So now you think you’ve got what it takes to be an online entrepreneur?

Now, ask yourself these 20 business questions to make sure you’re thinking about the right key business ingredients to start your new venture:

1. Why Do I Want to Start a New Business?

Is it just to make money? If so you may not succeed because making money from an online business does take some work. Now it is true some people get rich quickly with a great idea but still they all had to put in a whole lot of work.
Do I just want to have a hobby to make money from?
Will others support my desire to own a business or give me the time to develop it?

2. What kind of business do I want to start, is it realistic?

An online business?
Product based business?
Service based business?
There are a lot of types of business that you can setup, a couple of them are outlined above, and there are many more.

3. Who is my ideal customer, is there enough of a market?

You want to make sure that your customer base is large, or at least scale-able. If your customer base is small you may have trouble succeeding.

4. What products or services will my business provide, are the product or services needed?

Outline your product or service or if you have a combination of the two then outline their relationship. It would also be a good idea to define your products to your idea customers.

5. Am I prepared to spend the time and money needed to get my business started?

It takes a lot of work to start and run a business. Especially in the start-up phase. So do you have the time to devote to this, and if so is it enough time?
What will you live off of when you are starting your business? Is this a part time venture while you keep your day job, are you living off savings, or is your business being financed.

6. What differentiates my business idea and the products or services I will provide from others in the market?

This is what differentiates your business and answers the question of whether your idea is remarkable, noteworthy, or shareable.

7. Where will my business be located, in my home, or outside the home?

Whether you locate your business in your home or in a business office or retail location you should make sure you have an official place you work on you business.

8. How many employees will I need, and am I considered an employee?

There are a whole lot of other tax, regulations, and other things you need to setup if you decide you want to have employees. You should always consider yourself an employee and pay what you can to yourself. A regular salary will prove to the IRS that you are trying to run a business and not a hobby.

9. What types of suppliers do I need, what are the terms of doing business with them?

Starting a business does require a product or service, even if you are doing an online business that relies on advertising. Suppliers are necessary to provide business supplies, products or parts to make the products, and other services like affiliate advertising methods.

10. How much money do I need to get started and where to I plan to get it from?

Is your business going to require any start-up capital, if so how much, and how are you going to get it?
Are you using your savings, credit cards, or a family loan?

11. Will I need to get a loan and if so am I prepared to pay it back?

A business loan may be necessary for a franchise, restaurant, or other large business venture. Most loans require personal collateral and you should consider your ability to repay the loan. You can also look at other forms of financing.

12. How soon will it take before my products or services are available for sale?

Once you decide to start a business when will you launch date be? The shorter the start-up phase is the more successful the business may be.

13. How long do I have until I start making a profit or my first sale?

Every business should know their break even point. The point where they will start making a profit, and the income starts to exceed the expenses.

14. Who is my competition and how are they positioned in the market?

A wise practice is to know who your competition is and to outline their prices, know the keywords and advertising methods they use, and understand how they treat their customers.

15. How will I price my product compared to my competition?

Do you want to price yourself lower and get into a price war. Or add value and charge a higher price?

16. How will I set up the legal structure of my business?

What protection do want to have when running your business. A sole proprietorship does not offer the same protection as a LLC or Corporation. So you will need to decide what the legal structure of your business should be.

17. What taxes should I be aware of and need to pay?

You should plan on paying taxes, either a pass through tax if you have a LLC or a corporate tax for a Corporation. There is also a self-employment tax if you run the business through your own social security number. Then there is sales tax, payroll taxes and the list goes on. But dont worry it is all relative to the profits.

18. What kind of insurance do I need and how much?

A general liability business insurance policy is always a good idea. Buy as much as you can afford so you are protected.

19. How, or who, will manage my business?

Will you be the sole owner, will you be partners, or will you have someone manage the business for you?

20. How will I advertise my business or drive traffic to my door or website?

So there you have it, twenty questions you should ask yourself to make sure you are ready to start your business. So ask yourself these questions, write down the answers, and use those answers to plan, develop, and execute the perfect business for you.