Starting an online business is an exciting endeavor. In many cases, budding entrepreneurs jump straight into the deep end in hopes of generating profits quickly and making the most of their newfound enthusiasm.

However, before you get stuck in with the nit and grit of online business, it is important to stop and ask yourself these 10 important questions.

Why? Taking time to ask yourself the following questions is a good way to make sure that you start your online business on the right foot. Getting these key factors right from the very beginning will prevent you from running into pitfalls later down the line.

Trust me, I’ve been there! I was once that enthusiastic digital entrepreneur who wanted to do everything at once. However, after countless attempts at online business success, I have finally learned the benefit of pausing to think at the start if your journey.

So, here are the 10 important questions that you should ask yourself before starting an online business.

1. How do you envision your life in 5 years time?

This question really changed the game for me. The very first online business that I started was not something that I wanted to do for the next five years, let alone for the rest of my life. This is not a good sign when it comes to choosing an online business idea because success requires long-term consistency and dedication.

Most new businesses don’t make a profit in their first year. So, to see results you have to be in it for the long game!

However, I didn’t stop to think about this and ended up spending my time and money on a business that was almost made to fail.

If an online business is not something that you see yourself doing in the long term, it might be time to explore other potential online business ideas.

The key is to find something that allows you to live the way that you envision yourself living in 5, 10 or even 20 years time. This is the only way to know that you will be able to stick at it, even when things don’t go to plan.

2. Is the business scalable?

In a world full of get-rich-quick schemes and disguised MLM initiatives, one of the most vital questions to ask before investing in an online business is whether or not it is scalable.

But, what does this mean?

When we talk about scalability in the context of an online business, we are referring to the ability of that business to handle growth. A scalable online business is designed in a way that it can accommodate an increasing workload without compromising performance or incurring significant additional costs. This means that as the business grows, its processes, systems, and resources can easily adapt to the higher demands.

Scalability is crucial if you want your online business to be more than just a side hustle.

Jump to: How to turn your side hustle into an online business

If your business isn’t scalable, your earning potential will be limited. Popular ways to scale a business include using automated systems, outsourcing tasks and hiring employees.

In the digital realm, scaling can also look like: diversifying your traffic sources, launching new products and finding additional ways to monetize your online presence.

3. How will this online business add value to people’s lives?

Believe me, it is impossible to sell products to people if you don’t believe in the value that they provide. Therefore, it’s important that you establish exactly what value an online business will offer to your target audience before you start the process of setting everything up.

Again, this question is especially important if you’re thinking about jumping on the latest quick money maker trend that you’ve seen on social media.

I have nothing against these online business models and most of them do have the ability to work. However, they will only work if you truly understand why someone might buy the product or service that you are offering.

Once you understand the why, it will be much easier to market and promote your business in a way that seems authentic and valuable.

4. Would you use the product/service yourself?

Here’s another questions to ask yourself that will make or break the effectiveness of your marketing campaign.

If you wouldn’t spend money on the product or service yourself, how do you expect other people to?

This is another pitfall that I fell for at the beginning of my journey to entrepreneurship. I started a print-on-demand business that sold graphic hoodies - completely different to my own personal style!

By choosing to sell a product that I wouldn’t necessarily buy myself, I found it really difficult to make authentic marketing material. Furthermore, the designs were terrible (in my opinion) because I didn’t really know much about the niche that I had chosen.

As stated by Nick Russell, “If you can't first sell yourself on the merits of your product, your customer won't be interested either”.

5. Will you be proud to tell people about your online business?

Let’s face it, we’ve all been tempted by the quick profit potential that is offered by MLM and other get rich quick schemes. However, one key question to ask yourself before committing to such a business model is ‘will I feel proud
running this online business?’.

Why is this question so important?

The main reason that I believe this question is crucial is because it encourages you to choose an online business venture that aligns with your standards and morals. In the long run, this will make it easier to promote your business, scale and grow. It also reduces that awful feeling of embarrassment when your friends and family find out about your new online business venture!

Sure, some people might be able to put up with a business that they’re not 100% proud of. But most of the time, these people struggle to keep going in the long run.

6. What will make your online business unique?

In most cases, your target audience are probably already using, or have decided not to use, the products or services that you plan to offer.

To persuade them to choose your product, you will need to establish how you are unique (or better) than your competitors.

What can you offer that other online businesses don’t? Can you fix your target audience’s problem more effectively than other options?

Understanding this from the get-go will allow you to focus your marketing efforts and branding in a way that addresses your key USP.

7. Does the online business idea fit within your limitations?

Another thing to consider is whether or not an online business idea is within your limits. This means thinking about whether you can realistically complete all of the steps that are needed to start and maintain the business.

Most of the time, when people start an online business they will need to balance it with another job. On top of that, some people may have other responsibilities such as children or family members to care for.

Unfortunately, a lot of online business ideas require more time than it may seem at first. being unable to balance a new business with other parts of your life is one of the biggest reasons that people quit before seeing any results.

To avoid investing your time and money into a business that you can’t manage, it is important to carefully consider whether or not the business fits within your capabilities.

Don’t worry, we have made this excellent rundown of simple side hustles for mums that could be turned into an online business venture.

8. How will you fund your online business?

If you don’t have enough funds to comfortably afford your online business, you will struggle to see the results that you have pictured in your mind.

Although some online business can be started for a very low cost, there is almost always a need to buy some kind of resource or tool during the initial stages.

Before starting The Rich Girl Guide, I set up a small reselling side hustle on Depop. This gave me a way to make money as and when I needed it for my business which was a lifesaver down the line!

By starting a side hustle, I was able to invest in the right tools, software, and experts that were needed to help my business flourish.

My advice here is to choose a side hustle that is easy. Balancing starting an online business will be hard enough so that last thing that you want to do is add more to your plate!

9. What potential challenges will you face when starting the online business?

It’s always good to start things with an optimistic mindset. However, in the world of online business, it is also very important to be aware of potential challenges that you might face.

Picture this: you’re all excited about your new venture, but suddenly, you hit a roadblock you never saw coming.

By taking the time to think about and anticipate these challenges, you can be so much more prepared. It’s like studying for a test – the more you know what might pop up, the better you can handle it.

So, do yourself a favor and spend a little time brainstorming the risks of starting an online business before taking the leap into the online business world. Trust me, future you will thank present you!

10. What legal and regulatory considerations do you need to be aware of when starting an online business?

This question isn’t one to miss!

Although the word regulation is enough to put anyone to sleep, new online business owners must consider legal and regulatory considerations before hitting ‘go’.

Thinking about this early on will stop you from accidentally breaking guidelines and potentially having to shut the operation down.

This happened to me when I tried my hand at affiliate marketing through Facebook. Everything was going well until, BAM, my account got removed because I was breaking platform guidelines.

It is also important to think about tax before you start an online business in the UK. The best place to start is on the Gov.uk website.

Final Thoughts

If you’re a new online entrepreneur, asking yourself the questions above is a great way to make sure that you get off to the right start and avoid pitfalls.

If you found these questions helpful, why not save them for later? Even better, you could share them with a friend who might find this post helpful.

Before you go, I also want to take this moment to promote my new guide. The Rich Girls Guide To Starting an Online Business is a 30-page interactive eBook that takes you through every step of starting a profitable online business venture in 2024.

The only way to know whether it works is to take the risk, invest that £5 and follow it through. However, I can say whole heartedly that this eBook is the best-value online business guide that you will find right now.