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Top 10 questions every business plan should answer.
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Starting and building your own business can be overwhelming. And while many business owners cringe at the mere mention of drafting a business plan, it is a great exercise to get your business back on track and to plan for future growth. More specifically, it forces you to map out where you are now, where you need to go and most importantly how you plan to get there. If you are a first time business owner, or have never written a business plan, you may not know where to start. Our friends at Corporate Tax Network have helped thousands of business owners meet their goals through financial and business planning strategies. Below is their list of the Top 10 Questions Every Business Plan Should Answer.
1) What is the need that your business exists to satisfy?
- Every business exists because of some noticeable opportunity that you have discovered within the market. So you must clearly define the need and/or problem you are solving with this business.
2) How will your business satisfy the need?
- Introduce and describe the business itself. Consider including a mission or vision statement with objectives detailing how the business satisfies the need in the market.
3) How does your company differentiate itself?
- Describe your business model and competitive advantage. This will help you to outline how the business will sustain its position within the market.
4) Who will be the key players in the business?
- Name the management team, board and advisers to the business. Highlight their expertise and experiences.
5) How big is the market you are entering?
- Only after understanding the industry you are entering – its size, attractiveness and profit potential – can you truly justify the opportunity.
6) Who will you be targeting as customers?
- Narrowing down your target customer will help enhance and define your marketing strategy.
7) What will be your most effective marketing and promotional strategies?
- Once you’ve identified your target client, you’ll need to develop and implement a strategy on how best to reach them (e.g. PPC, television, radio, social, etc). And this in large part will be influenced by where your target client consumes information.
8) What are the economics of your business?
- Define your revenue streams including pricing structure, costs, margins and expenses.
9) How much money is required to get your business started and generating revenue?
- Identify needed capital requirements by determining where your business stands today, and what is needed in order to move forward. Also, if you are in need of outside funding, what will be the sources and uses of funds requested.
10) What needs to happen to break-even?
- Play around with financial projections and forecasts to determine the volume of sales needed to cover your expenses and to become profitable. Include monthly breakdowns for the first two years.
Whether your objective is to find an investor, get a business loan or just improve the way you run your business, your business plan must answer these key questions. Remember, there is no right or wrong answer, but addressing these questions will help you build a roadmap for your business. And, of course, the better the map, the greater the likelihood that you’ll reach your destination!
For more information on financial strategies, contact our partners at Corporate Tax Network today. They have a team of business consultants and tax advisors standing by to help you. You can also follow them on Twitter for daily business information.
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6 Critical Questions Your Business Plan Must Answer If you want to lay the groundwork for a stable business and attract investors, make sure you're hitting these points.
By Larry Alton Edited by Dan Bova Mar 18, 2015
Opinions expressed by Entrepreneur contributors are their own.
Never underestimate the importance of your business plan . It is the backbone of your company, a foundational pillar from which your enterprise will be built. It's going to serve as the first impression for countless potential partners and investors, and it's going to serve as a roadmap for your whole business -- at least for the first several years.
In some ways, writing a business plan is easy -- there are no rules or requirements for length, format, presentation, or even subject matter. But finding the right answers to the right questions is critical if you want to lay the groundwork for a stable business and attract sufficient attention from investors.
Related: 25 Common Characteristics of Successful Entrepreneurs
1. What need are you addressing?
This is an important question because it extends beyond the simple "What does your business do?" It's one thing to outline your business in general, describing what products you make or what services you offer, but if you want a solid business plan you have to take it to the next level.
It's nice to imagine your business as providing something useful, and if you're excited about the idea, it's that much easier to think about people buying it. But you need to be logical and critical when you consider the driving force behind your customers' purchasing decisions: what fundamental customer need is your business addressing? You'll want to back this up with research that shows the need actually exists.
2. What makes you different?
It's a big world out there, and startups are constantly coming on and off the radar. Chances are, there are multiple businesses out there who are already serving the crucial need you outlined from question one. That doesn't mean you can't serve it better, or serve it in a different way, but therein lies the challenge—figuring out what makes you different.
First, you'll need to acknowledge all the major players in your space, and this is going to require some research. Acknowledge what they're doing right, what they're doing wrong, and how they're going about their business. Identify the differentiating factor that will allow you to stand out, and emphasize it.
Related: Struggling to Define Your Business Goals? Ask Yourself These Questions.
3. Who is your audience?
Here's a hint: the answer can't be "everybody." No matter how useful or practical your product or service is, there's no way you're going to be able to sell to everyone in the world. Think about factors like age, sex, education, geographic location, working status, marital status, and perform some preliminary market research to determine the best path forward.
Your key demographic may evolve over time, so don't stay too committed to one niche. Also remember, that it's easy to expand to other markets once you've established yourself in one, so if you have multiple key demographics, it may be wise to focus on one to start things off.
4. How is your business going to make money?
This seems like an obvious question to answer, but you'd be surprised how many entrepreneurs fail to elaborate on their plan. The brief answer to this question is "sell products/services," but how are you going to sell? Where are you going to sell? How much are you going to sell for?
The other side of the question is what are your operating expenses? Who are you going to pay? What services or partners will you need to pay for? And ultimately, will the amount you sell be able to surpass the amount you owe? When will you break even?
5. How will you promote your business?
Promoting your business is just as important as creating it. Otherwise, people will never know who you are. Your marketing strategy should start off based on what similar businesses before you have done. Do they rely on traditional advertising or online marketing? Do they attend tradeshows and local events, or use technology to spread the word about their existence?
Related: The Ultimate Guide to Writing a Business Plan
6. What do you need to get started?
For many potential partners and investors, this is the bottom line. All businesses have to start somewhere, but that starting line varies dramatically from industry to industry and from entrepreneur to entrepreneur. Do you need any advanced equipment? Who will you need to hire? How much will you need for an initial run? These questions should give you an idea exactly how much capital and what resources you need initially.
It may seem counterintuitive, but answering these questions isn't a one-time process. Your business plan should be a living, changing document that evolves along with your company. Throughout your course of entrepreneurship, you're going to encounter new challenges, new opportunities, and hundreds of factors you never considered as significant to your business when you were writing the initial plan. To survive, you're going to have to revise your answers to these questions and update your business plan accordingly.
Related: The Essential Ingredients to Startup Success
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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
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.
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.
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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!
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Business Plan Questions: How To Set Yourself up for Success
![what are the possible questions in business plan defense what are the possible questions in business plan defense](https://images.ctfassets.net/xaz4dmbxd3r9/2twXW7ug79XN1qugeGJMxA/0446b2e55c3f3f934c6d7c37462434fb/beambox-logo.png?fit=fill&fm=jpg&h=150&q=85&w=200)
- articles--table-of-contents#moveToHeadline" data-target="articles--table-of-contents.section">Why Having a Business Plan Is Critical
- articles--table-of-contents#moveToHeadline" data-target="articles--table-of-contents.section">What Are the Four Basic Business Questions?
- articles--table-of-contents#moveToHeadline" data-target="articles--table-of-contents.section">Additional Questions To Ask When Starting a Business Plan
- articles--table-of-contents#moveToHeadline" data-target="articles--table-of-contents.section">Business Plan Questions Checklist Help You Turn Your Idea Into Reality
“Ideas are easy. Execution is everything.” This is Silicon Valley venture capitalist John Doerr’s advice to aspiring entrepreneurs and business school students. But between an idea and its execution is planning. That’s why it’s essential to have an effective business plan. How do you do that? With clear answers to business plan questions. Here we’ve put together an all-in-one roadmap to those planning questions.
![what are the possible questions in business plan defense Why Having a Business Plan Is Critical](https://images.ctfassets.net/xaz4dmbxd3r9/6bvNLEa6CCt9pTZosk2blh/31891803309b058eb6be102594de9fc4/Why_Having_a_Business_Plan_Is_Critical.jpg?fit=fill&q=85&w=1111)
Why Having a Business Plan Is Critical
Before we jump into questions a solid business plan should answer, let’s explain why you need business plans anyway.
- Your business plan is your company’s foundation and backbone. It’s your business model and should inform every aspect of your company’s operations.
- It’s your vision statement. Your business plan lays out your short and long-term objectives and guides you from one milestone to the next. It keeps you focused on what’s relevant, especially when establishing your presence in your industry.
- It proves you mean serious business, pun intended. This is important not only if you’re looking for investors or funding but also when hiring the right people. A good business plan gives you credibility and inspires confidence in your ability to implement business success.
- It helps you understand the competition. Crafting your business plan involves studying and understanding other players in the marketplace. This will put you in a better position within the competitive landscape.
- Whether you own small businesses or large corporations, business planning questions and business plans identify your target market. It points your market analysis in the right direction to cater to your target customer.
- It clarifies your financial needs. It lays out the complex numbers. How much capital do you need? How much does everything cost? When can you expect a return on your investment?
- It determines your brand’s position in the market. A successful plan shows what niche your company can occupy and how.
![what are the possible questions in business plan defense What Are the Four Basic Business Questions](https://images.ctfassets.net/xaz4dmbxd3r9/6qzOJ0XDwTufIshIdW1wXm/ccfccf658d92f416694d163f7f21052b/What_Are_the_Four_Basic_Business_Questions.jpg?fit=fill&q=85&w=1111)
What Are the Four Basic Business Questions?
What are the four basic business questions your business plan should answer? They are:
- What do you do?
- What gap in the market do you fill?
- How will you make a profit?
- Who is your target customer?
Keep scrolling and see how we dive deeper into each of these inquiries. If you can answer these four, your growing company has the competitive advantage to attract potential customers.
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1. Business Plan Questions: What Do You Do?
“What does your business do?”
This is a simple enough question, right? Anyone who wants to start a company has a product or service they want to sell.
But if you want to own a successful business, you need to go further than that. It’s not enough to just know what you want to provide; you need details. For example, say you want to own a restaurant. What kind of restaurant? What food do you serve, what is your service style, and why?
The “why” behind what your business does is crucial. It has to motivate you when presenting to financing partners. It has to keep you going when you’re struggling to attract clients. It has to push you to have a competitive advantage over your neighbors.
Do you need some help getting the juices flowing? Grab a pen and paper and start writing all details about your business and what it does.
![what are the possible questions in business plan defense What Gap in the Market Are You Filling](https://images.ctfassets.net/xaz4dmbxd3r9/5dRW322Zg92PYWSYbCoF7g/b0e9e77f70b18cc42a2e3b110615bdf8/What_Gap_in_the_Market_Are_You_Filling.jpg?fit=fill&q=85&w=1111)
2. What Gap in the Market Are You Filling?
What is your niche? How does your brand-new company differ from your competitors? In short, what gap in the market do you fill?
However great your idea is, someone else probably thought of it too. In this fast-paced world, it takes time to develop a new way of delivering a unique product or service.
Successful business plans and models create new ways to solve old problems. You need to find which part of the market other folks overlook and figure out how to fill it. Do that, and you’ll increase your chances of getting more money and funding.
No matter your industry, you’ll face competition that’s been in the game longer than you. They’ll already have a loyal following. You need to offer something different, so customers take notice.
So how do you find your niche? Do tons of research — this time, on the competition. See what others do and identify how to set yourself apart from the crowd.
This could be by presenting your product/service differently or adding something small but special. Or mastering new technology and online marketing tools. Whatever you choose, create a distinct identity for your business and emphasize it from the get-go.
In your plan, describe what makes you different and how you will assert this advantage.
![what are the possible questions in business plan defense How Will You Earn Money](https://images.ctfassets.net/xaz4dmbxd3r9/6LSDffQ6mPtYiOFa54KWux/b74bcb01bd2464f2092e085be293ba92/How_Will_You_Earn_Money.jpg?fit=fill&q=85&w=1111)
3. Business Plan Questions: How Will You Earn Money?
Money, finance, costs. These (sometimes scary) words are a big part of any effective business plan. That’s why one of the most crucial business plan questions you must answer is: how will you earn money?
And your answer needs to go further than “By selling this product/service, of course.” How your business makes money involves multiple approaches.
How are you going to sell your products/services? Where are you going to sell them? How much do your products and services cost? What unexpected expenses might you have to pay for? Do you need additional funding to cover these costs? How will you pay your workers?
Your business plan should answer all of these questions.
That way, you’ll know if your business is sustainable in terms of your financial projections. Plus, you’ll see how and where you can adjust to achieve your goals in a realistic period. Next, you’ll better understand the necessary financial risks to get your business off the ground.
Lastly, you’ll understand what funding you need to secure and what research you need to do to get there. That way, working out the maximum profitability of your venue or business won’t be such a mystery.
![what are the possible questions in business plan defense Who Is Your Target Customer](https://images.ctfassets.net/xaz4dmbxd3r9/7KykiU5mkr62pNyEcI6WPZ/7ac8ce677aaae8b1919c00db57f5d3ee/Who_Is_Your_Target_Customer.jpg?fit=fill&q=85&w=1111)
4. Who Is Your Target Customer?
Last on our list of the four essential business planning questions: who is your target customer?
We can talk about sales, financial projections, bright ideas, and marketing all day. But there’s only a point if you know who you’re selling to.
Apart from understanding your goal client’s purchasing decisions, you need to know as much as possible about their demographic. You need to identify their age, gender status, geographic location, education, employment status, marital status, etc.
First, identify your initial demographic. Start-up businesses and businesses that have been in the game for years have different audiences. In general, you want to begin with a specific demographic.
Get as detailed as you can. This way, you set your company up for success with folks who are the most interested in what you’re selling. As time passes, you can expand that radius to reach more people.
The best way to conduct this market analysis is through (you guessed it) research. For example, look at your competitors and see who shops at their establishment or buys their services.
![what are the possible questions in business plan defense Additional Questions To Ask](https://images.ctfassets.net/xaz4dmbxd3r9/14yBicP7hi9ukZg3tWFFFx/3f03244a351d3b6cf2671894dbcec415/Additional_Questions_To_Ask.jpg?fit=fill&q=85&w=1111)
Additional Questions To Ask When Starting a Business Plan
With those four business planning questions, you’ve got the start of a solid business plan. Of course, you can’t just leave it at that. Successful businesses know they must go above and beyond the bare minimum.
With that in mind, we’ve come up with more critical things to focus on if you want to succeed. Here are our top additional questions to ask when starting a business plan.
![what are the possible questions in business plan defense What Is Your Marketing Strategy](https://images.ctfassets.net/xaz4dmbxd3r9/3E3lXkEmkZkik5DMumEiki/13565476207bcc88ae61df8725316a7d/What_Is_Your_Marketing_Strategy.jpg?fit=fill&q=85&w=1111)
Business Planning Questions: What Is Your Marketing Strategy?
However tremendous or unique your business model, if you don’t know how to market it effectively, it will fail. Even if you add your business to Google Maps , you won’t rank high on local searches without solid marketing.
That’s why we recommend creating a firm marketing strategy outline addressing your goals and challenges. Base your strategy on your product or service, your niche, your budget, and what your competitors do.
Why do we emphasize competitor research so much? Because it shows you what works and what doesn’t.
Of course, you want to avoid copying whatever they do. (Honest business practices are the best practices.) But you should use them as inspiration for your objectives.
What Do You Need To Turn Your Dreams Into Action?
How do you turn your dreams into reality? In short, how do you go from brainstorming to doing? Say you’re a restaurateur. It’s one thing to figure out how to open a restaurant versus how to win a Michelin star .
