things Go Wrong?
Scenario: A team launching an online marketplace for local farmers understands the risk of delayed regulatory approvals. They create a contingency fund and alternate income plan (freelance web development) to cover themselves for up to six months if launch is delayed.[8][1]
8. How Will I Measure Success Beyond Revenue?
Scenario: Founders of a mental health nonprofit decide that, beyond financial stability, their metric for success will be the number of individuals accessing affordable care and new partnerships formed with local clinics.[9][1]
9. What Legal Structure and Regulations Apply to My Business?
Scenario: A consultant starts a new practice and weighs incorporation versus an LLC for liability and tax reasons. She consults a legal expert to choose the right structure and ensure compliance with licensing requirements.[5][9]
10. Who/What Networks Can I Rely On for Support and Growth?
Scenario: A solo app developer identifies three key mentors: a UX designer, a successful tech founder, and a marketing guru. She connects with them regularly for advice and introductions, accelerating her product’s path to market.[1][3]
Answering these questions honestly and thoroughly will help you construct a business plan that’s grounded, realistic, and actionable—giving your new venture the strongest foundation for success. Article created with research help from Perplexity.
https://www.liveplan.com/blog/starting/ask-these-questions-before-starting
https://www.joorney.com/news/10-questions-your-business-plan-must-answer/
https://www.score.org/resource/blog-post/9-questions-smart-entrepreneurs-answer-starting-a-business
https://www.indeed.com/career-advice/interviewing/questions-to-ask-entrepreneur
https://www.indeed.com/career-advice/starting-new-job/factors-to-consider-before-starting-a-business
https://finotor.com/questions-entrepreneur-before-small-business/