Starting a business takes more than a great idea; it also requires careful planning and thorough research. From choosing a legal structure to building your brand and setting up your financial systems, knowing which steps to take (and which pitfalls to avoid) helps lay the foundation for long-term success.
Whether you're in the idea phase or getting ready to open your doors, see how prepared you are to launch your business with our 10-question quiz.
1. What is the first step you should take when starting a new business?
a) Write your business plan.
b) Perform market research.
c) Decide on a pricing model.
d) Open a business bank account.
2. What is the purpose of creating a minimum viable product or prototype?
a) To finalize your pricing model.
b) To create packaging for your brand.
c) To test your concept and gather feedback.
d) To build your website.
3. What is the name of the pitch that communicates your business idea in just a few sentences?
a) Business plan.
b) Elevator pitch.
c) Sales pitch.
d) Financial pitch.
4. Which business structure is the simplest to form but offers the least legal protection?
a) Corporation.
b) LLC.
c) Sole proprietorship.
d) Partnership.
5. Why is it important to open a separate business bank account, even for sole proprietors?
a) To increase your personal credit score.
b) To avoid paying taxes.
c) To keep personal and business finances separate and build business credit.
d) To delay business registration.
6. What type of intellectual property protection happens automatically upon creation, but is stronger when you register it?
a) Trademark.
b) Patent.
c) Trade secret.
d) Copyright.
7. What is a soft launch typically used for?
a) Attracting investors.
b) Testing pricing models.
c) Finalizing legal paperwork.
d) Collecting early feedback in a low-pressure setting.
8. Which of the following is not a common reason startups fail?
a) Poor product-market fit.
b) Financial mismanagement.
c) Lack of a business plan.
d) A lean operating model.
9. Which of the following is not a recommended type of insurance for new businesses?
a) Business vehicle insurance.
b) Product liability insurance.
c) Intellectual property insurance.
d) Workers’ compensation.
10. Which of the following best describes the average timeline to profitability for new businesses?
a) Within the first 90 days.
b) Within six months.
c) After one year.
d) Two to four years of consistent work and planning.
Answer Key
Check out our answer key for correct answers and scoring!
CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.
