The 7 assumptions every entrepreneur needs to make before starting a business
Let’s be real – starting a business is freakin’ hard.
I’ve been there. You’ve got this amazing idea that’s going to change the world (or at least make you some money), and you’re ready to dive in headfirst.
But hold up.
Before you quit your job and max out your credit cards, there are some fundamental assumptions you need to make as an entrepreneur. These aren’t just nice-to-haves – they’re the difference between building something sustainable and joining the 90% of startups that fail.
So let’s dive into the 7 assumptions every entrepreneur needs to make before starting a business.
The 7 crucial assumptions for entrepreneurs
1. People actually want what you’re selling
This might sound obvious, but you’d be shocked how many entrepreneurs skip this step.
You need to validate market demand before you invest significant time and money. Just because you think your idea is brilliant doesn’t mean customers will agree.
How do you validate? Talk to potential customers. Run surveys. Create a simple landing page to gauge interest. Test a minimum viable product (MVP).
Remember, market research isn’t just a one-time thing – it’s an ongoing process. Customer needs evolve, and so should your business.
I once spent months developing a product I was sure people would love, only to launch to crickets. Save yourself the heartache and validate first.
2. You’ll need more money than you think
Every entrepreneur needs to assume that financial challenges are coming.
Your business will likely:
- Take longer to become profitable than you expect
- Require more startup cash than your initial estimates
- Face unexpected expenses and cash flow problems
Plan for this reality by:
- Creating detailed financial projections (and then add 30% more to your expense estimates)
- Setting aside a personal runway of at least 6-12 months of living expenses
- Separating personal and business finances from day one
- Having a Plan B for additional funding if needed
According to the U.S. Small Business Administration, inadequate financing is one of the top reasons businesses fail. Don’t be a statistic.
3. You’re signing up for hard work and long hours
If you’re starting a business to work less, you’re in for a rude awakening.
The entrepreneur lifestyle is demanding. You’ll be the CEO, the janitor, and everything in between. Especially in the early days, expect:
- 60+ hour work weeks
- Working weekends and holidays
- Being constantly “on call” for your business
- Juggling multiple roles simultaneously
This isn’t meant to discourage you – it’s to prepare you. The rewards of entrepreneurship can be incredible, but they come with sacrifice.
Make sure your family understands what you’re committing to. Schedule downtime to avoid burnout. And remember, this intense phase won’t last forever if you build your business right.
4. Your plans will change (a lot)
Mike Tyson said it best: “Everyone has a plan until they get punched in the mouth.”
Flexibility isn’t optional for entrepreneurs. You must assume your original business plan will evolve as you:
- Learn more about your customers
- Face unexpected market changes
- Encounter new competitors
- Discover better ways to deliver your product/service
The most successful entrepreneurs view their business plans as living documents, not rigid blueprints.
Research from CB Insights shows that 42% of startups fail because they make products nobody wants. Pivoting based on market feedback isn’t failure – it’s smart business.
5. Legal and operational details matter
Many entrepreneurs focus exclusively on their product or service and neglect the foundational elements of business.
You need to assume that setting up proper legal and operational systems is critical. This includes:
- Choosing the right business structure (LLC, S-Corp, etc.)
- Getting necessary licenses and permits
- Setting up accounting systems
- Planning your supply chain or service delivery
- Protecting your intellectual property
These details aren’t sexy, but they can sink your business if ignored. Get professional help with legal and tax matters – it’s an investment, not an expense.
6. You can’t do it all alone
The myth of the lone wolf entrepreneur is just that – a myth.
Successful entrepreneurs build support networks. Assume you’ll need:
- Mentors who’ve been where you want to go
- Peers facing similar challenges
- Professional advisors (accountant, lawyer, etc.)
- Eventually, team members to help grow the business
Even if you’re a solopreneur, you’re not solo. Building relationships now will pay dividends when you face inevitable challenges.
7. You need a bigger “why” than just money
Money is a terrible motivator for the entrepreneurial journey. It’s just not enough to get you through the tough times.
Assume you need a deeper purpose behind your business. This could be:
- Solving a meaningful problem
- Creating freedom for yourself and your family
- Building something that outlasts you
- Making a positive impact in your community
Research from Gallup shows that purpose-driven businesses outperform their peers. Your “why” isn’t just personal – it becomes the heart of your brand.
How to act on these assumptions
Now that you know what assumptions to make, here’s how to put them into action:
Do your homework – Research your market, competitors, and industry trends before launching.
Start small and test – You don’t need to go all-in immediately. Test your concept with minimal investment.
Build financial buffers – Assume everything will cost more and take longer than expected.
Develop systems early – Document processes so you can eventually delegate them.
Prioritize ruthlessly – Focus on what moves the needle and say no to everything else.
Connect with other entrepreneurs – Join communities, attend events, find your people.
Reflect on your purpose – Regularly remind yourself why you started and where you’re going.
The path of entrepreneurship isn’t easy, but making these assumptions from the beginning dramatically increases your chances of success.
So before you leap, look carefully. Assume challenges will come, prepare for them, and then – when you’re ready – go build something amazing.
