2/11/22, 3:29 PM 9 Questions To Ask A Founder Launching A Startup - Los Angeles Angel Investor and Venture Capital Partner-

Partner- Jonathan Hung

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9 Questions To Ask A Founder Launching A Startup

If you’re reading this then that means you may be launching a startup. Odds are that you’ve
worked a few jobs and the 9-5 life just isn’t for you. Either that or you’ve got a killer business
idea and want to turn it from an idea into a reality. Either way, props for you. You’re at the
beginning of an exciting journey.

That being said, entrepreneurship is not for the faint of heart. There is no roadmap,
instruction manual for success, no security, and there are lots and lots of hard work. To
make sure that you’re fully aware of the challenges that launching a startup will present, I’ve
put together this article.

These are hard questions that everyone should ask themselves before launching a startup.

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Table of Contents

1. Why Are You Getting Started?

2. Is Your Business Value-Based?

3. Do You Have Relevant Business Experience?

4. Are You Ready For The Time Commitment?

5. Do You Have The Right Support System In Place?

6. Have You Thought About The Entire Process From Start To Finish?

7. What’s Your Exit Strategy?

8. How Will You Fund Your Startup?

9. Can You Persevere Through Tough Times?

Conclusion

1. Why Are You Getting Started?

Ultimately the answer to this question will be what pushes you to succeed. If you don’t have
a strong enough motivator then it will be tempting to just give up at the first sign of a
struggle. These are some of the most common (and most powerful) reasons that drive
people to launch a startup:

1. They want to change the world and their business is a way to do that (Facebook,
Apple, Nike, etc.)
2. They want to be rich and are willing to do whatever it takes to escape the 9-5 life and
earn their time freedom back
3. They have a need to be in control and run their business to their own terms
These are three of the strongest motivators for budding entrepreneurs
(https://jonathanhung.com/online-networking-tips/). If your own reason for wanting to get
started in business is more along the lines of “it would be fun” then you might be wise to
reconsider.

2. Is Your Business Value-Based?

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This may seem like a simple question to ask but it’s actually one of the most important
questions on this list, if not the most important. It’s important because if your business isn’t
value-based (providing a solution to a problem) then it’s destined to fail.

Consider some of the world’s most recent exciting startups and the problem’s that they
solved:

Uber (https://www.uber.com/) – It was a hassle and expensive to get a ride

somewhere via taxi
Bird Scooters (https://www.bird.co/) – There was no easy, cheap way to travel a few
blocks at a time
Beyond Meat (https://www.beyondmeat.com/) – The world needed an alternative to
meat products that create health and environmental products
All of these companies are successful because they solve some type of societal need.
Either that or they drastically improve society’s way of doing something (ordering an uber is
much easier than a taxi).

When launching a start-up it’s easy to get caught up in the excitement of doing something
new, trying to secure new funding, and enjoying any publicity that you might get.

However, first and foremost it’s an entrepreneur’s job to provide value to other people.

Only once you’ve checked this box off with an emphatic “yes”, should you move on to the
other questions on this list.

3. Do You Have Relevant Business

Experience?
A professional basketball player has lots of skills when it comes to dribbling and shooting.
However, if that same athlete were to suddenly hop on a diving board and attempt a double
reverse backflip they’d probably land on their face.

The same analogy can be applied to the business world when it comes to launching a new
business. If you don’t have the relevant skills and experience that are required to compete
in your industry, then you’re in danger of landing on your face. If you don’t know the first
thing about baking, how a kitchen operates, or the ingredients in a cake then you probably
shouldn’t open a bakery.

Of course, that isn’t to say that you can’t learn on the fly and succeed. In fact, even if you’re
an expert in the industry you’re entering there will be a lot of learning on the fly. It will just
be a lot easier if you already have a firm background in your industry. If you haven’t

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launched a company yet but have been working in the same industry for a while, it could be
a good idea to start looking around for business needs in your industry!

You never know where opportunity will strike.

