Before You Start a Business: Critical Questions Every Prospective Entrepreneur Must Answer
4 hours ago | Opinion
Before You Start a Business: Critical Questions Every Prospective Entrepreneur Must Answer
While exchanging pleasantries with colleagues on an early Monday morning, as others were rushing to sign the daily attendance register, a senior colleague approached me and said he needed professional advice. He was approaching retirement and hoped to establish a sustainable source of livelihood through business. I told him, “You are at the right place.” However, I quickly added that entrepreneurship is not a subject to be discussed in passing. We would need sufficient time to discuss it properly for a better understanding of what business truly entails.
Reflecting on that encounter, I realised that many others might share the same concern. Whether approaching retirement, leaving paid employment or simply considering self-employment, they often seek answers to one fundamental question; “What business can I do that will succeed?”
One common misconception is that certain businesses naturally generate quick wealth while others are destined to fail. From a professional standpoint, this perception is misleading. Every legitimate business has the potential to succeed or fail. The difference is not determined by the nature of the business alone, but also by the entrepreneur’s knowledge, preparation, commitment, managerial ability, financial discipline and understanding of the market.
Agriculture has produced millionaires and ruined investors. Trading has created wealth and generated losses. Manufacturing, transportation, consultancy, hospitality and technology-based ventures tell the same story. Therefore, the question should not merely be, “Which business is profitable?” but rather, “Am I prepared to make this business profitable?”
Business, in its simplest form, involves creating value by providing goods or services in exchange for reward. Every successful business identifies a need, develops a solution and delivers it effectively enough to attract customers. Beyond generating income, businesses contribute to economic development, employment creation, innovation, poverty reduction and improved living standards. For individuals, entrepreneurship offers opportunities for financial independence, wealth creation and lasting personal fulfilment.
However, entrepreneurship is fundamentally a human activity. Businesses do not succeed merely because they are registered or funded; they succeed through people with the right mindset and managerial capabilities. Individuals differ in their abilities, interests, experiences, values and attitudes. This explains why two people operating the same business in the same environment can achieve different results. Some are persistent, innovative and willing to learn, while others are easily discouraged or resistant to change. Consequently, prospective entrepreneurs must understand themselves before attempting to understand their markets.
Retirees and those approaching retirement possess advantages that should not be overlooked. Years of professional experience often provide valuable knowledge, networks, discipline and credibility. Depending on their competencies, interests and resources, they may explore opportunities in consulting services, education, agriculture, agro-processing, real estate management, trading, transportation, hospitality, event management and small-scale manufacturing. The most suitable business is not necessarily the one everyone else is pursuing, but one that aligns with an individual’s strengths, resources and market opportunities.
The transition from paid employment to entrepreneurship also requires psychological preparation. Unlike paid employment, where salaries are often predictable and responsibilities clearly defined, business involves uncertainty, competition, risk and unexpected challenges. Success demands patience, resilience, adaptability and continuous learning. Those who view business merely as a quickimmediately realised
Critical Questions to Consider Before Starting a Business.
Before committing financial resources to any venture, prospective entrepreneurs should honestly answer the following questions:
1. What problem am I trying to solve, and what genuine need does my proposed business address?
2. Who are my prospective customers and do they have the willingness and purchasing power to pay for my products or services?
3. Have I conducted adequate market research to understand demand, competition, pricing and location suitability?
4. Do I possess the necessary knowledge and skills to operate the business or am I prepared to acquire them?
5. How much capital will I need and can I sustain the business until it becomes financially stable?
6. What will distinguish my business from existing alternatives and attract customers?
7. Am I prepared to manage risks, withstand possible losses and remain committed when profits are slow to come?
These questions are not intended to discourage prospective entrepreneurs but to encourage informed decisions and minimise avoidable mistakes. A business idea becomes a viable opportunity only when it addresses a genuine market need and offers reasonable prospects of sustainability and profitability.
Financial management is another critical factor. Many businesses fail not because sales are poor, but because finances are poorly managed. Entrepreneurs must distinguish between business and personal funds, maintain proper records and exercise spending discipline. Excessive borrowing and poor cash-flow management have destroyed many promising ventures.
It is equally important to understand the difference between gross profit and net profit. Gross profit is the difference between sales revenue and the direct cost of goods or services sold, while net profit is what remains after operating expenses and other applicable costs have been deducted. High sales volumes do not necessarily translate into high profits.
A business plan is also essential. It is not merely a document prepared to obtain loans or attract investors; it serves as a management guide for defining objectives, assessing market opportunities, estimating financial requirements and anticipating risks.
Successful entrepreneurs generally conduct adequate research, understand their customers, maintain proper records, adapt to changing circumstances and continuously improve their operations. Conversely, poor planning, inadequate market research, weak financial management, unrealistic expectations and resistance to change are common causes of business failure. In many cases, failure results not from a lack of opportunity but from inadequate preparation.
As my conversation with my senior colleague drew to a close, I reminded him that entrepreneurship is not simply a retirement activity; it is a professional undertaking that demands preparation, commitment and strategic thinking. Retirement may provide the opportunity to pursue business, but it does not automatically guarantee success. The same principles apply to retirees, young graduates, civil servants and experienced professionals alike.
Starting a business can transform lives, create wealth and contribute meaningfully to society. However, before investing money, one must invest time in learning, planning and self-assessment. Ultimately, the most important question is not simply whether a business will succeed or fail, but whether the prospective entrepreneur is adequately prepared to give it the best possible chance of success. A good business idea may open the door, but knowledge, preparation and effective management are what keep the business standing.
Yusuf Lawan Nasidi is a doctoral researcher in Entrepreneurship at the Federal University of Technology, Minna. He writes from the Department of Entrepreneurship and can be reached
Disclaimer: “The views expressed on this site are those of the contributors or columnists, and do not necessarily reflect TheNigerianVoice’s position. TheNigerianVoice will not be responsible or liable for any inaccurate or incorrect statements in the contributions or columns here.”
Comments:
This article has 0comment,leave your comment.
- Recent
- Popular
- Comments
|
2027: Atiku Alleges Imam Was Suspended After Leading Prayer He Attended |
|
Before You Start A Business: Critical Questions Every Prospective Entrepreneur M |
|
2027: Adc Will Win 13 Northern States, Tinubu Only Has Five – Amaechi Boasts |
|
‘forgive Me’ – Tinubu Begs Plateau Residents For Not Visiting Attack-hit Communi |
|
Kwankwaso’s Daughter Seeks Divorce From Kano Governor, Cites Absence Of Love, Ca |
|
|
Trump’s Energy Deal With Russia Raises Difficult Questions For Europe |
|
This Oil And Water In A Bottle Called Nigeria |
|
Deported Thad Ugha, Aka “ezekwesili Abagana”: Facts Over Folklore — Before You A |
|
Protecting Nigeria’s Oil And Gas Assets Through Coordination And Accountability |
|
World Teachers’ Day 2026: Standing With Those Who Shape The Future |
|
One Killed, Several Injured As Bus Conveying Apc Women To Tinubu’s Uyo Rally Cra |
| Faculty Of Arts Unn Honours James Eze For Outstanding Contributions To Imaginati | |
|
From A Memorable Birth To Academic Excellence: How Abdulhafiz Babangida Momodu |
|
He Prayed I’d Be President And God Answered His Prayer – Tinubu Mourns Pa Fasora |
|
The Desirable Or The Available?: An Assessment Of The Nigerian Universities And |
