Archive for June 11, 2009
Five concise questions for the entrepreneur
I’ve been contemplating the questions that concisely define a business. These questions aren’t quantitative and are no substitute for a business plan, but any entrepreneur (or any executive, for that matter) should be able to answer them confidently and without equivocation:
- Who are you customers? (or, how do you know whether or not someone is your customer?)
- What products/services do you sell?
- Why does the customer buy your product/service rather than making/doing it themselves or buying it from someone else?
- How does your business generate a positive cash flow?
- How does your business generate value beyond revenue from sales?
So, gentle reader: what essential question would you add to this list?