what are the 5 questions a business plan must answer

The five questions every business plan should answer

'It helps you organize all your resources and align them to the objective of the company,' says the president of Ottawa-based of business advisory firm Kingsford Consulting

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A cottage industry has grown around business plan writing, as banks and investors want to see a business plan before parting with their money. Why? A business plan helps you define where to play and how to win in whatever market you’re in.

“It helps you organize all your resources and align them to the objective of the company,” said Andrew Penny, president of Ottawa-based of business advisory firm Kingsford Consulting. “It documents where you want to go and how you will get there and because you’ve documented it, you can see where the gaps are.”

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Brad Cherniak, partner at Sapient Capital Partners, a business advisory firm in Toronto, has provided his share of input on business plans as an advisor, investor and entrepreneur. He defines a business plan as a thought process. “It often gets confused with an information memorandum or bank/board presentations when raising money, but a true business plan is a different animal,” he said.

It’s also brief. According to Mr. Cherniak, it’s a negative to have an encyclopedic business plan because if it’s too big, it becomes a coffee table book and no one will want to update it. Its inversely proportionate to its usefulness. “A business plan has to be fluid. It should be regularly rewritten quarterly to semi annually, depending on the the stage of the company, without taking up too many resources.”

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The real value is in the writing of it. “It’s the logic test and has to tie to your financial forecast,” he says.

Mr. Penny agrees. “A business plan allows you to figure out the metrics to track progress. I recommend that every plan in addition to having financial goals should have activity-based metrics. For example, if your objective is to grow revenue to $500,000, you have to explain how you are going to do it. Then you can measure the activities and see what’s working and what’s not,” he says. “The other way, you only know that you did or didn’t meet your dollar goal.”

The five key questions a business plan should answer:

1. What is the problem you are solving and how big is it? “Explain the pain in the simplest language,” said Mr. Cherniak. “The corollary of the problem you’re solving is how big a market it will entail down the road. This is the first logic test.”

2. How specifically do you solve this problem? Who else is solving the problem and how do you differ from them? “This includes knowing where you are weak and being factual and thorough in identifying the competition,” said Mr. Cherniak. “It’s the most critical section.”

3. Who is your customer and how much are they willing to pay for your product/service? “This requires thorough analysis,” said Mr. Cherniak. “Show that you have done it before. Dissect and do forensics on current relationships to prove your hypothesis; one or two case studies is enough.”

4. How much will it cost to provide your product/service? This comes down to understanding and explaining the unit economics of a single customer versus multiple clients. “What you learn here will will dictate if business can scale,” said Mr. Cherniak.

5. How do others perceive your business plan? Once you’ve formalized your plan — which should take no more than 45 days because of the pace of change of business today — present it to an objective set of eyes. “If you have a board or an advisory committee, let them be your sounding board,” said Mr. Penny. “As entrepreneurs we tend to see things too narrowly. An outside perspective is helpful.”

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Remember, a well-crafted business plan can attract investors, partners, and customers. It can also help you anticipate challenges and make informed decisions. So, take the time to answer these questions thoroughly and honestly.

Finally, keep in mind that a business plan is not a static document. It should be continually updated as your business evolves and grows. By regularly reviewing and revising your plan, you can stay on track and ensure that your business is always headed in the right direction. With a solid business plan in place, you can confidently pursue your entrepreneurial dreams and achieve success.

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The Top 5 Questions Your Business Plan Should Answer

Whether you’re trying to reach a personal fitness target or want to travel across the world, a detailed plan is the main factor that determines whether you reach your business goal or not — when it comes to business, an effective business plan determines its success and future potential. 

But before you write a good business plan , it’s important to understand what the objective of a plan is. A clear and well-defined business plan will cover all the important milestones when you start your business and acts as a blueprint on which you can build, monitor, reflect and improve.

With that in mind, here are 5 questions every effective business plan should answer:

1) What Does Your Business Do?

This question is not as simple as it may seem. You need to really zero in on your niche so that customers know what to expect from your service. For example, let’s say you’re a tree surgeon looking to provide a standard tree-surgery service: pruning, hazard assessments, etc. But later you realize you’re capable of landscaping and designing gardens which could attract a bigger customer base and increase your profits. You have to now adjust your stance from “Tree Surgery Service” to something like, “Garden Designer and Tree Care”. Be clear in your definition in order to tap into your market effectively.

2) Do You Know Your Customers?

Imagine that a filmmaker was assigned to pitch a script to a studio. He wrote the script with expletives and violence galore, only to realize it was supposed to be a PG-rated movie. The studios will not be giving the green light to his hard work and instead, he’ll have to return to his desk to start over.

In business, if you don’t know who your target audience is, you’re in trouble. You’ll be left with a shelved product because you’re not calling out the right names! Knowing your market can help you tailor your design and product development to align with their specific wants and needs. Understanding your customers will also help you fine-tune your marketing strategy so that you “speak to them” in their voice. Always run a thorough marketing research strategy as you can never know too much about your customer.

3) How Will You Target Your Customers?

Unlike yesteryear, contemporary businesses can reach out to their customers in a variety of ways. Your business plan should outline the various marketing strategies and mediums through which you’ll reach out to your customers. You have an endless amount of options, including websites, social media (start-ups can get significant traction from social media campaigns), newspaper ads, billboards, signs, and posters.

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4) how will your business make money.

A lot of start-ups fail because they didn’t create a business model . An effective and clear business model tells you how your company will make money: the journey from product or service, to conversion. Your business plan should indicate the sources and manner in which your profits will be generated.

For example, astute hairstylists running their own salon will soon realize that they can boost their bottom line by selling the very products they use on customers. It’s a bit like an add-on to their conventional hairstyling service.

If you know exactly how your business is intending to make money, the chances are you’ll be more successful than an unsure entrepreneur.

5) What is Your Operating Budget?

The financial section of your business plan should outline some crucial numbers, such as your operating budget. Your operating budget will reveal how much it will cost you to run your business on a month by month basis, and how much your business should be earning in order to stay in line with your outgoings.

In order to conjure up a figure, you’ll have to decide on a number of contributing factors: where you’ll do business (location), what type of equipment you’ll need, the number of staff you’ll need to hire, a budget for your marketing campaign, etc.

If you can clearly answer these questions, then it’s likely you’ll end up with a valuable blueprint for running your business. And with 5.6 million registered SME’s (small to medium enterprises) in 2018, you’ll need to ensure your company follows a clear and effective business plan in order to stand out from the competition.

For further information and expert guidance towards getting your business off the ground, contact Mint Formations today.

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Rajesh Velayuthasamy

Raj co-founded Mint Formations with business partner Andy Tree in 2017. Mint formations is established to nurture small UK businesses and enable exciting new opportunities for quick growth. As a successful entrepreneur, Raj knows how to start and run a business. He currently resides as a board member of seven successful companies across the world. He is best known for founding Integra Global Solutions, specialists in robotics, automation, and business process optimisation.

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Five Critical Questions Your Business Plan Should Answer

If I may adapt a line from John F. Kennedy's famous 1961 presidential inauguration speech to make a point about business plans: Ask not what you can do for your business plan. Ask instead what your business plan can do for you.