Answering this fundamental question for a business plan should give your potential investors a clear picture of the bottom line. That way, they can decide if your business is feasible.
You need initial capital and resources to start. You should identify your starting line and understand that it varies from industry to industry. (For example, the profit that successful bars make is different than what a hotel makes.) Then, provide the details of what you need to spend from this starting line when you craft your business plan.
How much revolving capital will you need for the initial run of your business? Do you need to hire people or purchase/rent equipment? What’s the price of the equipment?
How many costs can you cover out of pocket, and which require additional support? How long will it take before you can circulate your initial capital? Include all these questions and answers in your business outline, and you’ll succeed.
![what are the possible questions in business plan defense What Are Your Short And Long-term Goals](https://images.ctfassets.net/xaz4dmbxd3r9/1h7Eu83fEtMPNv72eIpzRR/8eb58aa470fa741f8d59aa6077fd812d/What_Are_Your_Short_And_Long-term_Goals.jpg?fit=fill&q=85&w=1111)
What Are Your Short and Long-term Goals?
Last but not least, for our business plan questions, let’s talk about your goals. No matter your services or products, you need a timeline for short and long-term goals.
Short-term goals are ideally achieved within a startup’s first two years. Long-term goals go beyond the first two years after your business is finally experiencing its initial ROI. (Return on Investment.) Make you have realistic goals and timelines. Here are critical business goals you may want to manage:
- Reduce business overhead
- Increase productivity
- Reach a specific number of followers on social media through organic growth.
- Reach a specific number of social media followers through paid advertising
- Develop a new product or services
- Launch your new product
- Open another store
![what are the possible questions in business plan defense Help You Turn Your Idea Into Reality](https://images.ctfassets.net/xaz4dmbxd3r9/5h7JD4WralCdSwVMl2WOvX/2e9eb2b72ca7f065974ddedd01a64f02/Help_You_Turn_Your_Idea_Into_Reality.jpg?fit=fill&q=85&w=1111)
Business Plan Questions Checklist Help You Turn Your Idea Into Reality
We hope this business plan questions checklist and article help you manage your company successfully.
With this, you can craft an impressive plan for potential investors and guide your business from point to point. Remember: your first business plan will evolve as you adapt to new opportunities, challenges, and trends.
Setting yourself apart as a startup should involve giving your customers the best experience at every opportunity. This is how you build a loyal customer base. If you have a physical store, make your customers feel valued with guest WiFi privileges they’ll enjoy.
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- Understand your clients with innovative proximity marketing tools set up with your existing WiFi .
- Establish a perfect online reputation with customer reviews.
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11 Strategic Planning Questions Asked By Business Leaders [With Answers]
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Get answers to the top 11 strategic planning questions asked by business leaders. This guide provides direction for effective strategic decision-making.
After years of helping organizations simplify their strategy and reporting processes, it has become clear that many organizations struggle with similar strategic planning questions. Because all these questions are important—and the answers tend to help organizations get a better grip on their strategy—we decided to share the ones we hear most frequently below.
ClearPoint Strategy is designed to simplify this process by providing a comprehensive platform that addresses these questions efficiently. With ClearPoint , leaders can automate data collection, customize reports, and gain valuable insights , ensuring their strategic plans are robust and adaptable.
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Here are the top strategic planning questions asked by leaders, along with our expert answers to help guide your strategic decision-making.
11 Common Strategic Planning Questions Asked By Business Leaders [With Answers]
1. what time frame should our strategic plan cover.
Your strategic plan should look as far into the future as you’re comfortable looking. But keep in mind, you need to be confident that your company’s environment will be stable during the period of time you choose.
In the 1980s, Japanese automotive companies were looking out 40 years into the future—but this probably isn’t realistic for your organization. Most companies feel comfortable with a three- to five-year strategic planning horizon so long as they review their plan on a regular basis.
2. Who should be part of the strategic planning process?
The strategic planner is typically the leader of this process. They will also need the help of a cross-functional team that includes members of the board or leadership, along with representatives from finance, human resources, operations, sales, and any other critical functions.
That said, we recommend not limiting the planning process to just senior management. If you want the plan to work, it must engage everyone to some degree. So while the leadership team may be more involved in final decisions, those decisions should be based on input gathered from managers and their teams.
What are their thoughts on the future of the business? What do they think your company is doing well, and where does it need improvement? What projects are people working on and how are those contributing to the big picture? Including this type of feedback in your deliberations is the best way to gain buy-in around the strategic plan.
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3. how often should we review progress on our strategic plan.
The frequency of plan review varies depending on the goal of the review:
- Monthly , to check progress on key themes or goals.
- Quarterly , to check progress for your entire strategic plan.
- Annually , to ensure your strategic plan is still valid (see question #3).
We recommend setting up these meetings at the beginning of the year to ensure you hit these cadences. At the same time, determine the appropriate participants for each and send out invites.
Monthly meetings might include a director from each department; quarterly meetings require a smaller set of leaders; and annual strategic retreats are usually reserved for the highest levels of leadership. Getting these meetings on the calendar early not only reserves the times, but also sets an expectation for preparedness.
4. When should we change or update our strategic plan?
As mentioned in #2, an annual review of your strategic plan helps ensure the key elements in your plan are still valid. If there’s been a significant shift in the marketplace, for example, you may need to reevaluate your high-level goals and objectives.
Or, you may need to add new projects, change or update how you’re tracking KPIs , or change your KPI targets. Periodic strategy refreshes allow you to keep the elements of your plan that are valid and adjust the parts that are not.
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5. do we need a strategic planning office.
Not necessarily. All organizations—even those with only two employees—need to spend time on strategy. If your company fails to prioritize strategic planning, it could get left behind during times of environmental uncertainty or in a tumultuous business market.
So while your organization may not be large enough to have an entire strategic planning office or department, you do need to ensure that at least one person in your company has time on their calendar dedicated to your strategic plan.
6. Do we have to use a Balanced Scorecard?
No. That said, the Balanced Scorecard has proven to be a powerful and time-honored way to plan and execute strategy. Regardless of whether you stick to the Norton-Kaplan methodology or use a variation, understanding the basic principles of a BSC—having clear goals, linking your projects to those goals, and setting up leading and lagging indicators—could help your strategy immensely.
And for any strategic planning model to work, you need to have the right goals and the right way to measure and achieve them.
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7. where do we start when it comes to devising a strategy.
Many companies aren’t sure how to begin developing a strategy—how do you see the best way forward? Here are two important questions to ask during strategic planning, both of which will yield important information that can help you chart a path:
Where are we now and where do we want to be?
As you get started with strategic planning, take the time to understand where you are now—your current business. Know the sales trends in every product/service area, the relative profitability of each of your products and services, the amount of money you have and will have/need in the foreseeable future, and your position relative to your competition, among other things.
And because strategic planning is essentially a roadmap for the future, you also need to clearly describe the ideal desired outcome for your business.
Project forward five years—what do you want your business to look like? The greater clarity you have about where you want to be at a specific time in the future, the easier it will be for you to create a great business plan, or blueprint, that enables you to get from where you are today to where you want to go.
What obstacles lie in our path, and how do we go about removing them?
Every strategic plan will face risks and potential derailments. Some of these risks can be foreseen (for example, the internal weaknesses you discover as part of a SWOT analysis ), while others cannot.
This is one of the most difficult steps in developing a strategic plan, but the long-term success of the company is worth the temporary discomfort of having candid conversations. Management teams should outline the known risks along with financial impacts, and articulate the mitigation plans to prevent or curtail them.
Sometimes, just identifying and removing one critical obstacle can turn your company into a more profitable enterprise.
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8. What is the difference between a strategic plan and an operational work plan?
- A strategic plan is built off a long-term vision for your company’s future. It typically looks out three to five years, involves your key goals, and is broad-reaching across your organization.
- An operational work plan tends to be an annual plan for a division or department. It is built with a budget in mind and lists the key activities you commit to executing in a particular year.
Linking your operational work plan to your strategic plan is the ideal scenario. That way, the issues your department or division is focused on for the year are in line with your strategic plan.
This approach also allows for each department to see how their efforts directly impact your strategic goals, which adds an invaluable motivational element.
9. How many measures should our strategic plan include?
At each level in your organization—the enterprise level, division level, and department level—we recommend having 20-30 measures. We’ve found that a number in this range helps each level stay focused on what’s important, and review key data in meetings without distraction or fatigue.
Of course, 20-30 measures in every division described above could leave your company with hundreds of measures, but don’t worry—the goal is never to review every single measure in the organization at the same time. You should plan on reviewing only the information critical to your strategy in your department or division every quarter.
That said, use common sense. If one of the measures at the division level above you or the team level below you is red, you might want to look at it before your review to make sure that it doesn’t impact your team.
10. How do we make our strategic plan flexible to allow for changes?
The best way to make your strategic plan flexible is to have a clear distinction between your goals, measures, and projects, as this enables you to make changes, additions, or deletions more easily.
Goals should be updated every one to five years, and measures should be updated every six to 24 months. Projects can be adjusted on a quarterly basis, with completed projects being rolled off and new ones added. At this time, you may also need to make changes to some aspect of a project, for example changing the end date or adjusting the budget.
11. How can we organize and track strategic planning information and data?
Your strategic plan should touch a variety of departments and divisions. Even if you’re extremely well-organized, keeping track of all the data coming from different individuals and in different formats is very difficult.
Some organizations attempt to use Excel or PowerPoint, but both of these tools fall short when it comes to strategy management. Excel was designed to track data, make tables, and run calculations, but it wasn’t designed to track progress over time, show qualitative analysis (comments), or link strategy elements together.
PowerPoint is great for creating presentations, but you have to build a new deck for every monthly meeting. If you plan to use either of these tools, you can count on putting in hundreds of hours per meeting doing manual calculations, formatting graphs, updating versions, etc.
Automating the process with software like ClearPoint helps tremendously and will, in the long run, save your company a great deal of time and energy. Tracking and reporting tasks that would otherwise take days, takes only minutes with ClearPoint .
Many of our clients have also found that managers are more inclined to stay on top of their metrics simply because the software is so easy to use. When you can produce more informative strategy reports in less time— and get people excited about metrics to boot—it’s a win all around.
What other key questions do you have about strategic planning? Contact us —we’d love to add your question to our FAQ list!
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What are strategic planning tools.
Strategic planning tools are methodologies and frameworks used to help organizations formulate and execute their strategic plans. Common tools include:
- SWOT Analysis: Identifies strengths, weaknesses, opportunities, and threats. - PEST Analysis: Examines political, economic, social, and technological factors. - Balanced Scorecard: T racks performance across multiple perspectives. - Porter’s Five Forces: Analyzes the competitive environment. - Growth-Share Matrix: Assesses the potential of different business units or products.
What are strategic planning models?
Strategic planning models are structured approaches used to develop a strategic plan. Common models include:
- Balanced Scorecard: Aligns business activities to the vision and strategy of the organization. - OKR (Objectives and Key Results): Sets clear, measurable goals and tracks their outcomes. - VRIO Framework : Evaluates resources and capabilities to achieve sustained competitive advantage. - Blue Ocean Strategy: Identifies new market spaces with little or no competition. - Ansoff Matrix: Helps plan growth strategies by exploring market and product development options.
How does strategic planning affect the productivity of a business?
Strategic planning affects the productivity of a business by:
- Providing Direction: Ensures all efforts are aligned with the organization’s goals. - Optimizing Resource Allocation: Allocates resources efficiently to priority areas. - Enhancing Focus: Helps employees focus on key tasks that drive success. - Improving Decision Making: Provides a framework for making informed, data-driven decisions. - Monitoring Progress: Regularly tracks performance to make necessary adjustments.
Why is strategic planning important in healthcare?
Strategic planning is important in healthcare because it:
-Improves Patient Care: Ensures resources are directed towards enhancing patient outcomes. - Enhances Efficiency: Streamlines operations to reduce costs and improve service delivery. - Supports Compliance: Helps meet regulatory and accreditation requirements. - Guides Innovation: Encourages the adoption of new technologies and practices. - Ensures Sustainability: Plans for long-term growth and financial stability.
What does strategic planning involve?
Strategic planning involves:
- Setting Objectives: Defining clear, achievable goals. - Environmental Scanning: Analyzing internal and external factors that impact the organization. - Strategy Formulation: Developing strategies to achieve the objectives. - Implementation: Executing the strategies through detailed action plans. - Monitoring and Evaluation: Tracking progress and making necessary adjustments to stay on course.
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Ted Jackson
Ted is a Founder and Managing Partner of ClearPoint Strategy and leads the sales and marketing teams.
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- Graduate School
40 Thesis Defense Questions
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Practicing answering thesis defense questions in a mock thesis defense is the best way to get ready for this challenging step in your academic career. Aside from knowing your research project inside and out, you must have solid strategies for tackling different question types and talking about why you chose your research topic. You might have already answered questions related to your research interests in your research interest statement and grad school interview questions , but now after years for in-depth study, it's time to really test what you have accomplished! Check out some of the hardest thesis defense questions below and read our expert responses!
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Article Contents 11 min read
What to expect in a thesis defense.
A thesis defense is your chance to demonstrate your in-depth knowledge and expertise in the topic of your research thesis. While you will be able to take charge of the narrative and present your research to those on your thesis committee, the professors will prod you to test how well you know and understand your topic. The questions are mostly open-ended and give you the chance to showcase your knowledge and understanding, as well as any future plans you may have regarding your research topic.
A thesis defense usually lasts between one and two hours, depending on the area of your research. It starts with you giving a presentation of your interest, findings, and conclusions. After you have finished, the committee members will ask you questions based not only on your presentation, but also on your written thesis as they will have read it before your presentation. Lastly, the committee might approve your thesis or suggest changes to your paper.
Preparing thesis defense questions requires you to start well in advance. While the duration of your thesis defense might vary as per your institution's requirements, the major idea is to defend your research. Thus, you should go about preparing for your thesis defense questions by taking the following steps.
Interested in a quick overview of the section below? Check out this infographic:
Re-read your thesis for clarity
Your thesis defense questions will be based on what you have written in your research paper. Hence, it is a good idea to re-read your paper. You should be clear on the concepts and understand your research well. It might have been some time since you would have submitted your paper, so a revision should be the starting point of your preparation.
Have an answer strategy and structure
Plan a strategy to answer the panel’s questions. Keep your answers direct, but elaborate on the research details wherever necessary. If you do not know the answer to a question, that is alright. The key is to be able to formulate an answer even if you do not possess enough knowledge to answer at that point in time. For instance, if a question is about the content of your research, you can say something like “I am not certain my research touches on the question you are asking, but my research has led me to Dr. X. Based his evidence, I would have to conclude that…” Having a strategy for answering even the most unexpected questions can be a life saver in these situations!
Most of the thesis defense questions can be easily predicted based on your research. You can prepare a list of possible questions when you are going through your paper. Getting to know the committee can help you in preparing better. Their areas of expertise can help you in determining what they might ask. Once you have a list of questions, you can start brainstorming how you might answer them.
Prepare your slides in advance
If you require visual aids such as slides, it is a good idea to prepare them beforehand. You can double-check the slides and make sure that your presentation will run smoothly on the day of your thesis defense. Make sure your slides are arranged in the correct order.
