Question: What would I do if I were starting a business today?
Why should you listen to me? Because I’ve spent over 40 years in the startup world.
I launched two businesses in the 1980s, another in the 1990s, one in 2012, and another in 2015.
Two of them are still running, while three didn’t make it.
I stay involved in startups every day. Whether it’s emails, online discussions, or meetings, I’m always engaged. As an angel investor, I’ve backed more than a dozen startups.
So, if I were to start all over again, these are the steps I’d take—and that you can take too.
1. Find the Right Business Idea
I don’t believe an idea has value on its own. Making lists of great business ideas or chasing billion-dollar ideas doesn’t make sense to me.
Instead, I look for a strong connection between the idea and the people behind it.
The Right Fit Between the Founder and the Idea
A great startup founder is so passionate about the idea that they can’t imagine not pursuing it.
For them, it’s an obsession. They deeply understand:
- The problem the business solves
- How their solution works
- Why they are the right person to solve it
The Right Fit Between the Business Model and Personal Goals
Not every startup needs to aim for massive growth or outside investors.
Some business owners want financial freedom, work-life balance, or the ability to work from home.
A good business model matches the founder’s personal and professional goals.
The Right Fit Between the Business and the Market
A great business idea doesn’t exist in isolation. It must fit a real market need.
Successful businesses don’t just rely on passion or persistence. They solve problems that people are willing to pay for.
Key question: Will enough customers pay enough money to cover costs and generate profit?
If the answer isn’t clear, it’s time to analyze the idea further.
2. Build a Financial Forecast
Numbers help me understand a business better.
I break down key figures—like sales and costs—over the next few months or years.
Identify What Drives Sales
Every business has unique factors that drive sales.
For example, online businesses often track website traffic, email open rates, and clicks.
A retail store might focus on foot traffic or conversion rates.
The key is to identify measurable numbers that directly impact revenue.
Estimate Costs and Expenses
Next, I estimate costs:
- What are the costs to produce and sell the product?
- What will employee salaries, rent, and marketing cost?
- How much space will the business need?
Even if exact numbers aren’t available, reasonable estimates are possible. If you have no idea about these costs, you may need more research or a business partner with relevant experience.
Choose Your Approach
Some entrepreneurs prefer starting with a mission statement and strategy before diving into numbers.
Others, like me, prefer to analyze financials first and work backward.
There’s no right way—what matters is understanding both the big picture and the details.
3. Develop a Simple Business Plan
A business plan helps break down uncertainty into manageable parts.
By this stage, I’d have a simple outline covering:
- Projected sales, costs, and cash flow
- Key strategies and tactics
- Important milestones
I call this a lean business plan—a working document that evolves as the business grows.
4. Identify Potential Deal Breakers
Before moving forward, I’d take a hard look at the risks.
Look for Fatal Flaws
In past failures, I’ve realized some businesses had problems I should have spotted earlier.
Some common fatal flaws include:
- Stronger competition than expected
- An overestimated market size
- Production challenges that make scaling impossible
Enthusiasm can sometimes cloud judgment, so I’d also ask trusted friends, mentors, or investors for their honest feedback.
Don’t Rely on Myths
Some people say that passion guarantees success. Others believe persistence alone will make a business work.
Neither is true.
Failing to recognize problems early can lead to wasted time and money. The best way to avoid this is by regularly checking financials—especially cash flow—to spot trouble before it’s too late.
5. If the Idea Holds Up, Take Action
If everything checks out and the business seems viable, I’d move forward.
There’s no perfect time to start. Research and preparation are important, but waiting too long can lead to missed opportunities.
That said, regular check-ins are necessary. If things aren’t working, I’d be ready to adjust the strategy—or even shut things down and start fresh.
Next Steps: Moving From Idea to Execution
There’s no single roadmap for starting a business, but these are common steps:
Build Your Team
Surround yourself with people who bring essential skills—whether that’s product development, marketing, or operations.
Secure a Domain Name and Online Presence
Most businesses need a website. I’d research available domain names early and secure one that fits the brand.
Establish a Legal Structure
Depending on the business type, I’d register a name locally and explore whether an LLC or corporation is the best fit.
Finalize the Business Plan
A formal plan depends on the business’s needs.
- If I don’t need investors, a 1–2 page plan is enough.
- If I’m seeking funding, I’d prepare a more detailed version with market research and financial projections.
A living business plan—one that evolves over time—is more useful than a static document.
A Real-World Example: Launching an Online Business
Let’s say I wanted to start an online business offering entrepreneurship training.
Here’s how I’d apply my own process:
- Validate the Idea – I’d ask industry experts about market demand, pricing, and competition.
- Build a Team – If I couldn’t find key people to join early, that could be a red flag.
- Test Demand – I’d set up a basic website with a pre-registration option to gauge interest.
- Estimate Costs and Revenue – I’d map out projected expenses and early cash flow needs.
- Adjust Based on Feedback – If demand looked weak or costs were too high, I’d rethink the model.
Only if the idea still seemed strong would I move forward with development and marketing.