Questions about pricing, hiring and other factors can crop up as a business grows. A detailed and often-revised business plan should help you answer them. Getting these answers can help you keep your long-term goals in mind when steering your company toward short-term milestones.

Here are five key questions and how your business plan should help you answer them:

1. Is my price right?

There are two essential components of pricing that should be included in your business planning:

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* Consider whether your price is in line with your message. If you say you offer a high-quality custom product or service, you can't post a low price without contradicting your own marketing message. You should set your prices according to the relative value you offer, or risk confusing your potential market.

* Your business plan should include your revenues and costs on a per-unit basis, your overall direct costs and overhead. These factors can help you establish the constraints related to making enough profit. You have to cover costs, which can include expenses beyond the direct costs of buying what you sell, such as rent and payroll.

Related : Three Ways to Raise Prices Without Losing Customers 2. Can I afford to hire?

Especially when you're running a new company, you might not be able to help thinking that hiring additional employees might help you with the mounting list of tasks that have to get done. What would happen if you hired an extra salesperson? Could an extra administrator solve some of your problems?

Go back to your business plan and determine what happens to projections if you add the extra salary and benefits. Guess whether the improvement in people power will add to your revenue, or cut costs.

Or perhaps you should consider hiring a contract worker. Of course, hiring someone is almost always cheaper -- but only if there is a long-term need that justifies adding the fixed costs. If it's a short-term need then the cost won't affect your overheard forever.

Either way, working those numbers won't eliminate the uncertainty but it can make it easier to understand the variables.

Related : How Entrepreneurs Can Lure Top Talent from Big Business

3. Am I implementing my strategy?

Test your strategic alignment: Do your milestones, spending for marketing activities and new product or service development, and related expenses show the same priorities that are reflected in your strategy? In my business planning coaching I've repeatedly run into client situations in which people say one thing in their strategy but do something different thing in their actions and spending.

For example, you say you're going to emphasize your extensive computer expertise in your strategy, but you pay your service staff below market rates. Or you say you're going to emphasize one side of your product line, but your advertising spending emphasizes the other.

4. Can I afford to relocate?

Sometimes new business owners need to relocate to help cut costs, or want to take better advantage of a prime sales area. If you need to switch your location, get back to your basic numbers and break the problem into its business plan parts.

Estimate how much more your monthly rent will be at the new location. Also estimate your moving costs, costs for fixing up the new location and costs of the business lost while you're absorbed in the move.

Then adjust your sales forecast to either add in the additional business you'd be able to do there or the costs you'd be able to cut. If you don't see enough long-term improvement, then perhaps you shouldn't move.

5. Am I stunting my own growth?

Go back to your business plan and give your assumptions a fresh look. Consider your target market and strategy, and add in your business offering and distinctive differences. Does your business offering match your market? Are you sending the right messages to the right kinds of people?

Related : Three Things to Keep in Mind When Scaling a Business Quickly Think about things you could easily add on to sell more per customer. Is there some low-hanging fruit you're missing? Maybe your restaurant customers, for example, want mugs, t-shirts or desserts. Maybe your computer services clients want automatic back-up services, or system upgrades.

Now look at marketing. Is your message changing enough to match changes in the market? Is your marketing mix adjusting to technology and media and social changes? What if you spent more money and time on marketing? Could you increase sales?

Your business plan isn't a static document -- it's your best tool for steering your business. Answering these questions periodically can help keep long-term goals in mind while you adjust your immediate steps and actions.

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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50 Questions Your Business Plan Should Answer

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 your product or service and why?

2. How much capital is required to execute your business plan?

3. How much is the company is worth?

4. What existing products/services does your company provide?

5. What is the use of the proceeds?

6. On a summary basis, what is the historical financial performance of the company (even if, and perhaps particularly if, you have no revenues)?

7. On a summary basis, what is the projected financial performance of the company?

8. What new products/services are being developed and when will they be ready for market?

9. What is the size of the market for your product in dollars?

10. What is the size of the market in terms of units?

11. How has the market for the product/service changed over the past 5 years and why?

12. How do you anticipate it will change going forward?

13. At what rate is the market for your product growing?

14. Is the competition highly concentrated or highly fragmented?

15. What is your distribution channel and why is it the best one?

16. On a broad level, what are the elements of your marketing strategy?

17. What does it cost to generate a lead, and what is the ratio of leads to sales?

18. What funding is being allocated to new product development from the financing and from ongoing operations?

19. How many potential customers have you talked to?

20. What are the gross and margins on your product/service? Why are they superior or inferior to a competitor?

21. What is your assumptions on the bad debt and collection period for outstanding receivables?

22. What are your working capital needs once sales take off and how will these needs be addressed?

23. What will happen to gross and operating margins as sales rise and why?

24. What percentage of your sales are recurring?

25. Who are your top five executives and what is their professional and educational background?

26. What regulatory or legal threats are present?

27. Are there international markets for this product and is the company positioned to take advantage of them?

28. Who is the largest competitor in your industry?

29. What criteria will be used to choose locations for geographic expansion?

30. How will you get this product into mass market distribution channels?

31. Is the product/service patented?

32. Who are your suppliers and or vendors?

33. Do you have more than one for each supplier/vendor of your basic raw materials or services?

34. What are your payment terms with vendors or suppliers?

35. What will cause gross and operating margins to improve as volume increases or decreases?

36. Where is the company located and how many square feet does it lease or own?

37. What is the length of the sales cycle?

38. How did you estimate returns and allowances?

39. How are sales personnel compensated? Incentivized?

40. What, as a percentage of sales, is the industry norm for R&D expenditures?

41. What is the earnings multiple of public companies like yours?

42. What is your immediate marketing objectives?

43. Does the company have a board of directors or advisors?

44. What is the ownership structure of the company? Who else is an owner?

45. How has the company been financed to date? What other financial transactions have occurred in the past?

46. Has the product generated any publicity? Where?

47. How old are the current liabilities on the balance sheet?

48. Who has prepared the historical financial statements and have they been compiled, reviewed or audited?

49. Is there any cyclically in sales?

50. What are the competitive advantages of your products?

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

David Evanson

David R. Evanson has more than 30 years working in the media, on Wall Street and in media relations. He has worked with investment banks, asset managers, private equity investors and institutional brokers on a variety of marketing and communications challenges. David is also a recognized financial writer, having authored five books on finance and economics, and articles in Barron’s, Forbes, Investment Dealers’ Digest, On Wall Street, Financial Planning and Entrepreneur, among others. David brings to the table a well-developed understanding of the capital markets, investments and corporate finance, and a talent for creating targeted media communications programs for financial services providers.

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10 Questions Every Business Plan Must Answer

Writing a business plan is not a make-work project for your business. It’s an essential tool you need to seek investors and gain financial support to help you grow your business faster. When done right, your business plan will guide you on your path to growing a scalable and profitable business.

Every successful business plan should answer these 10 questions:

1. What does your business do?

You may think you know what your business does, but you need to put it down in words. Think about the market need you’re solving or how you solve your customer’s pain points.