Attend a thesis defense of other candidates if it is an open event
If your institution allows it, you can visit a thesis defense of other candidates. This will give you an excellent idea of what you can expect in your meeting. If it is not possible to attend the event, you can speak to your peers to find out how their meeting went and what questions were asked.
Dress appropriately for your meeting
The thesis defense meeting is a formal event, and hence you should be dressed in formal clothes. While there are no strict dressing rules, you should consider it something equivalent to a job interview. Don’t just wear your T-shirt and appear in front of the committee. Your formal suit is a better option for the occasion.
Practice speaking for your meeting
Take your preparation to the next level by practicing your presentation. This activity will give you the confidence for the actual meeting and presentation. You can request your academic peers to help you out in the practice task. Based on their feedback in the mock session, you can improve for the actual session. Make sure to prepare well for the mock session as if you are preparing for the actual session. You can also practice your speech and body language in the mock session. If you used thesis writing services , these professionals would also be the ideal people to test you in a mock thesis defense – don’t hesitate to reach out to them again!
Sample Thesis Defense Questions and Answers
1. what is your research study all about.
In your answer, you should summarize your research in a few sentences. The question is simple but requires technical expertise for a better explanation of concepts. For instance, if you completed a thesis in an attempt to explain the constituents of dark matter in the universe and particle accelerators, you could frame your answer like this:
In this research, the different aspects of dark matter and its detection models have been investigated. The cosmic ray positron excess observed by the PAMELA detector has been discussed and explained through the construction of models of decaying dark matter. The cosmic-ray electron and positron spectra were studied assuming a general Dirac structure for the four fermion contact interactions of interest. A supersymmetric leptophilic Higgs model was constructed to explain the possible excess of gamma rays in the galactic center. Finally, by the use of Razor analysis, an improvement on the dark matter collider searches is considered.
2. Why did you choose this study?
This question requires you to answer what motivated you to pursue the study in the first place. Your answers could touch on your interests in the area of the study. For example, if you conducted a study called “Media Combat: The Great War and the Transformation of American Culture” then you can shape your answer like this:
The First World War (1914-1918) has always been a topic of fascination for me, and my prime interest lies in exploring the state of society at that time. I wanted to analyze the formation of a nationalized, wartime cultural apparatus during the United States' involvement in the war and how theatre and music transformed the relationship between the government and American citizens.
3. Why did you choose this particular title for your research?
The title of your thesis captures the main point of your research, which is why it is so important to use an appropriate title. Your committee will want to know how you came to the final decision of naming your work. For example,
I chose the title “Dark matter in the heavens and at colliders: Models and constraints” for my research thesis because my research attempts to explain the constituency of dark matter as it occurs in the universe. “The heavens” is another word for the universe. Dark matter can also be created in particle accelerators such as the CERN collider. I have attempted to provide an explanation for both of the cases through the use of models, along with describing the constraints which exist in the current times due to certain scientific limitations.
4. What is the scope of your study?
In your answer, you have to define the boundaries of your project and define exactly what you are studying. There can be several elements involved but you have to define the parameters that you have chosen to study. For example,
My study is on the efficacy of equity stocks in the US market. For my study, I have chosen 50 companies listed on the NASDAQ. You can review the names of these companies on page 5 of my thesis.
5. What phenomenon were you trying to understand with this research?
Describe the focus concept of your thesis in the answer. For example,
In our study “Motivation to volunteer”, we were looking to study the Theory of Planned Behavior by analyzing the behavioral and normative beliefs that influence attitudes and subjective norms.
6. Who will be most interested in your research?
You can talk about who may be affected by your research and the parties who can potentially benefit from the research. Take a look at this example:
My sociology thesis on “Impact of social media on youngsters” can be of interest to sociology academics, social media companies, education experts, and parents of youngsters in general.
7. Did your research questions evolve during the process? If so, how?
Often, qualitative research questions change over time with respect to the responses that you might get from your focus group. Or you might just change your question as you do lab research or general text research. You can describe the change to the evaluating committee. For example,
We started our study to understand the impact of the new public policy change on recycling of vinyl waste through installation of garbage bins specifically for vinyl products. However, after interviewing some of the respondents in the target community, we found that the rule is actually irrelevant to their behavior and thoughts because the percentage of vinyl waste in that specific locality was very low and it didn’t need the installation of dedicated bins for the purpose. Going by their frustrations with the current economic insecurity, our study evolved into the impact of costs incurred by public policy changes.
8. What gaps did you intend to bridge with your research?
Your research thesis must eliminate the present gaps in the concepts related to your subject topic.
The relationship between hard water and its effect on the size of the kidney stone is not clear yet, so we analyzed the mineral composition of hard water to determine its impact on the size of the kidney stone.
9. Why is your research significant?
The answer to this research question should outline the impact of your research on your field of study. You may talk about the new insights contributed by your research and its impact on society.
Through my study on “The effect of chamomile in reducing stress and promoting better sleep,” patients with insomnia and anxiety will be able to find alternative treatments without the use of medicinal drugs. The medical abilities of chamomile will promote the usage of ingredients in nature and will encourage the community to plant more herbs and trees.
10. What did you find in your research?
You may describe your research in a few sentences in this answer. For instance,
In our study on “Impact of artificial fluoride in water on the human body,” we found that excessive exposure to high quantities of Fluoride can result in tooth discoloration and bone issues in humans since it has neurotoxic qualities.
11. What research findings surprised you?
When you conduct research, you come across findings that you were not expecting earlier. If you had such an experience, you might describe the same to the evaluation committee when you answer this question. For example,
I was expecting that business promotion through social media would not be a good idea for rural enterprises in developing countries in my comparative analysis of the usage of traditional and contemporary marketing methods. But I was surprised to learn that 68% of rural textile businesses in Nigeria promote their products on Instagram.
12. What is the validity of your findings?
You have to talk about the conditions in which your research findings would be valid.
In my research, I have considered test anxiety to be involving both nervous system activation and negative thoughts. Thus, my measure of test anxiety has included the elements of both nervous feelings and negative thoughts, the conditions in which my findings are valid.
For example,
For studying the differential protein expression, its localization, and distribution at different levels, we used the method of immunostaining in our research.
14. What sources did you use for data collection?
You would have used several sources to search for data for your topic. You may elaborate on those sources. You might have referred to databases, content on the web, or even conducted primary research by interviewing prospects. Thus, you can talk about these sources. Refer to the following answer:
To understand the impact of the current tax regime on skilled workers, we interviewed 150 subjects in 5 months. Additionally, we referred to databases and scholarly works available by authors who had previously conducted such studies for previous tax laws and rates.
15. How can your research be put into practice?
This question talks about the practical implications of your research. You should talk about how your research is beneficial for society and how it can help in eliminating current issues.
In our research titled “Effectiveness of Meditation on Reducing the Anxiety Levels of College Students in the US,” we discovered that students who practiced meditation at least thrice a week were two times more likely to score better in their exams, owing to the positive impact of meditation. So, this research finding can help in the reduction of mental health issues among students. A suitable course of action would be to hold meditating sessions a couple of times a week.
16. How will your findings contribute to the related area of knowledge?
Our study on medicinal analysis of herbs conveys information about various medicinal benefits of chamomile in treating depression and contributes to the area of medicinal botany.
17. Did you experience any limitations in your research?
Our research on “Impact of smoking on β-cell function and risk for type 2 diabetes in US citizens” finds that smoking increases the risk of diabetes among smokers. However, smokers might be affected by some genetic conditions which can protect them from diabetes.
18. What sampling techniques did you use?
When conducting research, it is practically not possible to study the entire number of elements. So, you would be using a method to select a sample population.
In our study “Impact of consumption of soda on the health of teenagers in Corpus Christi”, we used area sampling to divide the city into several areas and then selected some clusters for our sample group.
19. What are the dependent and independent variables in your research?
In research, several variable factors impact your study. You can describe these variables. Independent variables have values which are not affected by other variables in your study. On the other hand, the dependent variables have values that change with changes in the independent variable. For example,
In our study on “Impact of online tutoring on test scores”, the independent variable is the nature of the classes i.e., online and the participants' test score is the dependent variable.
20. What areas do you suggest for further research?
As a researcher, you should be able to describe what further areas are open for research with the addition of your research to the field. This can act as a starting point for future researchers. For example,
In my research on “Effectiveness of Acetaminophen in treating sports induced injuries”, I discovered that administering Acetaminophen is not very effective for treating joint pains such as the knee. This further suggests measures for the regulation of Acetaminophen in the production of painkillers for body pain and the search for alternative compounds.
Practice Questions
After taking a look at the sample answers, now try answering these questions by yourself:
Do you have any closing comments? "}]">
After submitting your research thesis for evaluation, you have to appear before a panel of professors and present your work; afterwards, they will ask you questions about your research.
You have to plan and prepare for your thesis defense. Review your paper and anticipate the questions that the committee can ask. Practice with mock defense sessions using professional servicesand make improvements based on their feedback. Be prepared with a strategy for answering any question asked by the panel.
Your research thesis should be on a topic of your interest. Scan your course syllabus to find something that makes you curious. Or, you can even refer to your grad school career goals statement to review what got you interested in grad school in the first place. Shortlist a few topics and zero down to the one that excites you the most.
The first step in preparing for a master’s thesis defense is to revise your research paper and write down a list of questions that the committee might ask. Find answers to those questions and get ready for your presentation. Practice your presentation beforehand. Try to attend a thesis defense of other candidates to know what you can expect in your session.
You will get questions related to what you have mentioned in your research paper. The most common starting questions are “what is your research about?" and “what was your motivation behind choosing this topic?” Later on, the committee asks you more detailed questions on research methodology, literature review, study variables, research findings, recommendations, and areas of further research.
You can get help from a grad school essay tutor for your research thesis writing. They can help you in developing writing skills and reviewing your work. They can proofread your work and provide recommendations on areas of improvement.
You can include your research thesis on your grad school CV to show your practical knowledge and skills. You can add the details of the study in a separate section for research experience.
Immediately after the thesis defense, the evaluation panel will decide whether to approve your paper as submitted or request some changes, or reject it.
To pass a thesis defense, a majority of the panel members must approve the defense. In case of more than one vote against you, you can fail the thesis.
A thesis defense can last for two hours or longer, depending on your area of research.
Your thesis defense presentation should include the focus concept, findings, recommendation, and conclusion.
The contribution of your thesis towards your degree differs as per institution. You can refer to your course handbook for exact details. In most cases, the committee needs to approve your thesis for you to graduate from your degree.
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why did you choose this place for a research locale
BeMo Academic Consulting
Hi Jeff! Yes, this can also be one of the questions you are asked in a thesis defense!
That is good
Hello Eshetu! Thanks for your comment. Glad you found this helpful!
Very helpful
Thanks, Abel. Glad you found this helpful.
Helpful thank you.
Hi Lagat! Thanks!
As an 11th-grade student, I don't have any experience in thesis or research defense in general. Me and my groupmates will be conducting our research title defense next week, this is invaluable information for us. Thank you!
You are very welcome, Kate!
THANK YOU SO MUCH FOR THIS, I REALLY APPRECIATE.
Hello Stephanie! Thanks for your comment.
EMELDA NAFULA NYONGESA
This is a good guideline to post graduate students (Masters and PhD) CPA:Emelda Nyongesa
Hi Emelda! Thanks!
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6 Questions Every Business Plan Should Answer
Lay out your goals and a road map for achieving them.
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An actionable business plan is crucial, whether your business is brand-new or an established player in its field. A business plan is especially vital for SMBs, which often must contend with lower name recognition, fewer loyal customers and other typical business challenges. While it doesn’t guarantee success, creating a business plan with research and care can help a business prepare for any future uncertainties.
Entrepreneurs and small business owners must ensure their business plans address six primary questions. Thinking through these questions and developing potential solutions helps set up your venture for success.
What is a business plan, and why does it matter?
A business plan is a formal document designed to help you set achievable business goals and outline how you’ll accomplish them. The business plan should include various road maps dedicated to the following operational elements:
- Product creation
- Operational goals
A business plan is a valuable tool internally and externally.
- Internal business plan functions: Internally, a business plan helps align its decisions with an overall road map to help it stay on track. Businesses can also use road maps to help think through difficult choices, such as headcount decisions.
- External business plan functions: Externally, a road map is critical for securing funding from outside investors like angel investors . A business must demonstrate to investors that it has a solid business plan with achievable goals and a road map to success.
What should a business plan include?
Typically, a business plan should include the following elements:
- Executive summary. An executive summary highlights a business plan’s essential elements. Readers should be able to understand your business plan by reading your executive summary, even if they don’t read the rest of the document.
- Budget. A small business budget should include overall operational and personnel costs. Consider your payroll budget , marketing budget and other departmental budgets.
- Market analysis. A market analysis should include a thorough market assessment that identifies competitors, your target customer , customer buying habits, marketing demographics and what customers are willing to pay. A market analysis may include a competitive analysis that dives more deeply into direct and indirect competitors.
- Product analysis. A product analysis outlines decisions about optimal product pricing. While you want to sell as many products as possible, low prices can scare off customers and eat into your profit margins, while prices that are too high will have customers turning to your competitors.
- Marketing strategy. Your marketing plan should outline how best to market the business and its products or services. Consider digital marketing targeted to specific online and social platforms, email marketing and local marketing.
Business plans vary in length depending on your business’s size, industry and scope. An SMB typically has a shorter and more succinct business plan than a larger, established business that operates across industries.
Questions every business plan should answer
We spoke with six business leaders who shared their thoughts on the crucial questions a business plan should answer. Consider these six essential questions to optimize your business plan.
1. What is the competitive advantage?
Scott Locke, chair of the intellectual property department at Dorf and Nelson LLP, advises thoroughly researching copyright infringement issues when determining your competitive advantage.
“I always look for what will give the business a competitive advantage relative to businesses that want to offer the same or similar goods and services and an analysis of the competitive landscape,” Locke explained. “I pay particular attention as to whether there is valuable intellectual property, be it patents, trademarks, copyrights or trade secrets, that will serve as barriers to entry for competitors. Similarly, I like to see a discussion of the intellectual property of the most direct competitors and how the new business will avoid infringing on it.”
2. Is the business in a growth market?
Walter Recher, principal consultant at SmallBall Marketing, says your business plan should emphasize how you plan to grow your business .
“The key to any successful business is to be a growing company in a growth market. A business plan should articulate how the entrepreneurs will enter the market, apply their investment to prepare them to grow quickly, and participate in the expansion of an industry that is thriving, with a better-than-average growth trajectory,” Recher said. “As I have spent my career working for hyper-growth companies in rapidly expanding markets, a founder of several small businesses and adjunct professor of a course on entrepreneurship, this has been the common denominator.”
3. Will customers pay for it?
Andi Gray, founder and president of Strategy Leaders, advises examining the risks of entrepreneurship and determining what and how customers will pay for their products and services.
“When looking at business plans, I always want to know how the owners plan to get paying customers to engage at a fee and quantity that allows them, as owners, to be in business and sustain themselves,” Gray advised. “My frequently asked question is, ‘How do you plan to feed and clothe yourself, and where do you plan to sleep while you’re getting this venture off the ground?’ My hope is that it will cause the students to consider why they are planning to take the risks of entrepreneurship.”
4. How will the business be staffed?
Larry Holfelder, senior consultant at DJL Insurance Services Inc., emphasizes the importance of staffing considerations.