4. Are You Ready For The Time

Commitment?
You’ll need to give it 100% of your attention so it literally feels like you’re eating, sleeping,
and breathing your startup.

And it makes sense. Think about just a few of the things you have to do as the founder
(https://jonathanhung.com/startup-funding-stages/) of a company.

1. Come up with the company name, logo, brand, and mission.

2. Incorporate the company
3. Build/contract for a website/social media
4. Develop products
5. Develop content to drive traction/ promote your products
6. Handle the company’s marketing and PR efforts
7. Secure angel investors/funding
8. Develop a sales strategy and implement it
9. Balance the company’s budget and maintain standard accounting practices
10. Make every single decision that comes up
You’re responsible for literally every aspect of launching a startup and need to make every
decision. Of course, some of these things can be outsourced but if you don’t have the
money for outsourcing (or don’t want to spend it on that) then you better be prepared to
handle these tasks.

It won’t be just a few long nights too. Research

(https://www.freshbooks.com/hub/startup/how-long-does-it-take-business-to-be-
profitable) shows that it can take anywhere from 2-3 years (sometimes much longer) for
companies to become profitable. This is why it’s so important to have a good motivator and
a strong support system.

5. Do You Have The Right Support System

In Place?

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Speaking of which, how do your family and friends feel about you working on a startup and
taking a big risk/gamble? Are they supportive of you in your decisions? Would they be
interested and willing to invest some seed money?

This is an important question because not everyone is built for the entrepreneurship
lifestyle and not everyone is going to be supportive. There are going to be people who tell
you that you’re making a bad decision and that your idea will never work.

In the sports world, these types of naysayers are commonly referred to as “noise”. To be
successful, you need to ignore this noise and instead find people who are going to be a
positive influence on what you’re trying to achieve.

If you don’t have the right support group that doesn’t mean that you can never launch a
startup. It just means that you need to find new people. Don’t cut out your family and
friends but if they aren’t going to help you achieve your dreams then you need to find
people who will. To do this:

Join Facebook groups

Go to networking events
Attend seminars
Search LinkedIn for people with experience you want
Trust me, having the right support system in place can be crucial later on when things start
to get rocky for your startup (which they will).

Don’t forget that all of your networking and finding a support group will also help you find a
co-founder. Someone who you can work with the build the business shares your vision and
will have skill sets that fill in where yours are lacking. Remember, neither I or many other
investors want to invest in a “solo-preneur”.

There is just too much that goes on with a startup to have it rest on the shoulders of a
single person. You will need help and you will need someone to work with you to build the
business. In addition, this “team” approach to building your business will make investors feel
more comfortable investing in your business.

6. Have You Thought About The Entire

Process From Start To Finish?
Try to think of every aspect of the startup you would launch and be literal.

Who are the customers that you’re going to sell to, i.e. your target market? Where do
these people shop and how will you reach them? Why will they choose you over other
companies? In essence, you want to create the perfect “avatar” for your company so
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you can gauge the size of the market, who are the competitors and what is the
problem that your products or services will solve for them
Do you have the skills required to launch the company? If it’s web-based, do you have
the technical knowledge or are you committed to learning? If it’s retail or something
similar do you know how to buy an office/store space? Are you familiar with all the
laws, rules, and regulations needed to run a retail outlet?
How are you going to physically build and sell your product or service? Do you need to
store inventory? Where will you do that? Will you manufacture your product overseas?
Have you factored all these costs into your profitability assessment?
Really dig deep into the “nitty-gritty” of your business to try to uncover potential potholes.
Doing significant thinking upfront will definitely better prepare you for the journey to come.
The goal isn’t to talk yourself out of starting. The goal is to make sure you’re aware of what
will be required of you so you can better prepare. Know how you’re going to start, grow your
business, and how you want it to end. 