One of the best ways to do this is to write a vision and mission statement for your business. These will act as a guiding force to help you make decisions in your business. For example, if you decide to add a new product to your company, make sure it’s in alignment with these statements. If it doesn’t support your vision for the company or your larger mission, perhaps it’s not the product or service for your business right now.

2. How will you make money?

Do NOT forget about this part! It is a critical piece to ensure your business idea is solid and profitable. It’s also the section that banks and investors will be looking at very closely. If you want a profitable business, you need clearly defined revenue streams and projections.

This section will likely include product pricing structures, details of your income generating activities, remuneration summaries, financial statements to date, and financial projections for the future. Investors want this information so they can estimate when they will see a return on their investment in your company.

3. How will your business get started?

If this is the first version of your business plan you should detail everything you need to get your company launched. This may include things like:

• research and development needs
• market research and testing
• plan for setting up your website and online presence
• legal and regulatory requirements
• licencing and inspections

Each of these items should be given a timeframe and budget where possible. Include a little financial cushioning in your start-up budget because there is likely to be unexpected surprises along the way.

If your business hasn’t launched yet, use this section to outline how and when that will happen and what launch costs you’re planning for.

4. What is your operating budget?

This is the section where you will detail your month-by-month expenses for your business. You should be estimating and budgeting for every expense so you know how much revenue you need every month to break even or be profitable.

In this section consider:

• What equipment you need to buy vs lease or rent?
• What staff will you hire full-time vs outsourcing to consultants or other businesses?
• What are your fixed monthly expenses vs variable expenses?
• What are your costs for licencing and regulatory requirements?
• What professional services do you need to support you?

Be sure to consider all monthly or annual costs associated with running your business.

5. Who are you selling to?

Your business won’t last long if you don’t know that people need and want what you sell. In this section of your business plan, share what you’ve learned about your target market and client.

Get as in-depth as you can and include details like:

• What are the demographics of your target customer?
• How much are they likely to pay for your product?
• Where will they buy your products?
• What add-ons or up-sells are they likely to need/want?

If you’ve created any customer personas for your ideal clients, summarize them in your business plan. Depending on your business, you may have multiple customer types but try to focus on a core two-three maximum.

6. How will you market your business?

If people don’t know your business exists, how can they buy from you? You need to have a detailed plan for how you will reach your target customers. Most of your marketing is likely to be done online, so consult a marketing agency to get a robust online marketing plan outlined.

Here are some possible marketing activities you may include in your business plan as it makes sense for your business:

• create a website
• incorporate an e-commerce platform on your website
• post and interact on social media channels
• put ads in newspapers and magazines
• participate in industry trade shows and events
• host events or workshops

Every marketing activity is calculated to reach the right customers, on the right channels, at the right time. A marketing agency can provide some valuable insights on this for you, from a third-party perspective. You may also consider doing a survey of your target customers to learn more about them, including where they spend their time online or in-person. Use this information to target your marketing for a maximum return on your investment.

7. What is your USP?

Your Unique Selling Point (USP) is how you will stand out from your competitors. Competition in the market can be a good thing, as long as you have positioned yourself to offer something unique.

To find your USP, do some in-depth product and service research to learn more about other similar products or services on the market. When you find some look for this information about each one:

• How are they the same?
• How are they different?
• What add-ons or upsells do they offer?
• What’s their price point?
• Does their company have any values that stand out (like environmental awareness or charity involvement)?
• How do they sell?

Once you know what they sell, your job is to sell your product better than them. In your marketing, emphasize the benefits that relate to the uniqueness of your product.

8. How will you use your strengths and weaknesses to grow your business?

This is the question we dread in job interviews, but it’s imperative as an entrepreneur to answer this question in your business plan. In your plan, you’ll want to summarize the results of a SWOT analysis :

• S – Strengths: How can you capitalize on your strengths to capture new business?
• W – Weaknesses: Where is there room for growth?
• O – Opportunity: How can you turn your weaknesses into opportunities?
• T – Threats: What external factors threaten your business success and how can you circumvent them?

It’s ok to include your weaknesses in your business plan, as long as you can show that you’re working towards a future where your weaknesses turn into opportunities or new strengths.

9. What are your challenges?

No business is a straight path to profitability and success, but you can bend the path as straight as you can. In your business plan, do a deeper dive into the challenges you foresee in your business.

Challenges can come in many forms and may include:

• What if you struggle to increase your slice of the market share?
• What if you can’t consistently meet your monthly revenue goals?
• What happens if someone infringes on your intellectual property?
• How will you deal with potential bootleggers or forgers?
• What if you don’t meet regulatory or licencing requirements?
• What if you can’t find the right skilled staff you need?

For every challenge you foresee, create a contingency plan to minimize your business risk.

10. What are your goals?

What goals do you have for your business? To best measure your business success, create SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) goals so you see how far you’re progressing. These goals could relate to anything including business growth, revenue, customers and sales, marketing campaign results, and number of internal hires.

Make sure that any goals you set align with your vision and mission.

How to start your first business plan

Make sure that your next business plan can answer all these 10 questions. A well-written, honest business plan can help guide your business to profitability and attract investors to get you there faster.

To get started, contact our team today and we’ll be in touch to discuss the specifics of your business plan that will answer these 10 questions!

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6 Questions to Ask Before Starting a Business

• 14 Jul 2020

If you’re considering starting your own business, you’re not alone. Between 2020 and 2021, more than 838,000 new businesses were founded in the United States.

Being an entrepreneur has many perks, such as setting your own hours, the flexibility of where you work, and the satisfaction of building something from the ground up. Yet, there are also some drawbacks as the chances of success aren't guaranteed. Half of all startups fail within five years of being incorporated.

Entrepreneurship is the pursuit of opportunity beyond currently controlled resources. When you hear the word “entrepreneur,” you might think of Apple’s Steve Jobs, Microsoft’s Bill Gates, or OWN’s Oprah Winfrey, who each saw a need in the market and filled it with an original product or delivery system. Their respective businesses have not only been successful, but changed the landscape of their respective fields—from personal electronics to digital media. Each took risks and were met with immense rewards, but not all entrepreneurs are so lucky.

So, what does it take to be a successful entrepreneur ? In the online course Entrepreneurship Essentials , Harvard Business School Professor William Sahlman warns against falling back on stereotypes, noting that great entrepreneurs can come from a diverse range of demographics.

Although there’s no single characteristic that makes a perfect entrepreneur, some common traits of successful ones include curiosity, adaptability, decisiveness, and innovation.

Aspiring entrepreneurs who possess these characteristics should take note of their personal goals and create an effective business plan to achieve them. This type of foresight is incredibly helpful when launching any type of business.

What Makes A Successful Business?

Behind every successful business is an idea that solves a problem. This means that from the earliest stages of the process, entrepreneurs must be aware of their target audience and the needs the product or service will fulfill. This takes the guesswork out of future marketing strategies since the mission of the business is clearly defined.

Another element to a successful startup is the support of experienced business counselors. Starting a new business is no easy feat, which means guidance from skilled individuals who have launched and run companies can be invaluable. You can seek out these professionals through various networking opportunities, such as entrepreneurship counseling or the HBS Online Community , or find a mentor within your existing professional network who can give you insight into the market.