“In every business plan, I like to see the recognition of the need to cover and staff the production, sales and finance parts of the business. Roles should be established for the entity as if it were mature and successful,” Holfelder advised. “Multiple roles should be assigned at first, if necessary, and filled with the right people as the entity grows and the timing is right.”
Holfelder says thoughtful staffing coverage shows that the business owners are realistic. “I like to see that type of thought process because it shows me they recognize that they won’t be able to do it all themselves and that business success revolves around collaboration and management,” Holfelder said. “It also shows that they recognize their own limitations, their ability to focus on their strengths, and the need to bring in others who know what they don’t in order to reach the goals they envision.”
5. Is the product innovative?
Irwin Glenn, chief identity scientist at Hunova, stresses the importance of innovation and inventiveness as well as the team’s level of inspiration.
“Is the idea for the product or service innovative, a unique invention, or is the dream truly inspired? Glenn asked. “By innovative, I want to understand if the business plan is centered around a new twist on already-existing technology or services delivered in a new and compelling way. If inventive, can the idea be protected against new or existing competition? Finally, is the team assembled an excellent group that can’t be stopped from succeeding? Are they inspiring to me, each other, and their marketplace?”
6. Are the plans and goals realistic?
Charles North, former president and CEO of the Dutchess County Regional Chamber of Commerce, prioritizes a realistic business plan with reasonable expectations.
“I look for it to be a realistic business plan, not something that is pie-in-the-sky. I want to see reasonable expectations,” North explained. “I tend to look more on the conservative side, since I feel that is the safest way to go. The idea doesn’t have to be reasonable; the plan does. The idea can be anything.”
North also emphasizes the importance of sales forecasts . “I always look for projections on what the business will do in the first year, second year, third year and fourth year showing sales, expenses [and the] bottom line as the business progresses. Those assumptions have to be reasonable.”
How planning for success pays off
A great business idea is no guarantee of success, but a solid business plan is a way to start a new business off the right foot and prepare your venture for a lucrative future.
Business plans are a vital resource for businesses of all sizes. While business plans should, at minimum, lay out a series of goals and a road map for achieving them, a business plan should also help answer questions ranging from analyzing a business’ competitive advantages to considering if its goals are realistic.
If you think through these questions while creating your business plan, your business will be in a better position to achieve its goals and weather any challenges it may face.
David Mielach contributed to the reporting and writing in this article.
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8 Critical Questions Every Business Proposal Must Answer
Sooner or later you’re going to write a business proposal, either because someone asked for it, or because you want to make a persuasive case that leads to a sale. Where do you start? What should you include? What are the rules? Since one of the goals of a business proposal is to persuade a potential customer to do business with you, it is important that you answer all questions.
Notice I use the word "persuade."
Not only are you trying to drum up business by introducing yourself to potential customers, but you are also trying to make a first and last impression on your prospect. So you want to ensure the proposal does its job- acting as a formal and much more dignified selling tool.
Let’s First Understand the Basics
There’s a lot of confusion on what a business proposal actually entails, so before we get to the questions your proposal must answer, let’s first learn the basics of a business proposal.
A business proposal is a document sent to a prospective client, outlining the products or services you’re offering and explaining why you’re the best. At the bare minimum, its primary objective is to provide a compelling solution to a problem faced by a client ( https://www.inc.com/encyclopedia/business-proposals.html )
That being said, a successful proposal usually results in a contract. But because there is usually a significant distinction between a proposal and a contract, your proposal should be laid out in a question and answer format.
However, there is an exception. If your proposal is in response to an RFP or RFQ, it may contain formatting instructions that you have to follow. In this case, a question and answer format may not be practical ( https://www.clientpoint.net/types-of-business-proposals/ ).
Key Questions to Answer in Your Proposal
Writing a business proposal is easy- there are no set rules or pre-requisites for format, presentation, length or even subject matter. But finding the right answers to the right questions is critical if you want to attract sufficient attention from a potential client. We compiled a list of the typical questions your business proposal must answer:
1. Who are you and What Are Your Qualifications?
Go ahead, brag a bit- this is the section where you get to convince your potential customer that you are the most qualified person for the job. You can start by presenting your company and mission in a way that relates to your client’s needs. Feel free to include a brief story that will give your customer a feel for your brand and help build trust. The function of this section is to grab the attention of the customer so he will read the whole proposal and not just skip to the pricing details, like most clients do.
2. What Are the Client’s Problems?
The secret behind writing a winning business proposal is understanding what the customer’s problems are and offering the best solution to these challenges. This part is paramount because you cannot expect to seal a deal if you don’t know what the client’s problems are ( https://www.clientpoint.net/ultimate-business-proposal-checklist/ ). Most customers will decide whether they are going to read the rest of the proposal just by going through this section. So take this opportunity to show your client that you fully understand their needs and are aware of the issue they want to solve.
3. How Do You Plan To Solve the Problems?
This is the million dollar question your proposal has to answer. In this segment, you need to outline how you’re going to tackle the project from the beginning to the end. Get into the nitty-gritty of the steps you’ll take, highlighting anything notable that sets you apart from the competition. Ensure that you make it realistic with accurate statistics and sound projections, so the client knows exactly what they are agreeing to upfront. This section simply speaks into the details the project will be responsible for, and addresses each and every need in the most comprehensive way.
4. How Long Will Your Proposed Project Take?
Be clear with your prospective client, how long it will take for you to complete the project. Here, you should ensure that you set out realistic expectations so that both of you are on the same page right from the onset. While you might be tempted to underquote the time frame, it’s usually not a good idea. Don’t promise what you may not deliver. If you’re offering a product, time frames might not be applicable, so feel free to omit them. The format of a proposal is usually very flexible, so tailor it to suit your business.
5. How Much Will it Cost?
Cost is a fundamental component of your business proposal. In fact, it’s almost certainly what the client is going to spend most time combing through. How you outline this part depends entirely on what solutions you’re offering. An itemized fee summary may be sufficient if the solution proposed will serve for a short period; otherwise, a fee schedule for periodic milestones may be appropriate if the solution will serve an extended period. If there are any legal/contractual issues to be addressed, such as licensing or permits, include this information here.
6. What is the Return on Investment?
This is the section many people miss. Maybe, it’s assumed that the client will immediately see the return on investment, but that’s highly unlikely. A proposal is your final sell- so don’t be afraid to detail to your prospect what they have to gain by choosing your business. If possible, spell it out so that the client can fully comprehend how your solution will either make money or save money. Being able to demonstrate the return on investment adequately, can almost win you a deal majority of the time ( https://www.entrepreneur.com/encyclopedia/return-on-investment-roi ).
7. Who Will Work on the Project?
For you to clinch a deal, the people you plan to use cannot be left to speculation. This is the section where you get to some level of detail explaining the team members behind the project. Start by identifying each team member and writing a short resume for each. This will not only help the client know the team, but the individual members as well ( https://www.inc.com/geoffrey-james/how-to-write-a-winning-proposal.html ). However, be careful to keep the jargon to a minimum. You want the client to have a clear and concise document. Perhaps, the best way to present this part is to use bullet points.
8. What Is Your Company’s Experience with Similar Projects?
This is your final chance to leave your client with a testimonial from a customer who has had a favorable outcome with your solution. The good thing about testimonials is that they have the power to influence even the most hesitant customers. Let’s call them the trust signals of a proposal. With a testimonial, you have the chance to make a strong final impression on the customer. Not only will it double your chances of closing, but you can as well be prepared to make your potential client smile and then give you a call.
Happy proposal writing.
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10 Questions Your Business Plan Should Answer
Business plans kit for dummies.
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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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21 Questions A Feasibility Study Must Answer For Startups
A feasibility study is an important tool to test feasibility for a startup. It defines and tests conditions that influence feasibility of a startup. A feasibility study encompasses marketing, technical and financial components. For the lean startups, a feasibility study focuses on developing and validating the business concept (problem-solution fit), product-market fit and business model for scalability. For the marketing study, it will define market concept, strategy and execution metrics. The technical study will describe options of developing and delivering the right business values. The financial study will test viability of business and project financials. For entrepreneurial businesses, the feasibility study will mostly focus on answering key questions, which are related to business concept, customer validation and business model. In this articles, i will list key questions and guiding outlines that will be required for answering through a feasibility study.
Q1: Who is the targeted customer segments?
Information on customer segments will include:
- Category of customer segments as (business-consumer) and/or (business-business).
- Personal information( age, gender, location,..).
- Educational information.
- Professional information (their profession/job).
- Job aims ((what they are most trying to achieve in their life relevant to your business idea and can be classified as professional, social and emotional).
- Pains (undesired outcomes in doing jobs, obstacles and risk of failure).
- Gains ( Required, expected, desired and unexpected).
- Priorities (customer’s priority of listing for the jobs, pains, gains).
- Requirements to buy your product (design, function, price,…).
- Motivation and fear factors.
- Hobbies & interests.
- What makes them special and identifiable.
- Others relevant information to their decision to buy your product/service.
Q2: What is the target market?
A full description of the target market (or launching market) will be made including, main players & their market shares, existing products & services, selling prices, competition structures, market size, market growth, weaknesses, strengths and key issues for further consideration.
Q3: What is the problem?
The problem will be clearly defined including, what is the pressing problem that your invention (or product) will intend to solve? How the existing problem has been handled so far? Who are the main competitors or suppliers? What are the shortfalls with current suppliers? Why do you think that this problem is a pressing one for the target customers? Does this intended problem affect a large group of people and why? It is advised using the 5-whys techniques to dig the problem and better understand it. As for the problem testing, the study must show evidences on customers’ acceptance to the defined problem. Testing must show evidences that such problem is severe, affecting large group of people and require an urgent and quick solution.
Q4: What is the solution?
The study will explain how the project business will solve the pressing problem? What are the solution options, recommendations and justifications. For testing the solution, it is advised to transform the solution idea into a visible object such as, a sketch or a prototype, where stakeholders will have easy understanding and access.
Q5: What is the evidence for Problem-Solution fit?
The study will show evidences collected from the market validating the problem-solution fit. Test findings will be judged on its reliability and consistency prior to acceptance.
Q6: What is the unique value proposition?
Explanation will be made on why the project business can provide customers with a unique solution that other businesses (competitors) cannot do. Also, explanation will show details on why customers buy your product and not other products and what makes the project’s offering special and hard to imitate. The feasibility study will show the benefits of the project product and how it turns into value that a customer gets out of using the product. The study must show in quantitative way how project’s product benefit the customer as on to make him better, faster and cheaper. By doing this exercise, you will be able to easily convince customers to buy your product. This exercise will also helpful to further develop the product to better fit the needs of the customers.
Q7: What is the product’s specifications?
A full description of the product’s specification will be made including, benefits, functions, design, etc. It is advised that a product’s specification is transformed into a visible object such as, brochure, prototype, web landing page, enabling stakeholders to access and view. As for product testing, a prototype will be arranged and tested including, market test (customer validity) and scientific or laboratory test. The study must show reliable and consistent evidences for testing and approving the product by potential customers.
Q8: What is the evidence for product-market fit?
The study will show information with evidences on how the product’s offering (incl. specifications, value propositions, commercial offering, channel distribution) will be fit for the target market and requirements of the customer segments. The study must show reliable and consistent evidences that a large group of potential customers will buy it.
Q9: What is the distribution channels?
The study must provide full information on how to distribute and sell the project’s product or service to the target customers. Testing various distribution options will made with recommendation and justifications. Is it going to be through agents, distributors, direct or mixed. The key considerations for choosing the right channels are those related to the best suitable channels that fit the target customers, level of knowledge in the target market, dedication of sales, cost of distributions and others.
Q10: What is the revenue streams and plan for selling?
A full description on revenue streams and selling plans will be made including, how to sell the product (transactional or recurring), what is the pricing type of the product (license fees, leasing, product price,..etc), offered credit facilities, cash flow projections, selling plan, marketing plan & budget, sales projections and others. The study must show details on how to sell (capture values), monetize values and generate healthy cash flows. This section is strongly connected with viability of the project.
Q11: What is the competitive positioning?
The study will evaluate the competition structure at the target market and define the target competitive positioning. It’s importance derived from the fact that competitive positioning will be based on the competitive advantages that the project will be able to develop and pursue. To chart the competitive position, the study will need to define top two competitive bases or advantages( i.e. price and quality) and define the project’s level of offering for these two basis. These competitive basis are varied depends on the nature of the product, competition structure, customer priorities and others. The study must show reliable and consistent evidences on how well the project’s product meets the target customer’s top priorities. It will also explain how well the target customer’s top priorities are being met by the existing products in comparison with project’s product. The study will analyze whether the market opportunity chosen (product) fits well with both project’s cores and customer’ priorities. The study will chart the competitive positioning and show how the project’s product in comparison with other competitors will meet the customer’s top priorities.
Q12: What are the resources and plan for acquisition?
The study will explain resources required to create and operate the business. Resources are assets, human, money and intangible assets (patent,IP). The study will estimate the resources required and how to acquire them. The study will also explain partnership requirements, justifications and how to acquire them. Resource requirements will be estimated in terms of money to test the project’s operating cost, capital cost and viability.
Q13: What is the cost structure?
The study will explain the production cost (in terms of variables or fixed costs) to produce the set products. The study will also estimate the operating and capital costs and funding options. Projections of costs will be illustrated and funds. It will also estimate the cost of a product produced (£/ product), projection of production cost, classification of costs (variables and fixed), evaluate funding options, recommendation of funding option and justifications.
Q14: How to develop and capture the values?
The study will explain ways to create, deliver and capture the business value of the project including, getting enough funds, managing team, launching the business, executing marketing and sales strategy, developing customers, selling, generating cash flows and managing operations.
Q15: How to develop, retain and grow customers?
The study will explain how to launch the product, get the new customers, retain and grow them. The study should define key assumptions and strategies on how to achieve all of the customer relation deliverables. The key strategies to develop customers are increasing awareness, loyalty and growing customers. It will also describe tactics for each customer development strategy and metrics for control.
Q16: What is the investment cost of the project and how to fund it?
The study will estimate the investment cost of the project, including working capital and fixed assets, ways for funding, recommendation of funding and justifications.
Q17: How do you validate the business model?
- Identify key assumptions: Assumptions defined on the business model above will be the key subjects for validation. In addition to the identifying the assumptions, a criteria for approving the testing of each assumption should be roughly identified.
- Identify your next 10-20 customers: Identify at least 10 potential customers who fit the customer profile. Contact them to validate their similarity to your customer profile and evidence their willingness to buy your product. You will also interview them based on a set of questions & assumptions, collect their answers and to validate the assumptions of the business model.
- Test key assumptions: Decide on potential customers to interview and test your key assumptions. Set a plan for testing, conduct a test, collect information and analyze them. Based on evidencing information collected from the potential customers, assumptions can be validated and business model can be refined.
- Refine the business model: Upon the outcomes of the action 3 above, the assumptions of the business model will be removed and replaced with another set, modified and refined.
Q18: What is the Minimum Viable Business Product MVBP?
The study will provide information on the assumptions for developing a MVBP and test it before commercialization. The MVP should be defined, prototyped, tested and made it ready for the commercialization. The study must provide full information on MVBP and produce a full prototype showing the product’s specification, benefits and uses.
Q19: What is the financial projections?
The study must show the assumptions of the financial projection and figures for minimum 10 years term. Financial projection will include income statement, balance sheet and cash flow statements. The reliability and consistency of projections will be the basis for judging and acceptance.
