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title: 6 important questions all start-up companies should consider when developing a business model - Maus Strategic Planning Software
description: Is the Market Saturated? Sometimes a company may try to reach customers who don’t need more of a certain product. When customers are satisfied with what they have, they have no incentive to purchase more, and the market is therefore … Read More
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# 6 important questions all start-up companies should consider when developing a business model

Is the Market Saturated? Sometimes a company may try to reach customers who don’t need more of a certain product. When customers are satisfied with what they have, they have no incentive to purchase more, and the market is therefore … Read More

[ Chris Palmer ](https://maus.com/blog/author/chris-palmer)

 Apr 28, 2016

<http://www.facebook.com/share.php?u=https://maus.com/blog/en-au/6-important-questions-start-companies-consider-developing-business-model&utm_medium=social&utm_source=facebook> <http://www.linkedin.com/shareArticle?mini=true&url=https://maus.com/blog/en-au/6-important-questions-start-companies-consider-developing-business-model&utm_medium=social&utm_source=linkedin> <https://twitter.com/intent/tweet?original_referer=https://maus.com/blog/en-au/6-important-questions-start-companies-consider-developing-business-model&utm_medium=social&utm_source=twitter&url=https://maus.com/blog/en-au/6-important-questions-start-companies-consider-developing-business-model&utm_medium=social&utm_source=twitter&source=tweetbutton&text=> [mailto:?subject=Check%20out%20https://maus.com/blog/en-au/6-important-questions-start-companies-consider-developing-business-model&utm_medium=social&utm_source=email%20&body=Check%20out%20https://maus.com/blog/en-au/6-important-questions-start-companies-consider-developing-business-model&utm_medium=social&utm_source=email](mailto:?subject=Check%20out%20https://maus.com/blog/en-au/6-important-questions-start-companies-consider-developing-business-model&utm_medium=social&utm_source=email%20&body=Check%20out%20https://maus.com/blog/en-au/6-important-questions-start-companies-consider-developing-business-model&utm_medium=social&utm_source=email)

**Is the Market Saturated?**

Sometimes a company may try to reach customers who don’t need more of a certain product. When customers are satisfied with what they have, they have no incentive to purchase more, and the market is therefore considered saturated. If this is the case, it will be hard to win over a customer base that already have invested in the product or service.

**Is there too Much Competition?**

If a market is competitive, a company must work harder, and spend harder, to gain market share. In fact, established competitors are likely to be very powerful and resourceful and can easily drive new companies out of business. For example, major retailers like Woolworths in Australia, and Walmart in the United States have been blamed for the failure of many smaller businesses that simply could not compete.

**Are there Barriers to Entry?**

Some industries are difficult to get into. This could be because legal requirements (such as environmental, Health & Safety or other legislative requirements) are prohibitive or because start-up costs are high. This can make the process of entry too resource intensive and may even cause failure before the start up gets off the ground.

**Is The Idea a Bad Idea**?

Many entrepreneurs think they have the next big idea. They believe their product will be a huge success the moment it hits the market.  This can be bias thinking, and reduce the amount of time spent completing careful research into the target market, or cutting corners on the quality of the product or service.

**Is the Idea Too Difficult to Implement?**

Some businesses can be too optimistic about what it takes to get off the ground. Is the product or service too complex to the target market, or too complex to design, deliver or assemble?

**Is Your Business Technology Outdated? **

Businesses must understand the importance of technology to their business. State-of-the-art computer or manufacturing systems may streamline a competitor’s business and save them millions of dollars. But a business that tries to compete with outdated technology is unlikely to hold a competitive advantage, or they’re unlikely to hold one for long.

## Similar posts

<https://maus.com/blog/6-important-questions-start-companies-consider-developing-business-model>

### [6 important questions all start-up companies should consider when developing a business model](https://maus.com/blog/6-important-questions-start-companies-consider-developing-business-model)

Is the Market Saturated? Sometimes a company may try to reach customers who don’t need more of a certain product. When customers are satisfied with...

 Chris Palmer  Apr 28, 2016

### [80-20 rule of customer buying](https://maus.com/blog/en-au/80-20-rule-of-customer-buying)

There is an old rule in business that predicts 80 per cent of your sales will come from just 20 per cent of your customers. This is largely true....

 Chris Palmer  Nov 15, 2016

### [80-20 rule of customer buying](https://maus.com/blog/80-20-rule-of-customer-buying)

There is an old rule in business that predicts 80 per cent of your sales will come from just 20 per cent of your customers. This is largely true....

 Chris Palmer  Nov 15, 2016

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