It’s also crucial to choose your business partners wisely. Find individuals who share the same vision and possess strengths that complement your weaknesses. It’s not enough to be friends with your business partners; you must define the expectations you have as a team from the start and be equipped to solve disagreements in a productive way. One way to lay the foundation for a strong business partnership is by ensuring all parties have a clear understanding of what starting a business requires.

Is starting a business the right choice for you? First, be sure to ask yourself these initial questions.

Access your free e-book today.

Questions to Ask When Starting a Business

1. is now the right time to start a business.

Your idea may never take off if you try to start your business at an inopportune time. Are you currently in a position to pursue entrepreneurship? Consider your relationships, financial wellbeing, and physical health. For instance, if you recently welcomed a baby into your family, you may not have enough time and energy to dedicate to the growth of your business.

On the flip side, perhaps you’ve recently been laid off from your role in corporate finance. This turn of events could spark an ambition that can be poured into starting your new venture, backed by your professional experience.

It’s also important to consider if the timing is right in the broader economy and the specific market you want to enter. You should ensure your offering meets a current need.

For instance, take the coronavirus (COVID-19) pandemic and the preparation to reopen offices. These unique circumstances have generated a need for companies to prevent the spread of germs and enforce social distancing, while allowing employees to work alongside one another. It’s an opportune time for someone who, for example, wants to produce and sell transparent cubicle partitions, because that product fills a market need.

2. Do You Have a Business Idea, and Is That Idea an Opportunity?

When starting your own business, you need to know what you plan to sell. If you haven’t fleshed out those details yet, brainstorm using the following prompts:

• Why does it take so long to ____?
• Why does ____ cost so much?
• Can I deliver ____ with a new business model?
• What can I change about ____ to improve it?

Your idea doesn’t need to be a new invention—it simply needs to fill an unmet need. If you have an idea for an original product, that’s great, but an improvement to an existing product’s cost, production, functionality, or accessibility can go a long way. Take Uber, for instance: Uber didn’t invent the idea of ride-sharing (taxis have been around since 1897 ), but it delivers the service in a new, innovative way.

You should also determine whether your business idea is an opportunity.

In Entrepreneurship Essentials , opportunity is defined as "a proposed venture to sell a product or service for which customers are willing to pay more than the required investments and operating costs." In other words, people must be willing to pay more for your offering than you’ll spend creating it.

To find out if your idea is an opportunity, first come up with a hypothesis. For instance, “I hypothesize that businesses would be willing to pay $150 per transparent cubicle partition.”

Next, test your hypothesis by conducting market research. Sahlman recommends reaching out to strangers from your target market segment, rather than friends, family, and colleagues, who may sing false praises. The feedback you receive can inform if your hypothesis was correct, or whether you need to test other hypotheses.

3. Are You Prepared to Pivot and Adapt?

Entrepreneurship is an iterative process. If you know that adapting to new information and pivoting when original ideas fall flat aren’t your strengths, develop those abilities before becoming an entrepreneur.

With your earlier hypothesis in mind, say your research tells you 75 percent of people you interviewed aren’t willing to pay $150 per transparent cubicle partition. Given this information, you need to adapt.

You test further hypotheses and discover the majority of your target segment is willing to pay the original $150 if the transparent cubicle partitions are both high-quality and easy to install and remove. This leads to the development of a new prototype, reassessment of the cost to manufacture, and another round of hypothesis testing.

The ability to adapt and frequently pivot, especially in the early stages of your business, is essential.

Related: Tips for Scaling Your Business

4. Do You Have a Strong Team, or the Ability to Form One?

No successful entrepreneur got to where they are by themselves.

“All great companies, even those with iconic entrepreneurs, had many other people who were involved and, without whom, the company might not have made it so big,” Sahlman says.

In Entrepreneurship Essentials , Apple is used as an example to illustrate the power of a team on a growing business.

“Steve Wozniak was the engineering genius behind the company’s early products,” Sahlman says.

Shortly after it was incorporated, Mike Markkula and Mike Scott joined as seasoned executives who proved themselves essential to the company’s growth. Steve Jobs, who had previously been forced out of the company, returned to Apple when it was on the verge of failure and revitalized its products. Without each of them, and countless others on their teams, Apple would not be where it is today.

If you decide to start a business, keep in mind that successful business owners know when to ask for help and delegate tasks. Whether that means starting your business with a partner or two, building a strong team as you grow, or simply accepting any help and advice you can, know that your potential success relies on the strength of the people around you.

Related: 10 Tips to Help You Boost Team Performance

5. Are You Prepared for the Possibility of Failure?

Entrepreneurs must be prepared for the possibility of failure when starting a business. In Entrepreneurship Essentials , Sahlman notes that 70 percent of businesses survive for two years, 50 percent last five years, and only 25 percent make it 15 years.

“Though every entrepreneur imagines success, they must act with the full knowledge that the odds are against them,” Sahlman says.

The very real possibility that your business may not survive is something you need to come to terms with before pursuing entrepreneurship, and you should have a plan for that scenario.

6. Why Do You Want to Start a Business?

As you consider starting a business, continually return to the most basic question: Why?

While only you can answer this question, understanding the relationship between risk and reward can help illuminate your motivations.

It’s the point where the potential of reward—whether that be pursuing your passion, becoming the next big brand, or filling the market’s need—outweighs the fear of risk that your entrepreneurial journey begins.

Ask yourself what you hope to gain from starting a business, and list the risks you anticipate. If the pull of potential rewards outweighs your fear of risks, it’s a good sign you’re ready to be an entrepreneur.

Are You Ready To Start A Business?

Asking yourself these questions can shed light on whether starting a business is a path you want to pursue. It can be a lot of work and come with inherent risk, but armed with informed decision-making , an innovative concept, a solid team, and a bit of luck, starting your own business can be an extremely fulfilling experience.

Are you looking to turn an idea into a viable venture? Explore our four-week online course Entrepreneurship Essentials and our other entrepreneurship and innovation courses to learn to speak the language of the startup world. If you aren't sure which course is the right fit, download our free course flowchart to determine which best aligns with your goals.

This post was updated on August 9, 2022. It was originally published on July 14, 2020.

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20 Business Plan Quiz Questions and Answers

A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business venture. It serves as a roadmap for entrepreneurs and stakeholders to understand the direction and viability of the business. Here’s an overview of the key components typically included in a business plan:

Executive Summary: This section provides a concise overview of the entire business plan. It highlights the company’s mission, vision, key objectives, and a summary of the proposed business model.

Company Description: Here, you’ll provide a detailed explanation of your business concept. Include the type of business, its legal structure, location, target market, and any unique selling propositions that set your business apart.

Market Analysis: Conduct thorough market research to understand your industry, target market, and competitors. Identify trends, potential opportunities, and challenges. Explain how your product or service will meet the needs of your target audience better than existing solutions.

Organization and Management: Describe the organizational structure of your business, including key team members, their roles, and relevant experience. Investors want to know that you have a capable team driving the venture.

Article overview

Part 1: 30 business plan quiz questions & answers.