Q20: What is the evidence of viability?
Financial viability tests will be carried out including, calculating the net present value NPV, internal rate of return IRR, payback period, financial ratio analysis and others. The reliability and consistency of viability will be the basis for judging and acceptance.
Q21: What is the implementation plan?
After successful completion of the stages: problem-solution fit, product-market fit and business model testing, the study will show the implementation plan, including:
- Manage team work: Form the founding team and distribute responsibilities and authorities. This also includes hiring key head counts required to successfully deliver the creation of business stage. This also includes appointing board of directors to advise the management of the business for the next levels.
- license and formalize the business: including the licensing, article of association and any other legal requirements to formalize and create the business. This also includes acquiring an office to manage the business.
- Raise seed funds : including evaluating the business and estimating the capital for the next phase. This includes approaching angel networks, venture capital and other sources to raise seed fund against the investment cost.
- Identify and communicate the business: including the vision, mission, goals, high-level strategy and the company & product market positioning.
- Arrange the business governance : where policies, procedures, work instructions and forms, including who and what to do to carry out the business activities are well defined.
- Articulate the business strategy: where mission, vision and strategic directions are well defined. Also strategic objectives, action plan and control are clearly defined.
- Business planning: Targets and actions plan and control are well defined over a period of one year.
- Budgeting: the budget required to carry on the activities of the business over a one year time will be arranged. It will also describe the funding options.
- Launch the business : including setting up a plan for launching the business and control of execution.
- Pilot commercialization : include acquiring the storage and production factory facilities or outsource production and pilot commercialization.
Call for Action:
You please feel free to feed me back with your comments and suggestions. Should you need a training or mentorship or advising assistance on your startup business, You please contact us. For more details, you visit our website http://www.growenterprise.co.uk .
Useful Links:
- Information Bank @ Growenterprise.
- Blogs @ Growenterprise.
- 10 Easy Steps to Start a Startup Business
- 8 Core Skills Every Digital Entrepreneur Needs
- Financial Skills Every Entrepreneur Needs
- Step By Step To Build Your Customer Development Model
- 3 learnt Lessons In Crossing The Chasm
- 9 Steps to a Successful Disruptive Innovation
- 5 Principles For Lean Thinking
- 8 Steps for a Customer Development and Lean Validation
- 20 Best Games For Teachning Entrepreneurhip
Prepared by Munther Al Dawood
Enterprise Development Services
www.growenterprise.co.uk
Reading, UK
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Business Plan | 60 questions to ask yourself
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Today, I will present to you the 60 good questions to ask yourself when creating your business plan . Here we go !
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60 questions to ask yourself to create a Business Plan
Find in this video the questions to ask yourself to make a business plan :
Below is the support I used for my presentation on the business plan :
So initially, to be completely honest with you, I didn’t necessarily want to write an article on business plans. The reason is quite simple. I’m not a big fan of business plans and I’ll tell you why.
In fact, 99% of business plans always have the same form, if we take a graph with revenue on the abscissa and time on the ordinate, we always go through the following phases: we are very poor at the start and afterwards as if by “magic”, we become very rich!
The question that arises is therefore that of the credibility of a business plan when creating a business.
Why does this simplistic approach bother me?
When you start a business, if there’s one thing that’s difficult to predict, it’s revenue levels. Simply because it is impossible to know in advance whether you will succeed in obtaining many customers or not, after how long, etc.
In other words, the only thing that we can predict more or less correctly are the costs, because with that, we can have a vision that is a little finer and a little more realistic.
On the other hand, for income, objectively, even if you base yourself on statistics, even if you base yourself on market phenomena or trends, these will always be big approximations.
This is why often when people talk to me about a business plan, I tend to take a step back and say to myself “Okay, what are they going to tell me now? “.
So why did I finally decide to write an article about it?
I decided to write today about business plans for a simple reason. I had the opportunity to read an article from Express Entreprise called “ Business plan, the 60 questions to ask yourself to develop it ».
And actually, I thought this article was really well done. For what ? Quite simply because this article allows you to ask yourself some really good questions.
Indeed, beyond a simplified curve as I was able to show you before, a good business plan or rather a good way of making a business plan, is above all the fact of asking the right questions, and therefore, to defend your project more effectively to a banker, a business angel or an investor.
These different questions will allow your investors, partners or financiers to see that you have understood all of the different parameters necessary to set up your business.
So, I decided to play the game as well.
The 60 questions I am going to ask myself and make sure to answer them for my business concern SEO advice .
On commence !
These 60 questions to ask yourself for your business plan will be organized into 6 main parts:
- Your profile
- The team you will form
- The commercial marketing strategies you are going to undertake
- Protect your know-how and your product
Find funding
I would like to make two comments before we begin the round of questions.
Obviously, certain questions will be more or less conducive to my activity. Indeed, to the extent that I am going to launch an activity in SEO consulting, do not be surprised if I quickly go over certain questions which will be more linked to industrial companies.
Second point that I would like to mention, the opinion or rather the perspective that I am going to give you will be perfectly “personal” and “subjective”. For example, in my current situation, I will not immediately need financing to start my business.
Indeed, I have personal resources and I am not going to spend thousands and cents in any case, so I am not going to call on a banker or an investor. Therefore, my perspective is going to be a little biased.
The objective of your business plan is to try to seduce, to show a “white paw” to an investor to try to convince them that you know what you are talking about, and you know in which direction your business is going.
Come on, let’s start!
First of all, we will talk about market-related issues.
A) The market
Having a good understanding of your market, the players and what your customer wants is essential. This is the first part, one of the most important from my point of view. So first question,
1) How big is your market? Is it local, national or global?
The size of the market is indeed important. Quite simply, because there are markets that are really small and where we can’t do much. Then, there are markets that are huge and sometimes that can be scary.
To the question, “Is it local, national, global?” “.
Objectively, if you start your company, don’t say to yourself from the start “I am a company that is global”. If you can become a “global” company, good for you. That’s really what I wish for you. The thing is, in the beginning, it never happens like that. We are in a local, national business, why not. But global, no.
We will try to take it step by step. For the size of your market, you can see this from the different types of statistical studies that exist in your sector or from your market research. Knowing that, this type of information, we must try to take it with a step back.
For what ? It’s good to have a view of an industry’s overall revenues. The problem is that it doesn’t really give you any indication of how and how many customers you will be able to convert. You just know that there is a market and you see that the trends are positive.
Now I will answer you in a concrete way for the SEO sector.
In SEO, the only numbers I have been able to find are industry-wide from a global perspective. In France in particular, I searched and I didn’t find anything in particular.
In any case, what I know will be more along the lines of trends . Unsurprisingly, there are more and more websites, on the one hand. On the other hand, companies are investing more and more money in SEO campaigns to improve their organic traffic.
Am I going to approach this from a local, national or global perspective?
So first of all, my business will be located in a very specific location, namely Paris. Therefore, I will make sure to find clients in Paris and its surroundings. Afterwards, the advantage I have with SEO is that it is an online business. So, I will have the possibility of doing some of my activities remotely. For example audit or even consulting activities.
As long as I have information like Google Analytics or Google Search Console, I can work from just about anywhere. So initially, it will be from my point of view, local and national.
The world, why not? You have to have ambition, that’s for sure, but it’s clearly not the priority. If at any given time growth is strong from a local and national perspective, why not consider something else. But right now, no.
Afterwards, you also need to know if the content and services that I offer are likely to be of interest abroad. I think so. But in all cases, we start “small”, we start local, potentially national. The world in a second phase, but not immediately.
2) How many customers can you expect?
When you are going to start your business, it is important at the outset to gauge how many clients you can hope to get.
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Obviously, when you start your business, the number of customers most of the time is zero, and that is completely normal. Little by little, you will succeed in having customers, succeed in convincing them, etc.
Knowing that my activity will be SEO consulting, the objective will be to give the maximum added value to my clients to try to have a true qualitative approach .
What does it mean ?
This means in concrete terms that I initially aim for between 1 to 5 clients per month.
Why am I sure of this ratio?
Because I could have said 20 customers. The problem is that in fact if you have 20 clients from the start, and only one person takes care of them, the quality will inevitably plummet.
With my agence SEO , I do not want to tend towards a low-end service, but rather towards a service that is mid-range initially, to have low prices and customers who are interested. And little by little move upmarket. So between 1 to 5 SEO clients, that seems good to me to have a qualitative approach.
3) In this market, is there a shortage or excess of supply?
Indeed, there are very competitive markets where there will be a lot of people, and others, much less competitive, where there will be very few people. Therefore, if you have a particular skill that is in high demand, good for you.
This means that you will succeed in obtaining significant growth for your activity and your business. Knowing that competition, or having for example an excess of supply is not always a problem in itself.
I will have the opportunity to say this again in other questions that follow. But in essence, if there are people in a market, that most of the time means that there is income in that market. Therefore, you have the opportunity to create a business in this market.
Always be careful of markets where there are no people. If there is no one, it is either that everyone has missed out, so it is a golden opportunity, or it means that there is not necessarily any money to be made in this sector.
In SEO, there is neither shortage nor excess of offers. I would say it’s really somewhere in between actually. There are very good freelancers, but also very good agencies. So I don’t think we are in a sort of excess offer in terms of SEO advice. There is, but I think there is enough space!
4) Can new players appear in the short term?
Sometimes, it happens to find markets in which players are there historically. So, if you want to enter this market, it will be possible, but it will be more complicated. So it will depend on your sector, your products, your service, etc.
Regarding SEO, my answer is clearly yes. I think new players may appear. Currently, there are no dominant players to speak of. There are some very good actors, but none who are particularly above the rest. Regarding the barrier to entry, we will say that it is relatively low. So yes, there is the possibility of new actors appearing.
5) Is your activity BtoB (business to business) or BtoC (business to consumer)?
Depending on your business, your activity will tend towards BtoB or BtoC, and of course between the two, the approach will be radically different. In BtoB, you will contact professionals.
In BtoC, it will be for consumers. We do not approach consumers and professionals in exactly the same way. So, be aware of the nature of your audience. In this way, you will be able to adjust your communication, your marketing, commercial aspects, etc.
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In SEO, we are clearly in BtoB. Knowing that in the communications that I am going to make, there will be a large part BtoB and a very little bit of BtoC (for example on YouTube). But basically, the actual SEO consulting service that I am going to offer will be for professionals above all.
6) Is your offer in line with market expectations?
It seems logical, but sometimes we can miss the obvious. So take some time to look at what the competition is doing.
For what ? Quite simply because if you come up with a product or service that is not at all aligned with what your customer wants, you are not going to sell absolutely anything, and your revenue will be 0. Therefore, really try to know market expectations, so you will be able to offer an offer that will be adapted.
For my SEO business, I will ensure that the different offers that I propose are in line with customer expectations. There will be an SEO audit, “On Page SEO”, backlinks, etc.
7) What are your customers’ expectations? Are they loyal or captive?
Understanding and knowing customer expectations is absolutely crucial. For what ? Quite simply because when you start your business, you may have things in mind.
The problem is that between what you have in mind and reality, sometimes there is a sort of abysmal gap. Therefore, when starting a business, first of all, it is important to go see customers or potential customers, and ask them:
- “Concretely what do you want? »
- “How can I help you? »
- “How and what are the elements of added value that I will be able to give you? »
For SEO, the expectations are simple. Clients have one or more websites and want to get more organic traffic, that is, traffic coming directly from Google. This is what SEO allows. The other element that interests them will be the income linked to organic traffic. In other words, we increase organic traffic, as well as revenue.
SEO also allows you to do this. And that will be part of customer expectations. Others SEO KPIs can also be interesting, such as the return on investment of an SEO campaign.
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This is indeed a question that investors can askFor example, if I invest 1 euro, how much will come into my pocket after this SEO campaign? 2, 3, 4, 5…, 10 euros?
Then, the other element: are the customers loyal or captive?
Indeed, it will be important, because some clients will be difficult to obtain because they are very loyal, for example to the SEO firm with which they work. And others much less. For example if they use freelancers.
Knowing that this is an example. I could very well have said the opposite. There are freelancers who are exceptionally good at what they do. So we shouldn’t be caricatured at all about that. In all cases, be aware of the loyalty of your customers.
8) What are the customer benefits of your product or service?
When you are going to offer a product or service, customers must buy it because they feel that there is some kind of added value or additional benefit compared to other products and services on the market. Depending on your sector and industry, these benefits may be different.
In SEO, the benefit for the client lies in having more organic traffic, and earning more money thanks to that.
9) Are you in direct or partial competition with an existing offer?
When you have more or less significant competition in your market, logically, it will be more or less easy to find your place. But to come back to what I said before, competition should not scare you at any time.
I know that when you are a new entrepreneur, you often say to yourself “Oh my! There’s competition, I can’t go there! “. Don’t take it like that.
Really consider the fact that there are people there as a real lever for growth. Consider that there is potentially money to be made in this market. Therefore, do not be afraid.
Is it going to be more complicated than a sector where there is no competition at all? The answer is yes “. But the thing is that sometimes, sectors where there is no competition at all can be explained simply by the fact that there are no profits to be made. So, don’t be afraid of the competition!
In terms of offers from an SEO point of view, services related to audit SEO , At “ On Page SEO » or to backlinks , are often the types of activity that are offered by companies in this sector.
10) Can you easily differentiate yourself and find a niche position?
When you start a business, try to start, if you have the possibility, in a niche, that is to say on a relatively small fragment of the market. For what ? Quite simply because it will allow you to become an “expert” on a very specific part of your market, and to satisfy your customers.
This is a good gateway to obtaining new customers. Then, when you have gained the trust of your customers, you can increase the services offered and grow your business little by little.
In any case, I advise you not to start in a huge market. Start small, with a service or something that will allow you to differentiate yourself.
At the level of the business that I am going to launch in SEO consulting, the differentiation will be at the service level. I will really try to highlight my service in order to be perceived as an “expert” company in “On page SEO”.
This is one of the things I really want to be defined on, an axis on which I really want to focus on to succeed in convincing my clients.
So this is one of the differentiating aspects, and this is my niche part. Afterwards, there will perhaps be developments. We will see how things will evolve.
In terms of differentiation, there is also another element on which I think I can distinguish myself. This is about creating my content. There is already a lot of SEO content out there. And content is crucial.
Obviously, people who work in SEO know how important it is. So I’m going to try things a little different way.
This will notably involve the type of content, for example videos YouTube . I am also going to make a particular effort in terms of my blog, my articles, and the visuals. I really want to make a significant effort to show future customers what my company is capable of.
11) How many years of experience do you need to be credible with your customers?
There are sectors where experience is a determining criterion. So, if you don’t have 10, 15, or 20 years of experience, it’s going to be very problematic for you. In SEO, experience is important, but you don’t have to have been in this industry for many years.
For what ?
What you need to understand about SEO is that it is a sector that evolves quickly and regularly. In other words, from the moment Google makes algorithm changes, each time it involves a new way of doing things, because the way of doing SEO evolves radically.
So years of experience, why not. But the real criterion from my point of view, to choose the right SEO company, will be above all to know which company is the most up to date on the latest developments which impact the algorithms.
Ultimately, it will be about its ability to evolve over time, which from my point of view is the most important element. For example, if a person who has 15 years of experience in SEO, does SEO as on the first day 15 years ago, I can assure you of one thing, it is that at present , it clearly doesn’t work anymore.