7. What’s Your Exit Strategy?

When you’re thinking about launching a startup it’s best to start with the ending in mind.
(https://www.investopedia.com/terms/e/exitstrategy.asp) What do you ultimately want to
accomplish from launching your startup? What we mean by that is you should be asking
yourself these questions:

Do you want to build your business as big as possible, IPO and crack the Fortune 500
list?
Do you want to be CEO and run the company for the next 5, 10, 20, or 30 years?
Would you be satisfied selling your company after a few years and making a quick
buck?
Are you just looking to launch a fun venture that pays your bills?
It’s important to ask yourself these questions because knowing the answers will help
influence your decision making as your progress. Again, the market and the competition will
influence your exit strategy. Not every company will successfully IPO and become the next
Facebook, Uber, or Airbnb. Don’t worry that investors won’t invest or that there is no use
starting a company unless you think you’re going to be the next big “unicorn company”.

A successful company that generates a profit and creates a nice return for your investors is
a lot more than most companies achieve. You can shoot for the stars but you should
congratulate yourself if you can build a company that provides a meaningful product or
service to your clients, takes care of its employees, and generates a significant return for
the owners and investors (https://jonathanhung.com/how-to-negotiate-with-an-angel-
investor/).

8. How Will You Fund Your Startup?

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This is another important question to answer. How are you going to pay for the expenses
that come along with starting a company? Assuming that you don’t have any of your own
money to spend, here are a few good places to start:

You can ask some of your friends and family if they’re interested in investing. This is
called “Friends & Family” investing
Go to the bank for a small business or a personal loan
Search for an angel investor
Consider crowdfunding (https://quickbooks.intuit.com/r/crowd-funding/8-
crowdfunding-sites-which-is-best-for-you/) your business
If you are spending your own money then it’s important to remember that every dollar you
spend is an investment in your business’s (and your own) future. Be smart with how and
where you spend your money in order to get the most optimal return.

9. Can You Persevere Through Tough

Times?
There are definitely going to be tough times as a founder of a startup. Steve Jobs has gone
as far as to say (https://www.goodreads.com/quotes/629623-i-m-convinced-that-about-
half-of-what-separates-the-successful), “I’m convinced that about half of what separates
the successful entrepreneurs from the non-successful ones is pure perseverance.”

This is very telling advice coming from Steve Jobs (a man who founded and grew multiple
companies (https://mashable.com/2011/10/06/steve-jobs-next-pixar/)).

If you’re able to consistently persevere through the difficult times, then you will surely find
success. A big part of persevering through tough times is being able to pivot and take your
business in new directions.

Sometimes a roadblock doesn’t mean that you need to stop. It just means that you need to
find a new way to continue forward when your path is blocked. For example, take a look at a
few popular companies that started as something completely different
(https://www.mentalfloss.com/article/22822/15-companies-originally-sold-something-
else):

Wrigley – Used to sell baking powder and soap. They offered chewing gum as an
incentive to bring customers into the store and eventually it became their main
product.
Colgate – Was founded in 1806 but didn’t start making toothpaste until about 70
years later.
Instagram – Was started as a mobile check-in app but was competing too closely
with Foursquare to be competitive. The founders decided to strip away everything
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except for the photo-sharing aspect, which is now what the app is known for.

Conclusion
In short, there are many reasons why creating and startup is more difficult than it is worth. It
absolutely has to be a “Labor of Love” as they say, or you can forget about it. If this all
sounds too much and way more than you want, you could always try a “Side-hustle” or even
buy a ready-made franchise if you have the money and want to have support right off the
bat.

Entrepreneurs are like the pioneers of the old days; they venture where few have gone and
risk a lot…. usually no one ever heard from them again. That’s a bit dramatic but you should
be aware of the risks and hardships you are going to undergo while getting your business
moving. You have to be committed and willing to put the time and effort into the deal. In
addition, you are going to have to learn one of the most difficult lessons for any
entrepreneur, they need to let go and delegate to the rest of the team. If they try to do it all
the endeavors will fail (https://jonathanhung.com/can-a-failed-startup-still-get-funding/) 9
times out of 10.

If you move forward with your world-changing business and you succeed, it will be like no
other feeling. You will have accomplished a life goal that is certainly something to be proud
of.
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