1. Question: What is the primary purpose of a business plan? a) Secure funding b) Improve employee morale c) Enhance customer service d) Increase market competition Answer: a) Secure funding

2. Question: Which section of a business plan outlines the company’s mission and vision? a) Marketing strategy b) Financial projections c) Executive summary d) Company overview Answer: d) Company overview

3. Question: Which of the following is NOT a common business plan component? a) Competitive analysis b) SWOT analysis c) Cash flow statement d) Social media strategy Answer: d) Social media strategy

4. Question: What is the purpose of conducting a market analysis in a business plan? a) Determine the company’s competitors b) Develop financial projections c) Define the company’s mission d) Set employee goals Answer: a) Determine the company’s competitors

5. Question: Which section of a business plan highlights the company’s unique selling proposition (USP)? a) Marketing strategy b) Company description c) Competitive analysis d) Financial projections Answer: a) Marketing strategy

6. Question: What financial document shows a company’s revenues and expenses over a specific period? a) Balance sheet b) Cash flow statement c) Income statement d) Profit and loss statement Answer: c) Income statement

7. Question: In a business plan, what does ROI stand for? a) Return on Investment b) Revenue on Investment c) Risk of Inflation d) Rate of Interest Answer: a) Return on Investment

8. Question: Which business plan section outlines the marketing tactics to promote a product or service? a) Financial projections b) Market analysis c) Marketing strategy d) Company overview Answer: c) Marketing strategy

9. Question: What is a break-even analysis used for in a business plan? a) Identifying potential customers b) Calculating potential profits c) Determining the point of profitability d) Analyzing competitor strategies Answer: c) Determining the point of profitability

10. Question: In a business plan, what does the term “SWOT” stand for? a) Strengths, Weaknesses, Opportunities, Threats b) Sales, Workforce, Objectives, Technology c) Strategies, Workflow, Operations, Targets d) Success, Wealth, Objectives, Tactics Answer: a) Strengths, Weaknesses, Opportunities, Threats

11. Question: What is the purpose of an executive summary in a business plan? a) Provide an overview of the company’s history b) Detail the company’s long-term objectives c) Summarize the key points of the entire plan d) Highlight the company’s competitive advantages Answer: c) Summarize the key points of the entire plan

12. Question: Which financing option involves giving up ownership shares of a company in exchange for capital? a) Debt financing b) Equity financing c) Venture capital d) Angel investing Answer: b) Equity financing

13. Question: What does the term “KPI” mean in a business context? a) Key Performance Indicator b) Key Profit Increment c) Key Planning and Implementation d) Key Personnel Improvement Answer: a) Key Performance Indicator

14. Question: What section of a business plan should discuss the company’s organizational structure and management team? a) Market analysis b) Financial projections c) Company overview d) Marketing strategy Answer: c) Company overview

15. Question: What type of business plan primarily targets internal decision-making and planning? a) Startup business plan b) Strategic business plan c) Operational business plan d) Feasibility business plan Answer: c) Operational business plan

Part 2: Download business plan questions & answers for free

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16. Question: What external factor analysis tool helps identify the political, economic, social, and technological influences on a business? a) PEST analysis b) SWOT analysis c) BCG matrix d) Porter’s Five Forces Answer: a) PEST analysis

17. Question: Which statement best describes a vision statement in a business plan? a) Outlines the short-term goals of the company b) Identifies potential risks and challenges c) Describes the company’s future aspirations d) Analyzes the company’s target market Answer: c) Describes the company’s future aspirations

18. Question: What is the purpose of conducting a competitive analysis in a business plan? a) Identify potential partners b) Analyze customer feedback c) Evaluate strengths and weaknesses of competitors d) Forecast financial performance Answer: c) Evaluate strengths and weaknesses of competitors

19. Question: Which financing option involves borrowing money that must be repaid with interest over time? a) Debt financing b) Equity financing c) Venture capital d) Angel investing Answer: a) Debt financing

20. Question: What does the term “ROI” stand for in the context of financial analysis? a) Revenue on Investment b) Return on Innovation c) Risk of Inflation d) Return on Investment Answer: d) Return on Investment

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12 Critical Questions to Ask Before Hiring a Business Plan Writer

• May 30, 2024

10 Min Read

Finding the right business plan writer can be a pain—we get that.

First off, you don’t hire a writer to just write plans. They must have extensive industry knowledge, understand business concepts, analyze and forecast financials, and help refine your company’s growth strategies. But most importantly, be able to help you attract funding!

Secondly, the talent pool is large with varied experiences and perspectives. And you need to hire someone who can mold according to your company’s unique requirements. Tough, isn’t it?

So, the only way to find “the writer” is through a hiring process where you ask the right questions. And we’re here to help.

In this article, we’ll cover 12 questions to ask business plan writers so you can analyze who can help you achieve your business goals most effectively!

Basic requirements and qualities to look for in a business plan writer

Although we will discuss the questions to ask business plan writers to identify if they’re the right fit for the job, consider looking for these qualities in a business plan writer before you start shooting questions.

• A business education background, so they’re well-versed in the business jargon and strategies. Academic qualifications show promise in a writer’s theoretical and practical knowledge.
• Owned a business before, has been a business partner, or has a relevant career record.
• The writing ability of a professional to make business plans sounds exciting and worth the reader’s time, like investors and clients. (Hint: ask for their samples)
• Financially savvy because most business plans are designed to obtain funding.

With that said, let’s dive into the questions!

The most important questions to ask before hiring a business plan writer

Here are questions you may ask your potential hires to understand them, their experience, their market knowledge, and if they fit right in your company:

Q1. What business and industry experience do you have?

Before hiring a business plan writer, gain valuable insights into their business and industry experience.

After all, you wouldn’t just hand a bowling ball to anyone and expect a strike. You need to know if they can actually bowl.

So, ask about their experience in the field, years of service, educational background, and professional credentials. This can include achievements, past clients and projects, various industries they’ve served, and outcomes achieved for clients.

Such information will reveal whether they have the right skills and knowledge to write a high-quality business plan and achieve the goals you’re aiming for.

Q2. Where are you based?

This question will tackle two concerns.

One: Time zones. This is essential if you or your writer works remotely or across oceans. You don’t want to hire someone who needs to chase after you at odd times.

Two: Language barriers (if any exist). This knowledge will help you avoid communication gaps. It’s also essential if you’re looking for a writer who can speak or write in multiple languages to cater to your specific needs.

These two nuggets of information make collaboration and communication easy.

Q3. How do you extract information and ideas from entrepreneurs and put them out on a document?

A good business plan writer just knows!

They have the superpower to extract your company’s important information that pours right out of your gray matter. It’s the only way to create a solid business plan to convey your business idea adequately.

Whether you’re hiring a business plan writer or a writing agency, check if they’ve worked with businesses from various industries—in other words—their track record.

A broad exposure means they can pick the brains of entrepreneurs and comfortably understand how businesses (startups or giants) operate.

The payoff? Such writers can capture the essence of your business’s unique value proposition, irrespective of whether you run a tech company or a pet store.

Q4. Do you offer other services, or are you an expert in just writing business plans?

The answer to this will help you decide whether or not they’re a good fit for your individual needs.

Or do you need an expert who understands business plans that help in raising capital and winning a business partner or two?