12) Who are your competitors?
Take a little moment to try and see who the different players are in the market. It could be something important. Afterwards, you have to know them, but you shouldn’t be obsessed with what they do either.
Otherwise the only mistake you risk making will be to reproduce a pale copy of the original, which would be a shame. So you have to keep an eye on the competition, but not be obsessed with it.
SEO is a market where on the one hand there are, let’s say, SEO agencies which are structured. From my point of view, there is no actor that particularly stands out from the others, even if there are very good agencies that already exist.
This is the first part of the market. And on the other side, there are the freelancers. Just like with agencies, there are freelancers who are extremely good, others who are not necessarily exceptional. So we can say that there is a sort of duality, with freelancers on one side and agencies on the other.
13) Does your know-how give you a real advantage?
Indeed, there are skills that are extremely rare and which will allow you to have a real advantage. For example, if you are an exceptional craftsman or if you have special know-how. Therefore, you will get a definite advantage to complete a mission that is difficult to do by others.
Speaking of SEO, I think there are several things that I think I have an edge on. These include “On Page SEO”, where I have the opportunity to bring a lot of things to the market. There are others, but at the moment, it is mainly this aspect that I wish to highlight.
14) Where is added value created in the sector?
Knowing where the generation of added value takes place in your industry is an important element to know, because it will be a criterion which will intervene on several elements, including the definition of price levels. For example, if you have an activity that does not create a lot of value, that means that in terms of price, it will be difficult to offer high prices.
The added value in SEO really comes down to the ability to grow a website in terms of organic traffic and increased revenue.
15) How do prices change?
In some markets, price fluctuations can be considerable. Therefore, it is important to know the specifics of your market in relation to this.
Take for example the milk market. Without surprises, you will experience world prices with incredible price changes. So depending on your sector, you may be enormously impacted by price changes.
In SEO, there are global trends in the market, with average prices for services. Afterwards it is negotiated, depending on the customers and the type of service that you are going to offer.
In the same way, I will set prices on the business that I am going to start. To the extent that I am in “start-up” mode, I cannot afford to arrive with what are called eccentric prices, that is to say very high or the highest on the market.
When you arrive in a market, you must first have your first customers, satisfy them and ask for a recommendation. So, subsequently, I could gradually increase my prices if I wish.
So these will be prices, let’s say at the market average, or even a little lower even, just to try to be as attractive as possible initially.
16) Will regulatory changes make it more expensive to start a business?
As I had the opportunity to tell you in the introduction, there are questions that will not necessarily be conducive to my activity. Maybe this will be the case for yours.
Indeed, legal changes can sometimes impact the launch of a business. Therefore, if you are in an industry prone to regulatory changes, I advise you to monitor developments regularly so as not to be caught off guard.
To my knowledge, regulatory changes have no impact on SEO consulting.
17) Who are your suppliers? Are there many of them? Concentrated?
In SEO, there are no direct suppliers per se. But if you are in the ready-to-wear sector, for example, having suppliers who are concentrated or not will play a huge role.
Because if you have problems with prices that are too high and there aren’t many people, that simply means that you will be able to compete. In the opposite case, if there is none, i.e. if the suppliers are concentrated, this situation will have a direct impact on your business. So knowing your suppliers well, understanding the very structure of the supplier market will really be relevant for your business.
18) Is it easy to change supplier?
This question has a lot of overlap with what I just said. Namely, if you have a problem with price or quality. You do not have to stay with the same supplier if you are not satisfied with them. This way, you can change it very quickly.
19) Will they have the power to influence the quality and cost of your offer?
Indeed, if there are not many suppliers and they offer you something that is not of good quality and at prices that are too high, you will have practically no room to negotiate.
This situation does not apply to SEO.[fusion_menu_anchor name=”B” class=””][/fusion_menu_anchor]
Now that we have completed this part on the market, we can now move on to the next one, relating to the profile of the entrepreneur.
B) The profile
Now, I will present to you the different questions relating to the profile.
Indeed, when you present your business plan, know that it is above all about you, just like business in general. Therefore, it is not surprising that investors are interested in what you have done in the past in order to understand your journey.
Sometimes, some questions can even go as far as personal life, as this is a relevant element for investors. They know that certain personal concerns can have a lasting impact on your business.
20) Have you ever run a business?
people who want to create their own company. Depending on your answer, investors or bankers will be able to assess the risk according to them.
In fact, investors have more confidence in people who have already managed companies. If you’ve never set up a company and this is your first, don’t stress out forever about it. There are a large number of examples where people who had never managed a company succeeded by becoming excellent leaders.
The best known cases, Bill Gates and Zuckerberg. But many others too. So for me, it’s not obligatory. It’s just a little extra. Some investors sometimes like to say that if the entrepreneur already has experience, it is more reassuring.
So, my answer is yes, I have already assembled boxes in the past. Some were completely wrong. So the objective is to try to capitalize on what did not work to ensure that the future succeeds.
21) Are you trained in management?
Same as the previous question. For me, being trained in management is both important, but not essential, if that is not your case.
If you have never studied management, business school or that sort of thing, and you want to set up your company, don’t hold yourself back for that reason. The fact of not being trained in management is a personal point of view after all, it is not the most problematic element.
Afterwards, on this subject, I have a slightly biased point of view. For me, management is not obligatory to learn in training or to attend business schools. In my opinion, most of the time, “management” is above all a matter of common sense.
Namely, are you able to put yourself in the shoes of others to understand what their interests are? What are its objectives ? What does he want to aim for? And many others. It turns out that there are people who are naturally good at management and who have never gone to school. Conversely, there are people who have gone to school or studied management, who find themselves at a given moment in a managerial position and are absolutely catastrophic.
For me, management is above all a relationship with people. Personally, I believe that there are many more management lessons in literature than in any other book that claims to teach you management. Again, this is my point of view, you don’t have to agree with me. So to the question, have I been trained in management? The answer is yes, I went to business school.
22) Can your family environment facilitate the realization of your project? Do you have the support of your spouse?
This question close to the intimate sphere can sometimes be disturbing. And yet, this is an extremely important and decisive point. For what ?
Simply to the extent that when you are going to set up your company, you will find yourself in the same situation as if you were creating a sort of boat to go to sea. Obviously, when you set up your company and especially for the first time, there is a tendency to really sway. There are doubts, uncertainties, you will have moments of loneliness and you will be afraid. In short, moments where you will feel alive. However, it is so difficult to start a business if you don’t have a family who supports you. It’s a kind of weight that we add to the boat and which can literally sink you.
Same thing with your spouse. It’s even stronger with the spouse. If you want to set up your company and your partner is not aligned with it, or is even formally opposed to it, it’s a really bad start! Because not only will you have to fight to exist as a business, but you will also have to fight in your home to show that your decision is the right one. So it’s very difficult.
On a personal level, does my family make it easier to carry out my project from a financial point of view? Let me be perfectly clear, the answer is no. I don’t come from some sort of upper middle class background. I’m going to start my business with my own finances, not asking anyone for money.
Is my family putting obstacles in my way when it comes to setting up my business? The answer is no. But there may be times when some members of my family are afraid.
Entrepreneurship ultimately also means knowing how to manage your own fears, managing the fears of others, and that can be a little more complicated. But over time, experience and confidence allow me to ensure that it is not a hindrance.
So my family doesn’t put obstacles in my way regarding that, but financially they don’t help me either. Especially since for the activity that I want to create, namely SEO consulting, there is no one in my family who has already set up companies in this field.
Then, in terms of support, I have Mariana’s support at 200%. At certain times, she will even help me with this business that I am going to start, particularly with all the design aspects linked to the brand identity. Mariana is therefore a support, and it’s a real pleasure to have someone who supports you on a daily basis because being an entrepreneur is difficult!
23) Do you know someone with whom you can regularly do update on the project?
Indeed, it is always a good idea to regularly take stock. It could be with a person in your industry, a person who has already set up a company in the same sector…
In short, different types of profiles, of people who will suit you, knowing that it is still better to make points with people who know your activity or people who have already set up companies.
If this is not the case, it’s a little more complicated in fact, because they will not necessarily, from my point of view, have the ability to really give you relevant advice for your specific situation. talk.
So, am I going to do it? In fact, the real people with whom I’m going to do the accounts, quote, is you. So you will watch my videos, you will see the evolution of my business, and regularly I will take stock. And why are points important?
Quite simply because it allows us to see what we have managed to do, and above all, what we will aim for next. So it’s a really good game to play. Afterwards, don’t spend 15 years there either. Spending time preparing for meetings to take stock when you are a start-up, when you are a large structure, is a little different. But when you’re a small start-up, you have to make points, but also not spend too much time on it.
24) Have you ever met an association of creators and support?
Indeed, if it’s your first time, it could really be interesting to join an association that will support you in creating your business. Knowing that in fact, it will also depend on another element, namely whether you are a solo entrepreneur or if you already have members in your team.
Depending on this, you will have to adapt your strategy. Because sometimes, when you start in entrepreneurship while you were in another sector, often in the end, you are not really competent as a business creator.
So this requires knowledge, sometimes basic knowledge, knowledge which can be of a human nature. In short, there are quite a few things to develop. And concerning myself, rather than very theoretical things, I prefer knowledge that is more pragmatic. After all, that’s my point of view.
So yes, I had the opportunity to go to certain support or creator associations in Paris, notably some which are quite large and well-known. I stayed there, but not very long.
To be honest, I only went three, four times to some of them. In any case, it was never really long term. Quite simply because in fact, I had the feeling that at certain moments, it didn’t help me move forward very much.
Once again, this is not a global vision that I wish to give. It’s mine. Simply sometimes, for example when I ask myself a question, I go on the Internet to find out, I watch videos, and in fact, that solves the point where I potentially have a problem or I wish to improve.
And the problem I find with associations is that they have so many things to deal with that sometimes, from my point of view at least, it’s a bit long, a bit theoretical. This means that in the end, it is added value that we lose, especially time. When you are an entrepreneur, don’t waste time!
25) Are you ready to make financial sacrifices?
Indeed, when you set up your business, and it is ultimately quite linked with the story of the spouses from earlier, the financial side will be something that you absolutely must discuss with your wife, or your man , never mind.
To set up your company, especially if you are in a position that is relatively comfortable, stable, if you have been in a company for a while and you have prospects, you do not necessarily pose any problems, the financial sacrifices you make, but not too much.
Also note that when you start a business, in general the income at the start is 0 and therefore, it can be complicated at the start to start your business. So what I advise you in relation to this is to really imagine what things or what activities you consider to be a sacrifice. The idea when you start a company is not to be frustrated.
Let’s say you love doing sports, gym, whatever, and that’s your passion. If ever when you set up your business, you say to yourself, ok to set up my business, I have to eliminate my sport or the activity that I particularly enjoy, you will end up being frustrated. So it’s not at all a good plan to do this kind of thing.
Try to think about things that don’t seem essential to you. And when there are some that really make you happy and you know that deleting them will frustrate you, don’t do it. Really, never delete things that will frustrate you because a frustrated entrepreneur is the worst thing!
26) What will your financial needs be in the coming years? (children / apartment)
We really get into the personal with these aspects. Indeed, depending on your business, you will have to give more of yourself. Let’s take the example of a Tech type business. The thing is, it requires R&D (Research and Development) for several years, before it starts generating revenue.
I actually mean that sometimes the personal calendar and the professional calendar can be a bit in conflict. When you have life goals, sometimes entrepreneurship involves shifting them a little. So you have to be aware of it to do things well. Then the third point is to form a team.
C) Form a team
This goes back to what I was saying earlier. You don’t build a business or an empire alone. We can start on our own, that will be the case for me. But the objective, of course, is to get people to join you to succeed in making your business explode.
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27) Can you rely on a close-knit, complementary, experienced team?
Indeed, when you start entrepreneurship, at least a start-up, having a team that is united is extremely important from my point of view. Besides, the experience will come. Even if you’re not the most experienced at the start, it doesn’t matter. From the moment you are united, it will fix a lot of things.
Obviously, if you complement each other that’s also very good. For a very simple reason. Sometimes we can be very good at certain things and very bad at others. Therefore, if you can bring together people who have different skills, this allows you to accelerate your business much faster.
For now, I am starting as a solo entrepreneur on this project, therefore SEO consulting. Knowing that obviously the objective for me will subsequently be to grow the company and to succeed in creating a complementary, united and experienced team, of course!
28) Are the key skills for the success of your project represented?
It’s a good question. Because if, for example, you want to get into technology and you don’t have any engineers on your team, it’s complicated. So, still have a minimum of key skills in the activity you want to get into.
Again, you don’t have to know how to do everything. But at least have good foundations or key skills in certain aspects. This is really important for your business. Personally, I have good SEO skills. On the other hand, one of the elements where I think I will have to find someone fairly quickly to help me is, for example, at the commercial level.
I can do things myself, but there are people who are clearly much better than me on this subject. So that will be part of my priorities.
Furthermore, you should not create positions just for the sake of it when it comes to training your team. Indeed, it is not uncommon to see in many young companies positions such as deputy director which increase costs, without being of much use.
29) Failing that, can you count on external skills?
In fact, the idea is simple. It’s just a matter of understanding what your state of mind is regarding the subject. And understand that if you don’t know how to do everything when you set up your company, that’s normal!
Nobody knows how to do everything. A business is not created like that. You’re going to have to have several types of people, several types of skills, and that’s how you’re going to grow your team and then succeed in the end.
So the fact of relying on someone outside or external resources, really take it into consideration. Don’t tell yourself, to launch my company, I have to know how to do everything. Otherwise it will never happen.
30) Are your objectives understood and shared by everyone?
Indeed, when you start a company and you are a team from the start, it is really important to share your objectives with the other members. For what ? Quite simply because if you don’t share your objectives, you will gradually realize that ultimately, you are not going in the same direction at all.
The problem in fact is that a start-up at the beginning, if it ever starts to have a little growth and two types of teams are formed, there will be one which will want to go in this direction- there, and the second in the other direction. And I tell you, it’s going to breathe fire!
So what you will obviously have to do is communicate as much as possible, see if everyone agrees with you. And if this is not the case, which may be normal, really try to separate yourself as quickly as possible from people who do not potentially share your goals or your vision. Because otherwise, it’s not going to do it. A concrete example.
If in your business, you are with a partner who wants to obtain money, let’s say extremely quickly, why not, it’s laudable, and your objective is to create a long-term business, which pays you money and will allow you to be satisfied over a long period of time, you clearly see that you are in opposition.
So gauge carefully, see everyone’s objectives and based on that, make decisions.
For example, I am a solo entrepreneur, I agree with myself, let’s say, in terms of my objectives. But really, the goal with my business, the business that I am going to create in SEO, is to try to set up an agency that will have a lot of authority in the coming months/years. Because the objective for me is to have a long-term activity.
I’m not looking for a first try where I earn money for a little while then, after that, I do something else and go off I don’t know where. So it’s really long term that I want to create. And that’s why my overall approach will always be long-term.
31) Have you planned to retain your key people?
Indeed, when you find people who will have the same objectives as you, people who will have important skills, what you will have to do is to succeed in keeping them.
It may seem trivial, but managing to retain key skills and people is essential for me. Maybe I have a vision that is a bit particular, but for me, a business is really, above all, about people. Above all, it is values that you will share.
