Only fools rush in
I came across some excellent questions you should ask yourself if you’re starting a new company. These questions will help you expose holes in your startup plan, and could keep you from “creating a better search engine”.
There are 25 total questions. Here are the most important ones:
- What unique service or product does your company provide to your target market?
- What exit strategy is planned – acquisition? IPO? What year? If an acquisition, to what kinds of companies? Whats the expected ROI to investors?
- What capital is needed now and later and for what purpose?
- Who is the target market and its size? What penetration is projected by what year?
- What revenue models and sources will create what revenue by Year 3 and Year 5?
- What are your margins, costs of goods, profitability model.
- How will you market your product, how much will it cost?
- How long will it take to get your product on the market
- Who are your competitors and what are your advantages over them?
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May 17th, 2008 at 7:51 am
Lame, #2 is exit strategy, if you’re thinking about that before going in, you’re going to fail because you aren’t passionate about the product. How about trying to make some fucking money, that’s what business is about afterall, not flipping.
May 18th, 2008 at 7:35 am
^^^You’re wrong you need to know all of your options before you get into something. Flipping is a business if it makes you money.
Besides being passionate about something doesnt guarantee business success. Id take due diligence over passion any day.