Or a business plan writer with expertise in determining the financial model cost?

The point is: Many business plan writers and agencies offer services, like market analysis, financial modeling, competitive analysis, cover page designing, or creating business proposals.

So, analyze everything a writer or service has to offer. Then, hire an industry specialist or a jack of trades beyond business plan writing depending on your business goals and needs.

Q5. How do you create the required cash flow and financial projections?

An experienced business plan writer will effectively and proactively gather every record of your past financials (capital, investment, etc.).

They’ll also consider your marketing strategies and sales plans as well as provide all the necessary details to create your financial projections and cash flow.

Q6. Will your service include industry-specific market research?

Market research shows how many potential customers your business will have—the kind of data your investors will have their magnifying glasses out for.

A good writer will conduct research to present solid market data in your business plan. So you can impress your investors and claim funding.

Q7. Do you have any client references or endorsements?

Here, you want to know if the writer who claims to be an industry player has an actual reputation and proof of his past performance (in this case, success with previous clients).

So, ask writers to provide references to their work. Also, check for referrals, endorsements, testimonials, written business plan samples—anything that vouches for their performance history, success rate, and reliability.

Q8. What’s your process for keeping up with business trends?

Keeping up with the dynamic world of business takes work. However, a professional business plan writer can do it regularly.

Ask a few questions to test their knowledge regarding recent industry developments (locally and globally). You only need to know if they have, can foresee, and continue to acquire knowledge of industry trends so your business plan isn’t outdated.

Q9. Will you be writing the business plans yourself? If not, who will?

This question is fundamental, for the person you’re interviewing will not always write your plan. Sometimes, an individual writer outsources their services. Other times, you’re talking to a business plan writing service provider or agency management.

So it’s crucial to know who’ll write and deliver your plan (individual or team) to understand their expertise, skills, types of business plans they’ve written, and educational background.

Q10. Do you offer revision? If so, how many rounds of revision do you offer? What are your charges?

If you have experience writing plans, you know the first draft will need some reworking or changes—because first drafts are never perfect.

So, asking about revisions is a smart move in the hiring process.

Find out if your plan writer is comfortable with revisions, whether it’s fixing a typo, changing the color scheme of the business plan, or entirely re-doing the financial projections.

A qualified plan writer will give you all the details about the type of edits they’ll cover and how.

Once done, you can discuss the business plan writer’s pricing structure and fees. Find out if they charge on an hourly or project basis or have a flat fee.

Lastly, don’t forget to check with their accepted forms of payment.

Q11. Are you open to us editing the business plan once it’s delivered?

This question may seem insignificant, but it is essential. Here’s why:

Sometimes, your business plan writer may not be available due to leaves or differences in time zones. In such cases, if you need to make small changes to your business plan quickly to submit it to investors and you don’t have permission to make your own edits, your hands might be tied.

So, ensure your writer is okay with you making your own edits to save time and avoid missing opportunities due to time or availability constraints.

Q12. Are you comfortable with multiple document formats for creating and sharing business plans?

Do you prefer physical copies of business plans? A PDF file? What about an editable Google document because you and your internal stakeholders like to add edits and formatting requests?

And lastly, are the documents shareable with lenders, clients, and other business partners? If so, in which formats?

Good business plan writers will answer this specific question to clarify whether they can deliver your business plan per your format needs.

How a business planning software can eliminate the need for a business plan writer

The business plan writing process can be challenging, even for seasoned writers. This is not because they’re not good, but because there are too many aspects to juggle.

Look at all a business plan’s components , and you’ll know what we mean.

Fret not. Here’s the solution: business planning software .  A tool like Upmetrics can help you generate a business plan in under 10 minutes! All you need to do is input your basic business data and see the results coming through.

Sounds exciting? There’s more. A business planning software can:

• Make you sound professional and maintain impeccable grammar, just like a plan writer but better using an AI-writing assistant.
• Help you skip starting from scratch or needing a business plan writer to produce a basic business plan structure.
• Help save you time and money associated with manual financial projections done by writers (which can take days).
• Answer any business-related questions you have using an AI and provide valuable insights in seconds (unlike a human writer).

Hiring the right business plan writer is crucial to properly convey the message or spirit of your company.

Even if they’re the best in the world, they’re only human, so you’ll have to face delays, unexpected leaves, communication gaps, high fees, and more.

However, business plan software finds the correct balance between effectiveness, informativeness, speed, and affordability.

Software like Upmetrics makes creating a business plan a breeze while providing enough information to leave your investors wanting more of you!

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

Frequently Asked Questions

How can a business plan writer help your business.

The right business plan writer picks your brains to convert your vision into a realistically sound business that can win you partners and funding. They can also consistently help you make changes to your business plan according to altering trends, statistics, and figures so you can always stay at the top of your game.

Where can I find a business plan writer or service?

The internet is a good place to start, where you’ll find business plan writers, freelancers, agencies, and more. You can also opt for business planning software.

How much does it cost for a writer to write a business plan?

Hiring business plan writers can cost between $1,000-$25,000, depending on experience and business type. The price can be steeper if you hire a consultant or an agency, between $25,000-$50,000. However, an AI business plan generator like Upmetrics costs between $7 and $15 monthly.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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6 Questions Your Business Plan Must Answer If your product's unique aspects aren't defensible against a competitor's copy, it's time to fold your tent and go home.

By Doug and Polly White Edited by Dan Bova Nov 8, 2016

Opinions expressed by Entrepreneur contributors are their own.

The other night we were talking with a group of young people when one person said that she wasn't able to start a business because she couldn't qualify for a loan. As you can imagine, several of us chimed in that we didn't have funding either when we started our businesses.

Related: How To Write A Business Plan

Of course some businesses require funding, and we understand that. Capital-intensive industries , for instance, require a large up-front investment to get off the ground. However, if you have an entrepreneurial spirit, a modicum of talent and a lot of drive, you can start a business without funding.

To back this up, we conducted a quick search and found dozens of articles with low or no-cost business ideas. We particularly liked one from Small Business Trends that lists 25 businesses that you can start for less than $100.

That said, some business ventures fall somewhere in the middle. They need some funding. And, to be truthful, we ourselves needed to live on savings for several months until we built up a clientele in our consulting businesses that supported our lifestyle. If you plan to rack-up credit card debt or tap your 401(k) to fund your own dreams, you should fully understand what you are getting into. And a robust business plan is an important element. There are many free templates available . Find one you like and use it.

Below are several questions your business plan must address. We caution you to be brutally honest. If your idea isn't going to fly, it's best to come to grips with this reality now rather than after you've invested your life savings in the venture. The questions you should answer are:

1. What differentiates your product ?

We assume that your product fulfills a want, need or desire. If it doesn't, rethink your plans. Sometimes the market doesn't know it needs your product --and that's fine. Henry Ford famously said, "If I had asked them what they wanted, they'd have told me faster horses."

The first step is to identify the need your product will fulfill. Then determine whether or not this need is currently being met and if so, how and by whom? The first question we always ask clients is, "Why should a prospective customer buy your product rather than a competitor's?" If you can't answer this question clearly, concisely and definitively, go back to the drawing board.