Therefore, if you ever find people who are aligned with your objectives, your values, and who are effective, do everything to keep them.
So there may be several levers, but try to do your best to keep them. It can sometimes be through remuneration, through financial aspects, but it’s not just that either. There are many other aspects that will come into play.
In any case, it is above all a team story, a company that is being set up. And for now, I’m not going to paraphrase Bill Gates, but at one point, he told a story where he said that ultimately, what he did with Microsoft was not so much him, but the 20 first people who joined Microsoft at the very beginning.
And I think he’s absolutely right. Quite simply because a business at the beginning, if there aren’t the right people or if you can’t keep your key people, it can quickly get out of hand.
Then the fourth part, marketing and sales strategy.
D) Marketing and sales strategy
Marketing and sales strategy. I tell you, the articles that I will write will clearly be mostly about SEO, but there will also be some on online marketing. Quite simply because it is absolutely crucial.
So if you have ideas like “yes, marketing is good on paper, but hey here…”, you will have to delete them, because marketing is going to be really crucial. It’s literally the fuel for your business model.
32) Do you know what types of customers you are going to target?
Indeed, when you start your business or when you wonder how to make a business plan, it will be important to know what type of customers you want to reach out to.
In the context of SEO, to the extent that I am going to start, I will not be able to address point blank let’s say, to large companies, for example from the CAC 40. Large structures, clearly, it will be inaccessible.
Because what’s more, getting into the selection process is a whole lot of things and in any case, it’s going to take time. Therefore, the big boxes later perhaps, but not immediately.
Initially, what I will really focus on will be start-ups, especially those that have raised funds. Because they will have funding.
Also generally speaking, start-ups that are doing well and already have money that they want to invest in SEO to increase their organic traffic. Because I love start-ups and I think that even beyond SEO, I could give them a lot of advice.
The other element that I’m really going to try to focus on is going to be VSEs. Because they already have a successful business, but do not necessarily have Internet skills, particularly in terms of SEO. And there clearly, I can give them my expertise, I could help them increase their organic traffic. Basically, these are the two types of customers that I will prioritize.
Besides, why do you need to prioritize clients? Quite simply because at first, you started with very few resources. So the objective will be to try to allocate your resources, your time, as best as possible, to obtain clients who will potentially last in the long term. And this as quickly as possible.
That’s why it’s actually interesting to know from the start which types of clients seem to you to be the most affordable and, above all, those who will also allow you to have a significant margin. If we consider two customers, one with an average margin and the other with a slightly larger margin, prioritizing the one with the larger margin will be interesting, because it will allow you to have more silver. As a result, you will be able to grow your business even faster!
33) Is your market segmented?
I’ll take the example of SEO, it will be simpler. The SEO market is clearly segmented, I would even say almost fragmented, in fact. On the one hand, there are the SEO agencies themselves, for which this is the core business. There are several on the market, at least in France. And on the other side, there are, let’s say, freelancers. So there you have it, on one side there are the agencies and on the other the freelancers.
34) Have you defined priority targets?
This goes back a bit to what I said before. When you are going to get clients, really try to initially focus on those who are the least difficult to obtain, with the best remuneration, therefore the best margins for you from the start. It’s important to prioritize because it will allow you to accelerate faster.
35) Will you face a network of priority prescribers?
Right now, I don’t know anything about it, I don’t even know what a network of priority prescribers is. So sorry. If this ever concerns you, look, but right now I don’t know.
36) What are the commercial means to implement to achieve your turnover objective?
Indeed, I am going to mix commercial means with marketing. Of course, when you’re in a company that’s just started, you do absolutely everything. So all domains in quotes are mixed.
We are not in a big company, where there are people who do the commercial aspects, some the marketing and others the finance. There, as a start-up, you will do a little bit of everything. So the commercial aspects, I will mix them with marketing.
Basically for me, the right way to obtain new customers is with inbound marketing on one side and outbound marketing on the other. I’ll explain to you what it is.
Inbound marketing in a very simple way is when customers will come to you to see your business and use your service. Outbound marketing is when you are the one who contacts customers. So you understand that in terms of approach, they are two different things.
I am someone who believes enormously in inbound marketing . And SEO is inbound marketing. Content creation is also inbound marketing.
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The advantage with inbound marketing, it’s a huge advantage, is that when you start it and you do it well, it allows you to have customers on a regular basis, customers who will come non-stop. knock on your door asking you to work with them.
Outbound marketing is different. Because it is you who will take the time to pick up the phone or send an email. In short, prospecting to get a new client. So you should do inbound marketing from the start. And that’s exactly what I’m going to do. Because for me, that’s really the most crucial element.
![what are the possible questions in business plan defense what are the possible questions in business plan defense](https://www.twaino.com/wp-content/uploads/2021/12/6-Outbound-Marketing.png)
In summary, inbound marketing from the start, in terms of content creation, and in parallel a little outbound marketing, the first three months.
Outbound marketing can be useful, effective, but the thing is that inbound marketing, from my point of view, is much more powerful. And that’s why I recommend putting it in place from the start.
So here are the different commercial means.
37) Is your marketing process defined?
The answer is no, I don’t have a process per se. Maybe it’s already clear in your head.
Yes, I know roughly how I am going to approach a client. Most of the time when doing SEO, one of the good entry points is the customer audit. Because it will allow you to see what technical problems there may be on the client’s website and therefore help them quickly resolve them. Afterwards, why not sell another service, annexed to SEO.
So there you have it, my marketing process is at that level. But objectively, it would be worth exploring on my part.
38) How will you organize your sales force?
So there, it’s the same. I think it’s good to ask yourself this kind of question. In a structure, with a team of 2 or 3 people, everyone will do a little of everything at the beginning. Except if you decide from the start to split the tasks with a person who will only do sales. Since I am a solo entrepreneur at the moment, the sales force will be me.
39) Have you planned a forecasting and reporting system?
Indeed, when you start a business, when you start an activity, the idea will be to follow your information, financial or otherwise. So having a reporting system is important. I think I have good Google Sheet and Excel skills in general. So this will be the kind of reporting that I will do when it requires a, say, manual aspect.
But above all from an automatic point of view, to the extent that I am going to work on my site, I am going to use a system called Google Analytics, which can also be coupled with Google Search Console. It doesn’t really matter.
But basically, on Google Analytics, you will see the sources of your traffic, your income and all that. So it’s going to be extremely effective to have a reporting system.
40) Do you need a marketing function?
So for now, my point of view on the subject will be partisan. But I almost want to say that no matter what you do, no matter whether you are a plumber, a pastry chef, whether you are a consultant or whether you are setting up your own business, marketing is very important. And to show you, I’m just going to give you one item.
For example, imagine two people with the same skills, and wanting to enter the same sector. They have the same money at the start. It can be said that at this point they are identical.
Now one of them is going to have much more developed marketing skills than the other. I can assure you of one thing, it is that with equivalent skills, the person who is good at marketing will explode their business much more quickly than the other.
So really take that into account. Marketing is not something to be taken lightly, especially not today. After saying that, I’m also going to put things into perspective. Let’s take the same example. There are two people who want to create a business on the same activity. One of them is very good at his core business. The other no. The person who is not good at their core business is, on the other hand, very good at marketing.
What’s terrible right now is that the person who is not good at their core business, but good at marketing, will do better in the short term. In the medium to long term, it is the other who will do best, quite simply because word of mouth will work. And since its customers will be satisfied, it will increase its business.
What I mean by that is don’t see marketing as some sort of superfluous element. It clearly shouldn’t be. Right now, to create a successful business, marketing from my point of view is more important today than ever.
And tomorrow it will be even more so. You will perhaps say to me “From what you say, the form is more important than the substance”. The thing is that when you put together a box, the shape and the content must be prioritized. There is no form more important than the substance, or substance more important than the form. Both have to be good.
41) Have you calculated your communications budget?
Bankers may ask you this question. With the company that I am going to set up in SEO, I am not going to bring an amount of money strictly speaking. On the other hand, I’m going to spend some time there. Because communication is really important, it’s really crucial at the start.
So yes, I will spend time there. Budgetarily no, but it is possible at certain times that I use certain tools. Some of these tools will be free, others will be paid.
Don’t worry, I will have the opportunity to show you concretely how I do it.
42) What communication tools do you have?
I have already answered a little but indeed, there are tools which will be more or less important. Afterwards, I don’t know exactly which ones. Because depending on the business, there may be things that we prioritize more or less.
Depending on your sector, you can prioritize social networks like Instagram, for example, others prefer Pinterest, or platforms like Linkedin.
In short, depending on your sector, whether you are BtoB or BtoC, and what the customer expects, the tool will vary. So for me, this question is not very relevant.[fusion_menu_anchor name=”D” class=””][/fusion_menu_anchor]
D) Protect your know-how and your product
Sometimes depending on your sector of activity, especially if you do R&D, you will spend time doing research, which can be extremely expensive. And so that just means that in the end, you’re going to have to protect what you’ve done. Because otherwise, there will always be smart people who will be there to steal your technology. Or your know-how.
43) Can your technological knowledge be subject to legal protection?
Don’t take this lightly. If this is your case, take the time. It’s true that it’s not the most glamorous time when you’re doing entrepreneurship, but it’s really important to protect, legally in any case, your business, to avoid the slightest glitch afterwards. Because sometimes things can go very wrong.
44) Can your solution establish itself as a standard in the sector?
Yes. Indeed, the more innovative a solution is, let’s say, the more important it is to protect it. Simply because when you arrive on the market, you potentially explode what is being done, and that can create tensions among other players. So keep that in mind. And that’s all I wish you.
If you have a solution like that, I say congratulations. This is exactly what we should try to do.
45) Are you going to have to convince other technological players?
Yes. Of course, there are certain technologies that are ultimately combined with others. And the problem is that if these actors do not agree to implement your solution, well it will simply not be viable.
It’s not that it won’t be viable, but it’s that it will never exist on the market. So sometimes, there are certain sectors where it can be extremely decisive to check this type of thing.
46) Is your innovation at risk of being quickly outdated?
Again, this is not a question that applies to SEO at all. But overall, if you do research and development (R&D) for two, three, four years, and you finally realize that when you put the product on the market, 6 months later there is no longer anyone buying your product, it’s a shame.
So it’s true that technology is moving at such a speed today that sometimes it’s a little difficult to predict what the next move will be. But simply put, it’s better to say “stop” rather than launching into something that ultimately won’t lead to anything. Or something obsolete.
47) Have you quantified your R&D needs?
If you are in technology, R&D, you will have to quantify it. Your banker or your business angel will be interested in it.
48) Will your production tool initially be sufficiently calibrated?
I don’t really know how to understand this question. In any case, the interpretation that I make of it is that if you have a business, for example in ready-to-wear, and you have machines that create your items, your new products, well from at a certain level, your machines will reach a sort of limit.
So that means that potentially, you will have to invest again if you want to increase your volume. Knowing that in certain sectors, if you don’t reach some kind of critical mass, it’s not actually worth it. So okay, I don’t know if that’s the way I should interpret it, but that’s how I understood it.
49) Do you know how to arbitrate between internal production and subcontracting?
What I recommend to you, in quotes, is that depending on what you do, if you have a core business, a core activity, it must remain internal. On the other hand, anything that is potentially supportive, or anything that is not essential and does not directly intervene in your core business, yes, you can subcontract it. But obviously, the fact of internalizing things, the fact of subcontracting, generally, it’s a bit on a case by case basis. Business by business. You really have to ask yourself questions. And there is no obvious answer to these kinds of questions.
Finally, the last part will be finding the funding.[fusion_menu_anchor name=”E” class=””][/fusion_menu_anchor]
This is the moment where we will talk about finances and where your banker or your business angel could potentially challenge you.
50) What is your overall financial need?
In addition to your business strategy, you also need to think about the financing plan. In many cases, to start your business, you will need resources. So resources can be linked to debt.
But there may also be resources which will be linked to your equity, therefore for example to your money or your savings. You can also use what some call “love money”. Love money is simply asking for money from loved ones.
That’s basically it. So, understanding your financial needs is important because it simply prevents you from asking for too much when ultimately, you are not going to need as much. So there you have it, this can really be an important thing for bankers.
51) What distribution between equity and debt?
That’s important at the moment. Your banker will challenge you on the subject. If, for example, you were planning to take out a bank loan, putting 0 of your personal contribution, I tell you, there is very little chance that it will work.
I’d be really curious to know the name of the banker with whom it would have worked, since most of the time it doesn’t happen.
Investors always expect you, as a business creator, to put your hand in your pocket too. It’s a question of credibility. And they too, the investors, will say to themselves that if they lose money, you lose money too.
52) Is your business a consumer or generator of income?
There are ultimately businesses where, in terms of earnings, it will be complicated. If that doesn’t speak to you, I’ll give you examples.
Take for example the case of supermarkets. Supermarkets are types of business that have a positive WCR (Working Capital Requirement). This simply means that supermarkets will receive money from customers.
For example, when you go to the supermarket, you pay the structure directly for the different products you buy. So the supermarket receives the money immediately from its customer. On the other hand, the supermarket will pay its suppliers a long time later. It could be in 30, 60 days.
And what does that mean from a cash flow point of view? This means that we will always have a cash flow which will be positive. So the supermarket will generate income. This is going to be extremely interesting. And the bankers absolutely want to know it. For what ?
Simply because if it is the opposite and you are a consumer of income or in other words, you have a negative WCR, that will mean that it is your bankers who will finance your lack of cash flow. And overall, they don’t really like it.
The thing with this is that it will really depend on your type of business. Ultimately, there are very few businesses that will be extremely revenue-generating, like the supermarket. So, be aware of this, because cash flow is essential. This must be taken into account.
53) What will your cash flow needs be in the first year of activity?
As I told you earlier, cash flow is really important. Indeed, money in general is the sinews of war. I don’t plan to give you finance lessons. But understand, the issues around cash flow are important.
There will be many challenges. Good investors will really challenge at this level. Because if you don’t have cash flow, if you can’t generate cash flow, it’s going to be extremely complicated to make your business last over time.
Afterwards, there may be activities where the WCR is negative, say structurally. But in this case, you have to have financing arrangements and others.
54-55) What will be the collection time for customers? Could you provide payment deadlines from suppliers?
It goes back a bit to what I just said, with the supermarket stories. In fact, I took for supermarkets, the cases where the cash flow was positive. Let’s take a reverse case. Let’s say you want to set up a company, in ready-to-wear fashion for example. With ready-to-wear, you are going to need working capital from a structural point of view.
For what ? Quite simply because in fact, for a collection, between the start and the moment when your client will pay you, the time will be very long. The problem with that is that when you create your collection, you will request products from suppliers.
And these will have to be paid for. You can set deadlines with suppliers, but you will have to pay them at one point or another. Here, your suppliers will ask for their money before your end customers have paid you. So that will mean that you will be in the negative.
So. When you are a start-up or an entrepreneur in general, the ability to negotiate the payment deadline of customers or that of suppliers can be a kind of lever on which you can pull, to try to improve your situation by Treasury.
56) After how many months will your cash flow be positive on a recurring basis? ?
When I told you that cash flow is a bit of a cakewalk, we weren’t there yet. What does it mean ?
Basically, this means that there will be what we call in finance, cash flow tables, which will allow you to see when you are going to spend and when you are going to receive money. You will be able to make forecasts thanks to this. And above all, it will allow you to know how many months you think everything will be positive.
