Small businesses have always been an economic engine in the United States, but in recent years entrepreneurship is growing quickly. The number of applications filed to start new businesses has surged over the past half a decade, according to the U.S. Chamber of Commerce. But starting a business is a big investment that comes with risks. The Bureau of Labor Statistics’ data suggests nearly half fail within five years.
Connecticut Small Business Development Center (CTSBDC) advisors are here to help aspiring business owners ensure they get started on the right foot and mitigate risk. If you’re an aspiring business owner, getting expert guidance can make the difference between failure and success. In addition to no-cost, confidential personalized advising services, CTSBDC offers a monthly “Starting a Business” workshop. Keep an eye on the News & Events page for the next one. In the meantime, there are a few questions every aspiring business owner should be able to answer in order to begin validating their idea.
5 questions every aspiring business owner needs to answer
- What problem is this business solving for others and why is it sustainable? Entrepreneurs need to be clear about the problem they are solving because a business only succeeds if it addresses a real customer need. This question forces founders to define their purpose, market fit, and long term viability from day one.
- How much and what kind of research have you done around your idea? Research helps prevent costly assumptions. By investigating the market, competition, customer behavior, and industry trends, entrepreneurs can validate whether their idea truly has demand. This question ensures that decisions are driven by data, which increases the likelihood of building a business that can actually succeed.
- What is the goal you hope to accomplish with this business? Clarity of purpose shapes every operational, marketing, and financial decision. Knowing the business’s core goal helps founders stay focused, set priorities, and measure progress. Without a defined objective, businesses often drift, making it harder to build momentum or communicate value to customers and partners.
- What is the financial goal you are seeking to achieve? A business must be financially viable, not just conceptually compelling. Setting financial goals helps entrepreneurs plan for revenue, expenses, pricing, and growth. This question ensures founders understand what success looks like in measurable terms and helps them determine whether the business can realistically support itself and its owner(s).
- If you need financing, have you saved the necessary 10–20% to put down, and do you have the creditworthiness required from potential lenders? Financing is often essential for starting or expanding a business, and most lenders require the owner to invest personal capital and show strong credit. This question ensures entrepreneurs are financially prepared and understand what lenders expect. Answering it early helps avoid delays, rejections, or unexpected obstacles when seeking funding.