Related: Starting a Business: The Idea Phase

2. Is there a large enough segment of the market that will value this difference?

Identify the segment of the market that values whatever it is that differentiates your product. Estimate the size of the market segment. Now, reduce the size of this segment by the percentage of people who won't be willing to pay what you will have to charge to make your business profitable. Can you still reasonably project enough volume to make your business economically viable?

3. Is the thing that differentiates your product defensible?

If your idea is a good one, you had better know how you will keep a large competitor with deep pockets from copying it and running you out of the market. There are many examples of well-healed copycats overtaking people with good ideas. You need a plan to protect yourself from this. Perhaps you can protect your intellectual property through a patent . Perhaps your idea, for one reason or another, is difficult to copy. What entry barriers are there to keep the competition from moving in?

4. How will you reach the target customer segment with your marketing message cost effectively?

Whoever said, "If you build a better mousetrap, the world will beat a path to your door," was simply wrong. If the world doesn't know you have a better mousetrap, no one will come knocking. Make sure you are clear regarding how you will reach your target customer segment with your marketing message. You need to have a clear plan for cost effectively acquiring customers. A marketing cost per acquired customer of $50 is no good if you make only $40 on each new customer.

5. How can you prove the viability of your idea quickly and inexpensively?

If you are afraid that you will need a big investment to launch your product, find a way to challenge that assumption. There may be ways to prove the viability of your concept without making the full investment. Ideas include outsourcing manufacturing or making version 1.0 by hand rather than buying expensive equipment.

Another? Launch in a limited geography. For instance, we have been working with a company that is developing an app for the property-management industry. We started by working with several local property management companies to prove the concept and work through some challenges. Now, we are rolling out to other geographies.

Chances are good that the initial version of your product will fail -- most do. Our advice is to fail fast and fail cheap. Launch as inexpensively as possible. Learn from the market's reaction. Make the necessary changes. As happened with the app company, prove that your concept will be successful before you invest in a full roll-out. You may even need to sell the initial units for less than they cost to make. We sold that app to the first users for a greatly reduced charge.

6. What will your cash flow look like?

Make sure that you build a thorough financial model that supports your decision to move forward. We encourage very conservative assumptions. New products often take much longer and cost much more to launch than you would think. Unless you have a lot of experience launching new products, the estimates you consider accurate will almost certainly be aggressive. If the economics of your product don't look good with very conservative assumptions, you may want to rethink things.

Related: 7 Myths About Starting a Business That I Used to Believe

Launching a new venture can be exciting and rewarding. It can also be fraught with risk. Honestly answering these six questions will help you make decisions that are more informed.

Entrepreneurs, Small Business Experts, Consultants, Speakers

Doug and Polly White are small business experts, speakers and consultants who work with entrepreneurs through Whitestone Partners . They are also co-authors of the book  Let Go to GROW , which focuses on growing your business.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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General election latest: Tory tactic on Starmer age may backfire, poll suggests; Farage changes tune on Tory deal

Sir Keir Starmer has faced accusations of a left-wing cull in the Labour Party, including from predecessor Jeremy Corbyn. In better news for the party leader, another Tory - Mark Logan - has defected.

Thursday 30 May 2024 22:00, UK

• General Election 2024

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Election news

• 'How can we trust you?' Voter challenges PM
• Tory defects to Labour | 'The right thing for country'
• Dropped Labour candidate accuses some in party of racism
• Corbyn claims Starmer 'clearly intervening' in 'purge'
• Tory tactic on Labour leader's age may backfire, poll suggests
• Farage changes tune on Tory deal
• Live reporting by Tim Baker

Expert analysis

• Jon Craig: Latest Tory defector not an obvious fit for Labour
• Gurpreet Narwan: Reform unfussed by impact of 'immigration tax'
• Darren McCaffrey: Partygate clearly still an issue for Tories
• Beth Rigby: Massive distraction gives Starmer questions to answer

Election essentials

• Trackers: Who's leading polls? | Is PM keeping promises?
• Campaign Heritage: Memorable moments from elections gone by
• Follow Sky's politics podcasts: Electoral Dysfunction | Politics At Jack And Sam's
• Read more: What happens next? | Who is standing down? | Key seats to watch | How to register to vote | What counts as voter ID? | Check if your constituency's changing | Your essential guide to election lingo | Sky's election night plans

It's 10pm and another busy day in the general election campaign is wrapping up.

All the parties have been on the campaign trail as we remain more than a month out from the election.

Labour's row over a so-called "purge" of candidates from the left of the party has continued to dominate.

However, there was some good news for Labour as the Conservative former MP Mark Logan announced he was defecting.

Let us get you up to speed on everything you may have missed today…

• Sir Keir Starmer   launched his party's election campaign in Wales , alongside the embattled first minister , where he reiterated his message of "change" and "national renewal" - and said Rishi Sunak didn't catch them out with the early election call;
• But the accusation that he is blocking left-wing candidates from standing for the party is overshadowing the party's messaging, with his predecessor Jeremy Corbyn telling Sky News he is "clearly intervening" in a "purge" ;
• The Labour leader denied that he is doing so , however, insisting the party wants "the highest quality candidates";
• He also praised Diane Abbott - who claims she has been blocked from standing - as a "trailblazer", but added: "No decision has been taken to bar her";
• And his deputy, Angela Rayner, told Sky News there was no reason Ms Abbott can't stand;
• Our political editor Beth Rigby says the issue has turned into a "massive distraction" - and leaves Sir Keir with questions to answer ;
• And Faiza Shaheen, who was blocked by Labour from being their candidate in Chingford and Woodford Green, told Sky News she has evidence to back up claims she suffered racism, Islamophobia and bullying.
• Rishi Sunak had a tough afternoon at a voter Q&A in Milton Keynes, where a man who lost his mother during the pandemic challenged him over his partygate fine ;
• Our  political correspondent Darren McCaffrey  says this shows the scandal that brought down Boris Johnson  is still relevant in this year's election ;
• And it got worse when Tory Mark Logan defected to Labour ;
• Meanwhile,  the Conservative Party  has been hitting Labour on its tax pledges today, with Chancellor Jeremy Hunt accusing the opposition of "flip-flopping" ;
• He accused his opposite number, Rachel Reeves, of "buckling under pressure" to rule out raising VAT in the next parliament, having "carefully and deliberately" avoided doing so all week -  including in an interview with Sky News' Sam Coates ;
• Speaking to Sky News, he  defended the PM's assertion that interest rates would fall under a government led by him, saying although the Bank of England is "independently" responsible for interest rates, he claimed Labour would fund spending through borrowing, which would see higher interest rates;
• But Mr Hunt also refused to commit to lowering prices amid this cost of living crisis by cutting VAT, saying prices are "decided in a market economy".
• Elsewhere, the  Green Party  has launched its election campaign , saying they want to win at least four seats in parliament to ensure Labour are "pushed beyond the timid change they are offering".
• The  Lib Dems  have been unveiling their plans for a mental health professional to work in every school - and Sir Ed Davey went down a waterslide .
• The SNP leader, John Swinney, has been out campaigning in Edinburgh.
• Plaid Cymru  has launched its campaign in Bangor, declaring it's "time to kick the Conservatives out of power".
• And  Reform UK  has launched its legal immigration policy , which consists primarily of an "employer immigration tax" to incentivise businesses to employ British workers;
• Nigel Farage also took the time to rule out a deal with the Tories .