57) What is the forecast amount of your cumulative financing requirement before reaching the cash flow break-even point?
It’s the same principle. You are asked how long it will take you to be positive. Basically that’s it. And once again, where it is problematic, and I am not at all enthusiastic about it, is in terms of sources of income and forecasted income, when we are an already established company.
When you are, for example, a sort of large liner, it is possible to have forecasts on income. In any case, in a much more serene way. But when you are a start-up, it is absolutely impossible.
So, the problem is that we are always making big assumptions. Sometimes there are things that work well, other times not. And the only good way to do it is to test. That’s why I’m not a big fan of all this.
58) When do you expect to break even?
It’s the same principle. Break-even point, break-even point… This is the cream of business plans.
59) Is the profitability generated over a three to five year horizon sufficient?
Here we are on things that I don’t necessarily like with the business plan, but that you must do if you ever ask for money from a banker, the BPI (bpifrance creation) or whoever you want. Because once again, the profitability generated will depend on the income that you are going to set. And when you start a company, you never know how much income will come. Just because you look at the numbers from a statistical point of view and a global point of view doesn’t mean that’s going to be the case. So we are on something very nebulous from my point of view.
There you have it, we’ve gone around with these many questions that others will call checklist. It took longer than expected. I am sorry. The idea for me was to dig deeper into the topics to try to show you exactly what questions it might be interesting to ask when making a business plan. The questions I presented to you are much more relevant than a curve that always rises. This is what will allow you to finally ask yourself the really good questions that can be useful for your business.
So there you have it, thank you for reading until the end. From the next articles, we will get into the pragmatic and thatwill be, of my point of view, much more interesting for you and for me to show you all that.
1 thought on “Business Plan | 60 questions to ask yourself”
This was very helpful,and informative, especially for those that are new to writing business plans it makes it more understandable and practical
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Which States Improved Child Tax Credits and EITCs in 2024?
July 25, 2024
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Neva Butkus State Policy Analyst
During the almost-finished 2024 legislative season, four states expanded or boosted refundable tax credits for children and families, and the District of Columbia is poised to create a new Child Tax Credit. These actions — in Colorado, Illinois, New York, Utah, and D.C. — continue the recent trend of improving the well-being of children and families with refundable tax credits.
Two of these four states plus D.C. have credits that are fully refundable. When credits are refundable, households receive the full value of the credit regardless of how much they owe in state income taxes, meaning the credit can help offset the impact of more regressive taxes like sales and property taxes. This makes both EITCs and CTCs better at improving equity in state tax codes.
Colorado passed an expansion of its Earned Income Tax Credit that will bring its match to 50 percent of the federal credit for the 2024 tax year. Lawmakers there also created a new credit — called the Family Affordability Tax Credit – that will boost the state’s existing Child Tax Credit and could provide an additional credit of up to $3,200 per child in years of strong economic growth . D.C’s new Child Tax Credit of $420 per qualifying child under 6 will also be fully refundable. And Illinois created a new child benefit through its existing Earned Income Tax Credit that will boost the credit for EITC-qualifying families with children under 12 years old.
Utah expanded its nonrefundable Child Tax Credit to include four-year-olds (it previously cut off once a child was over three). On the administrative side, Minnesota lawmakers built out the structure to provide periodic payments for the state’s historic Child Tax Credit passed in 2023. Additionally, New York is providing a one-time boost to its Empire State Child Tax Credit for 2024.
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For nearly 40 years, states have used EITCs to boost the economic security of low- and middle-income families. States only began administering CTCs in 2006 when New York created their Empire State Child Credit. After the federal expansions of the EITC and CTC in the American Rescue Plan Act expired in 2022, many state lawmakers took the future of these powerful poverty-reducing credits into their own hands. Since 2022, 12 states plus D.C. have either created or expanded CTCs. And 17 states plus D.C. have created or expanded EITCs.
As state Child Tax Credits and Earned Income Tax Credits increase in popularity, lawmakers have also merged these two policies to create more impactful credits. In recent years, we have witnessed this in states like Washington and Minnesota. Washington is the first state that has no income tax but has passed an EITC — but unlike traditional EITCs, it has no income phase-in. In 2023, Minnesota lawmakers restructured their EITC – known as the Working Families Credit – so it could better couple and phasedown simultaneously with the state’s new CTC.
This continued in 2024 as Illinois passed a new child benefit boosting the state’s Earned Income Credit for households with a child under 12 by matching the state credit at 40 percent (the match will be 20 percent in 2024 as it phases in). Conversations are still ongoing in many states on merging their credits. For example, New York lawmakers have considered merging their Empire State Child Credit and EITC in a way that better targets the lowest-earning families while also ensuring no family is penalized by the changes.
Another noticeable trend this year was movement on Child and Dependent Care Credits (CDCTCs). This is a nonrefundable federal credit that reimburses families for a small portion of their childcare expenses; some states offer either a refundable or nonrefundable match of this credit. This year states such as Kansas, Colorado, and Wisconsin expanded their Child and Dependent Care Credits.
Often conversations about CDCTCs and CTCs went hand-in-hand. But despite their similar names, the CDCTC and CTC are very different policies. While CTCs provide low- and moderate-income families with a larger tax return that allows them to make their own spending decisions, a CDCTC is essentially a reimbursement for childcare expenses already paid. Most families claiming the CDCTC must also make enough to afford childcare in the first place while a CTC gives families unrestricted dollars to be spent on childcare or other needs.
Refundable credits such as EITCs and CTCs make our state tax systems more equitable, build stronger communities, and help families afford necessities. Lawmakers in Colorado, Illinois, New York, Utah, D.C., and the many states who have created and expanded these credits in recent years know these credits are a proven investment in their state’s workers and families.
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These three local eitcs are boosting family incomes at tax time, our taxes can set kids up for success, three things to know this tax filing season.
- There's no one-size-fits-all solution
Key strategies to tackle your student loans
- Get creative & stay motivated
How to Pay Off Student Loans Quickly: Tips for Success in 2024
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate student loans to write unbiased product reviews.
- Paying off your student loans quickly starts with a thorough, well-researched budget.
- Private loans often charge higher rates than federal ones, so you may want to pay those off first.
- You'll free up cash to pursue other financial goals when you pay off your loans early.
There's no one-size-fits-all solution
Paying off student loan debt is a significant milestone. It's an accomplishment that frees up hundreds of dollars in monthly budgets for many borrowers.
However much you owe, paying it off quickly may offer peace of mind and the room to pursue other financial goals. Here's what you need to know about how to get out from under your student loan debt fast.
- Your debt amount matters: Small balances vs. large sums require different approaches.
- Interest rates play a role: High interest rates demand aggressive tactics.
- Income: Your earning power dramatically impacts how fast you can repay.
Budgeting is your foundation
The path to paying down your student loans starts with a budget. Mark Reyes , a certified financial planner with the personal-finance app Albert, recommends the 50/20/30 budget , where 50% of your income goes toward your essentials, 20% to your savings and investing, and 30% to whatever you want.
Begin this process by making a spreadsheet on your computer, using a budgeting app , or trying out a budget worksheet from a student loan company like Sallie Mae.
"Know who you owe and how much you owe," says Rick Castellano , spokesperson at the student loan company Sallie Mae. "It sounds simple, but that's one of the first things that we talk to students about. When it's a federal student loan, that means knowing who your federal student loan servicer is, and that can change from time to time. That'll help you to build the strategy around paying it down faster."
Attack high-interest debt first
When deciding between prioritizing your federal or private student loans , Reyes recommends the "avalanche method." With the avalanche method, you make minimum payments on all of your debt and then focus any extra money on paying down your highest interest rate debt.
Private loans often come with higher interest rates and with fewer protections, so in many cases it makes sense to pay them off first. For example, the interest-free repayment pause on federal loans during the pandemic provided a good opportunity to pay down private loans — which continued charging interest — more aggressively.
On the other hand, any payments on federal student loans made during the payment applied directly to the balance, potentially reducing the amount of interest you pay over the life of your loan by hundreds or even thousands of dollars.
Reyes says you should make sure you have paid off all of your so-called toxic debt with high interest rates such as credit cards and personal loans before making substantial payments toward your student loans.
"A lot of folks get kind of fixated on just becoming debt-free and don't realize that there's good kinds of debt, and then there's bad," Reyes says. "Making sure that you prioritize paying off your toxic debt first is always a great sign to make sure that you know you're healthy enough to pay off your student loans."
Reyes also suggests building an emergency fund to cover three to six months of your essential expenses. This can help protect your finances if you lose your job, face a large medical bill, or incur other unexpected costs. You'll have a safety net to fall back on instead of having to take on high-interest credit card debt or a personal loan.
Make extra payments whenever possible
You may also consider starting to pay off your student loans while in school, an option some students might not know they have. A recent report from Sallie Mae finds that 56% of families are making student loan payments while in school, which helps save on the overall cost of the loan.
"If you're a current student and you want to start making payments now, you can definitely knock out some of the principal and make small payments to make sure that the interest doesn't accrue," Reyes says. "That way, you're taking actionable steps to lower that debt."
There are many pros to paying down your debt quickly, including the freedom to take your money and put it somewhere else, Castellano says. It may help you accomplish other financial goals and achieve financial independence, he says.
Many of the clients Reyes meets with at Albert talk about feeling like their student loan debt is never going to end, which takes a toll on their mental well-being. Reyes says paying off student loan debt early helps free borrowers of the emotional burden that accompanies it.
"If you can get the win of paying off your student loan debt, it encourages you to realize, 'Oh, what else can I do with my finances? What other financial goals may I be able to achieve?,'" Reyes says. "Maybe I can afford that house. Maybe I can get this car. Maybe I can get my credit score even higher now because I know that I can accomplish this."
Get creative and stay motivated
Paying off your student loans early frees up cash in your budget that you can then reallocate to other financial goals. You'll also lower your debt-to-income ratio, which you calculate by dividing all your monthly debt payments by your gross monthly income. The lower this ratio, the more likely you are to get approved for a loan and for better terms.
You may be able to start putting extra money toward your retirement savings once you pay off your student loans, setting yourself up for future financial success.
Castellano emphasizes that trying to pay off your student loan debt fast shouldn't come at the expense of ignoring other financial obligations. High interest credit card debt or a car loan may have higher interest rates than your student loan, so trying to pay off your student loan first might cost you more in total interest across all your debt.
Deciding how to manage your student debt depends on interest rates and your goals. High-interest debt might need to take priority. Consider consulting a financial advisor.
If you're looking for student loan forgiveness programs, explore options like Public Service Loan Forgiveness or income-driven repayment plans.
To calculate how long it will take to pay off your loans, student loan calculators can help. Experiment with different payment amounts and interest rates.
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Starting and building your own business can be overwhelming. And while many business owners cringe at the mere mention of drafting a business plan, it is a great exercise to get your business back ...
S adly, most investors don't read business plans. However, writing one is the only way you will be able to answer the following 50 questions which an investor will ask you: 1. What is the price of ...
6. What do you need to get started? For many potential partners and investors, this is the bottom line. All businesses have to start somewhere, but that starting line varies dramatically from ...
Four Questions Every Effective Business Plan Should Answer. By U.S. Small Business Administration. Published on December 7, 2021. Every successful business starts with a solid business plan. A business plan is a foundational document that lays out who you are as a company and where you are headed. It not only helps you set and track goals, but ...
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 ...
A business plan is a written document that clearly defines the goals of a startup or existing business and outlines specific methods for achieving these goals. An effective business plan acts as the management and financial blueprint for developing and growing your business. Your business plan needs to detail how your business will be ...
Why is the venture a good risk? 2. BUSINESS DESCRIPTION • What type of business are you planning?•. What products or services will you sell?•. What type of opportunity is it (new, part time, expansion, seasonal, year round)?•. Why does it promise to succeed?•. What is the growth potential?•. How is it unique? 3.
Jill Bigelow, PELV-ICE LLC: Every business plan should include the following elements: Problem being solved, addressable market size, team, marketing strategy, CAC (customer acquisition cost) if known, competition, financial slide (projections), Protectability/why your solution is better, the ask (what you are offering in exchange for investment).
8 Steps to Creating a Full-Proof Business Plan. 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.
How will you grow your business? Development strategy. Who is the Management Team? Resumes. 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. Loan. What is your financial plan? Gross ...
A good business plan gives you credibility and inspires confidence in your ability to implement business success. It helps you understand the competition. Crafting your business plan involves studying and understanding other players in the marketplace. This will put you in a better position within the competitive landscape.
Strategic planning affects the productivity of a business by: - Providing Direction: Ensures all efforts are aligned with the organization's goals. - Optimizing Resource Allocation: Allocates resources efficiently to priority areas. - Enhancing Focus: Helps employees focus on key tasks that drive success.
The questions are mostly open-ended and give you the chance to showcase your knowledge and understanding, as well as any future plans you may have regarding your research topic. A thesis defense usually lasts between one and two hours, depending on the area of your research. It starts with you giving a presentation of your interest, findings ...
Ten Questions Every Business Plan Must Answer. Are you getting ready to pitch investors? Then you need to make sure that your materials - your pitch deck, executive summary, and business plan - answer ten critical questions. Conversely, if you find yourself including a lot of material that isn't directly related to one of these ten ...
A business plan is a formal document designed to help you set achievable business goals and outline how you'll accomplish them. The business plan should include various road maps dedicated to ...
Writing a business proposal is easy- there are no set rules or pre-requisites for format, presentation, length or even subject matter. But finding the right answers to the right questions is critical if you want to attract sufficient attention from a potential client. We compiled a list of the typical questions your business proposal must ...
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.
A business plan is essentially a document that presents the entrepreneurs vision and execution plans with its associated risks and rewards for consumption of investors. The goal is to help investors assess the business and make an informed decision. It is essentially an analysis and communication tool for the entrepreneur to provide the ...
A feasibility study encompasses marketing, technical and financial components. For the lean startups, a feasibility study focuses on developing and validating the business concept (problem-solution fit), product-market fit and business model for scalability. For the marketing study, it will define market concept, strategy and execution metrics.
60 questions to ask yourself to create a Business Plan. Find in this video the questions to ask yourself to make a business plan : Below is the support I used for my presentation on the business plan : So initially, to be completely honest with you, I didn't necessarily want to write an article on business plans. The reason is quite simple.
Kaith: (Page 8) TIMETABLE, the company's timetable shows the process of our activity in making this business to be possible. Our very first plan is the start up idea of business planning, in the month of october, we came up with our business concept as well as the company's vision, after that, we conduct interview for initial preparation.
On Monday, Kimberly A. Cheatle told a House committee that she could not reveal — or did not know — key details about the attempted assassination of President Trump. Here's what was missing.
Ex-Secret Service agents explain how heat, staffing, and a focus on a nearby tree line may have cost time amid the Trump assassination attempt.
Four states expanded or boosted refundable tax credits for children and families, and the District of Columbia is poised to create a new Child Tax Credit. These actions — in Colorado, Illinois, New York, Utah, and D.C. — continue the recent trend of improving the well-being of children and families with refundable tax credits.
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The Sunday Read: 'The Kidnapping I Can't Escape' Fifty years ago, her father's friend was taken at gunpoint on Long Island. Then he went on with his life — and that's the part that ...
The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan ...
The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan ...