Let me tell you about Marvelous. If there was one thing everyone knew about him, it was his deep, unwavering love for food. So, when he came into some money, the next step seemed obvious: open his own restaurant. He was so focused on the dream of a beautiful eatery that he overlooked the foundational questions to answer before launching your business. He simply poured his capital into making it a reality, driven by pure passion.
But the reality of running a restaurant quickly set in. The long hours, the stress of managing staff, and the constant demands of customer service were a world away from simply enjoying a good meal. Marvelous soon realized that his passion was for eating food, not for the business of serving it to others. The energy that fueled the idea wasn’t enough to sustain the operation. Unsurprisingly, the business folded in less than a year.
It was only after the dust had settled and he had consulted with us that Marvelous figured out where he had gone wrong. He turned that failure into a new mission and has spent the last five years coaching entrepreneurs to avoid the same costly mistakes. His story is a perfect example of why you must back passion with a solid strategy. That strategy begins with asking and honestly answering a few vital questions before you invest your time, money, and heart.
Today, I will provide you with some key questions to answer before launching your business.
Let’s go.
1. Why Do You Really Want To Start A Business?
This is arguably one of the most critical questions to answer before launching your business. Why? Because your ‘why’ is the fuel that will keep you going when challenges inevitably arise and your initial motivation fades.
You may be thinking: “The reason is obvious!”. But is it? If you ask ten entrepreneurs, you will be surprised that half of them don’t clearly remember why they started. Those who do might give you a generic answer, such as “to make money.”
That’s not good enough.
Mitchell Elegbe, the founder of Interswitch, puts it best: “You must have a clear vision. The vision is what will keep you going.” Your “why” is your anchor in the storm. This is a question you must answer with brutal honesty. Write the answers down and read them until you are fully convinced. Skipping this question will come back to haunt you when things get tough.
2. What Problem Does This Idea Solve?
The best, most successful business ideas are designed to solve specific problems. Think about the difference in house hunting across Nigeria. While finding a decent apartment in Abuja might be a challenge, anyone who has tried to rent in Lagos knows it’s a uniquely frustrating, high-stakes game. A business that genuinely solves that specific Lagos problem meets a desperate need. That sharp focus is what gives it a much higher chance of survival than a vague, nationwide approach.
Tayo Oviosu, the CEO of Paga, built his entire company on this principle: “The most important thing is to solve a real problem. If you solve a real problem, you will be able to build a business around it.”
Your idea must be a solution. Ask these follow-ups:
- What problem is prevalent among my target audience?
- Can I actually solve it in a unique or better way?
- Are there people already solving this? (Hint: Yes)
- Is there a gap in the market I can fill?
- Does my target audience even care about my solution?
The answers to these questions are the foundation of your business and its profitability.
3. Who is The Target Audience For Your Business?
Please, do not make the mistake of thinking “everybody” is your customer. That is a fast track to failure. Let’s be real, Nigerians swear by Jollof rice, but does everyone buy it? No.
Marketing guru Seth Godin famously said, “Don’t find customers for your products, find products for your customers.”
Starting a niche business makes your marketing and advertising efforts a lot easier and more effective. A deep understanding of your target audience, including what they need, what they want, and their buying habits, is what ensures your products and content truly resonate with them. Answering ‘who is my customer?’ is one of the most important questions to answer before launching your business because it shapes all your marketing efforts. But how do you get this knowledge? While the answer is ‘proper market research,’ knowing where to start can be overwhelming. This is a critical step we help our clients master from day one.
(See how we uncovered game-changing audience insights in this case study.)
4. Who Are Your Competitors?
No matter how unique and brilliant your business idea is, a variation of it is already in existence. Thinking of becoming a virtual assistant? Already exists. Selling your art online? Yup, that is a crowded market. Even if the idea comes to you in a dream, the chances of someone else doing it are high. It is quite hard to find a business that is 100% unique.
Knowing this, your job is to check your competitors and see how strong they are. Look at how they interact with customers, how they present their products on social media, and how they rank on Google. This is more about strategic positioning than copying. Proper market research reveals their playbook and helps you find the gap where your brand can win.
5. Do You Have The Time And Resources To Run The Business?
A small, hard fact about businesses is that you need to invest a lot of time and a lot of resources before they start making money.
As Tara Fela-Durotoye, founder of House of Tara, emphasizes, “To be successful, you have to be deliberate.” This applies directly to your resources.
Do you have the time to dedicate and the funds needed to run the business until it’s profitable? Make sure the answer is a clear “yes”. Create a detailed checklist of every single thing you will need to buy or set up before you launch. This includes:
- Company name registration.
- Website hosting and creation.
- Product availability or development.
- A realistic budget for advertising and marketing bills.
6. How Will You Market The Business?
You cannot just build a great website and wait for customers to come. You must market your business to the right people.
A strong plan uses a mix of promotional tools like advertising, sales promotions, building good public relations, and direct marketing. As content expert Ann Handley advises, “Make the customer the hero of your story.” This means every part of your marketing should focus on solving the customer’s problem. At Purple Digitals, we help you create a clear marketing plan that uses the right mix of these tools to help your business grow.
7. How Will You Price Your Products?
For any business to break even and thrive, its products need to have the right price. This is a delicate balancing act.
If your products and services are too expensive, customers will happily flock to your competitors. But if they are too cheap, you will be running on fumes and make no money.
Investor Warren Buffett said it perfectly: “Price is what you pay. Value is what you get.” Your price must reflect the value you provide. This question is best answered by—you guessed it—market research. It helps you know what your competitors offer and, crucially, what their prices are.
If you’ve thoughtfully answered these 7 questions and feel confident, your path is becoming clear. The next logical step is to understand the official process of making your business a reality. When you’re ready to get started, our complete guide will walk you through every step: How to Start a Successful Business in Nigeria
Your Next Step!
Have you answered all seven questions? Do you still feel that conviction to launch your business?
As you can see, starting and running a business is a lot of hard, deliberate work. One of the hardest questions to answer before launching your business is “How will my business stand out?” At Purple Digitals, we help new entrepreneurs like you build a clear growth strategy from day one.
Let’s talk about your idea today.