Here are a couple of other stories that may interest you:

Our essential political podcast,  Politics At Jack And Sam's , is going daily through the election campaign to bring a short burst of everything you need to know about the day ahead as this election unfolds.

Click here to listen to this morning's episode - and tap here to follow Politics At Jack At Sam's wherever you get your podcasts .

Stick with us for all the latest throughout the evening.

As we reported earlier, Faiza Shaheen was previously running to be Labour's MP in Chingford and Woodford Green.

However, the party withdrew their support yesterday, and there are now accusations this is part of a "purge" of left-wing candidates.

Ms Shaheen stood in the seat in 2019, losing to incumbent Conservative Iain Duncan Smith.

Now, Labour has announced who will be standing for them in the seat instead.

Shama Tatler has been chosen to contest Chingford and Woodford Green.

Ms Tatler is a Labour councillor in Brent.

The full list of candidates for Chingford and Woodford Green is:

• Chris Brody, Green Party;
• Josh Hadley, Liberal Democrats;
• Yousaff Khan, Workers Party of Britain;
• Paul Luggeri, Reform UK;
• Shama Tatler, Labour;
• Iain Duncan Smith, Conservative Party.

As we reported earlier, the former Conservative MP Mark Logan has defected to Labour.

He is not standing to be an MP again.

In a statement, Labour leader Sir Keir Starmer said: "Voters across the country are looking to Labour for change. I am pleased Mark Logan has taken the decision to vote for Labour at this upcoming general election.

"After 14 years of Tory failure, voters are returning to Labour because they can see that we are a changed party and back in service of working people. 

"It's time to stop the chaos, turn the page and rebuild Britain."

No major party had much of a TikTok presence before the general election was called. 

Now, they're racing to build them on the fly.

But it's not all about follower count - while Reform leads in that field, it's Labour who are making the most of this key digital battleground. 

Our  online campaign correspondent  Tom Cheshire   explains...

Until voters go to the polls on 4 July, the Politics Hub will be looking back at some memorable moments from previous general election campaigns.

We have the perfect follow-on from our previous post...

New Labour's time in power often saw stories about an apparently fractious relationship between Tony Blair and Gordon Brown.

But the pair put on the truest form of friendship imaginable on the 2005 campaign trail: enjoying some delectable 99 Flakes together.

The photo op was designed as a rebuttal to reports they did not much like each other, and nothing brings people together like a good ice cream.

And they probably really did cost 99p back then.

Previous entry:  'Nothing has changed'

One of the Tories' favourite attacks on Labour leader Sir Keir Starmer has been to label him "Sir Softy" for an allegedly weak stance on crime.

Well, he somewhat lived up to that moniker today - for very different reasons.

He was in South Wales today on the campaign trail, where he served ice cream to day trippers on Barry seafront.

Faiza Shaheen, who was until yesterday set to be the Labour candidate for Chingford and Woodford Green, has released a statement and spoken to Sky News in the wake of the row.

Writing on X, she said the central Labour Party withdrawing their backing comes at "the end of a systematic campaign of racism, Islamophobia and bullying from some within the party when I first announced that I wanted to run for Labour again".

Sky News has contacted Labour for comment.

Ms Shaheen previously stood for the seat in 2019, and enjoyed visits from the then shadow minister Sir Keir Starmer.

Speaking to Sky presenter Gillian Joseph , Ms Shaheen says she was suspended because of 14 posts on X over 10 years.

However, she played down the fact she "liked" a post from US comedian Jon Stewart in 2014 in which he criticised Israel - saying she was not "pressed particularly on that".

Asked about the claims of racism, Islamophobia and bullying, Ms Shaheen says she will "put out" evidence.

She says she made a complaint in October or November about something posted in a WhatsApp chat.

"It took six months for them to come back to me and even then they were like, we consider... it is closed," Ms Shaheen says.

She adds that she "really upset" when Sir Keir Starmer said Labour was searching for the "best" candidates.

A squeeze on people's incomes due to frozen tax thresholds will continue until 2028 under Tory plans, Jeremy Hunt has confirmed.

Rishi Sunak introduced a freeze on tax-free personal allowance thresholds (the amount you can earn before you start paying tax) when he was chancellor back in 2021. In his autumn 2022 budget, Mr Hunt extended the time it would need to be in place from 2026 to 2028.

The frozen rates mean many have failed to feel the benefit of the national insurance cut which kicked in this year.

The Office for Budget Responsibility also estimates the static rates will drag an additional four million people into paying tax by 2028 and push three million into a higher tax bracket. This is because wages will go up alongside inflation, but the threshold won't. 

The policy is often referred to as a "stealth tax".

Mr Hunt told BBC Radio 4's Today programme: "The tax rises that happened as a result of the pandemic and the energy shock, these two giant shocks, will stay for their allotted time period."

But he reiterated the Conservatives' pledge to end the freeze after 2028, saying: "I can absolutely undertake that the threshold freeze that we introduced until 2028 will not continue after that."

The Tories have said they will unfreeze the thresholds for pensioners if they win the election.

Labour has also refused to commit to unfreezing overall tax thresholds.

Sir Keir Starmer said earlier that he believed the tax burden on working people was "too high" but that his party was not going to "make commitments that we cannot afford".

"Therefore I'm very clear about the tax that will remain and will be locked and where we cannot make those commitments," he said.

What are the tax thresholds and what do they mean?

The personal tax allowance is frozen at £12,570. You don't pay income tax on anything you earn below that - anything above is taxed at the 20% base rate. At the same time, the higher rate has been frozen at £50,271 - anything above that is taxed at 40%.

Tom Selby, director of public policy at AJ Bell, said the personal allowance, if it had been inflation-linked since 2021-22, would be forecast to rise to £15,989 by 2028 - nearly £3,500 higher than the frozen threshold.

There was another classic of the Lib Dem election stunt genre today, and this time Sky joined in.

Our correspondent Matthew Thompson jumped on a waterslide with party leader Sir Ed Davey - and you can watch the fun they had below...

The stunt was done to raise awareness of a Lib Dem policy to introduce a mental health professional into school.

That concludes our coverage of tonight's Politics Hub With Ali Fortescue - it'll be back tomorrow, but stick around for more news and analysis through the evening.

If this is the first TikTok election, you might be surprised at who's winning.

On the youngest, buzziest social media platform, Reform UK - whose vote tends somewhat towards the elderly - has the most followers, 125,500, just ahead of Labour on 108,500.

But others are catching up fast - and how they're using it reveals a lot about a key digital battleground in this election, one of the few arenas where money doesn't buy you influence.

Because this is new territory. "It's worth noting that the three major parties are really new to the game," says Kate Dommett, professor of digital politics at the University of Sheffield.

No major party had much of a TikTok presence before the election was called. Now they're racing to build them on the fly.

Read more from our online campaign correspondent Tom Cheshire :

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