Category: news-article

Businessman Leads New Board Majority in The Woodlands

By Matthew Tresaugue
December 20, 2016

Gordy Bunch’s first campaign slogan was “Best of the Bunch.” It was a groan-worthy pun, to be sure, but the wordplay had deeper meaning: The Woodlands Township’s governing board needed fresh faces and new ideas.

The message resonated with voters, who elected Bunch in 2012 – and his allies in subsequent elections.

Now, four years after Bunch ran against the powers that be, the turnover, or takeover, is complete. The conservative businessman is leading a new slow-things-down majority on the seven-member board. As chairman, a position akin to mayor, he vows to continue defending the quality of life in this leafy enclave of new wealth and settled rhythms.

“It’s not good enough to say, ‘It’s out of our control,'” Bunch said, referring to the oft-repeated reply by township officials to residents’ concerns about new development. “We need to be responsive.”

All of his plans, he said, focus on maintaining the scenic charm and suburban character that draws people to The Woodlands and protecting the vision of the late George P. Mitchell, who created the pine-hemmed community in the 1970s.

His critics suggest the outspoken Bunch, 44, has a different goal in mind – furthering his own political career. They describe him as the rigid and uncompromising amplifier for narrow-minded activists and their relentless chorus of “not in my backyard.”

“It’s OK to disagree, but it’s not OK to be disagreeable,” said former board member Mike Bass, who lost his seat to a Bunch ally in November. In particular, Bass said, the township’s recent clashes with Montgomery County over roads and other issues have made the community look like “spoiled children who had to have their own way.”

Bunch said he intends to find ways to work with county leaders on improving public safety and promoting economic development. He recently talked to Montgomery County Judge Craig Doyal about flooding issues.

“We need to create ways to move forward in a positive direction for all involved,” Doyal acknowledged.

But it would be surprising if Bunch changes his populist views given that voters have lined up solidly behind him.

“He stands up for what he thinks is right,” said John McMullan, a board member who is aligned with Bunch. “That’s an attractive quality in an elected official.”

Handily wins re-election

In November, Bunch easily dispatched two challengers despite a shadowy campaign that poured at least $244,000 into television advertisements, mobile billboards and out-of-town strategists to unseat him. What’s more, his running mates – political newcomers Brian Boniface, John Anthony Brown and Bruce Rieser – swept the other three seats on the ballot.

The new board then selected Bunch as chairman, replacing Ed Robb, a local pastor who retired from politics. It marked a generational change in leadership, with an early resident stepping aside for someone who arrived much later.

A California native, Bunch was fresh out of the Coast Guard when he and his wife, Michelle, moved to The Woodlands in 1995. He got a job selling insurance for the Texas Farm Bureau and then used his life savings of $10,000 to start his own agency in 2001.

The Woodlands Financial Group is now one of the nation’s largest insurance agencies, with more than 300 branches in 38 states. It’s based on the second floor of The Woodlands Mall, just above a quirkily stylish clothier and a Williams-Sonoma store. Bunch said he picked the location in 2004 because the mall offered the most affordable space with room to grow and “excellent exposure” for the brand.

When Bunch decided to enter his first political race in 2012, he filed the required paperwork on the way home from work, minutes before the deadline. He hadn’t talked about it with anyone but his wife. He had no base of support and no plan for winning a seat.

“I was a neighbor and an entrepreneur who wanted to run because I enjoy service,” he said.

During the campaign, he received the backing of the Texas Patriots PAC, a fledgling tea party group based in The Woodlands. The enduring relationship has benefited both, with the group working to turn out voters on his behalf and Bunch supporting them financially. His biggest contribution was $25,000 for a table at a fundraising dinner headlined by Donald Trump last year.

Close ties with tea party

Some view the bond between Bunch and the group with suspicion, saying they injected partisanship into local politics. In 2015, for example, the race for three at-large seats on the township’s board devolved into a caustic contest between competing slates. Two of the three Texas Patriots-backed candidates won seats.

Bunch said he doesn’t take directions from the group and doesn’t tell it what to do. He attends its meetings when asked to speak about local issues.

“People think we’re trying to rule the throne, but we just have issues important to us,” said Bill O’Sullivan, the Texas Patriots’ treasurer. Bunch and the group “have a similar goal,” said O’Sullivan. “We don’t want to see The Woodlands cut up with six-lane roadways.”

Together, they showed their political acumen last year by rallying voters in The Woodlands to defeat a $350 million bond measure for new and improved roadways in Montgomery County. In particular, they objected to the proposed extension of the Woodlands Parkway through undeveloped land west of the township, saying the project would exacerbate traffic problems.

The Texas Patriots later supported a slimmed-down road bond plan that didn’t include the controversial parkway project, and voters approved it.

The episode contributed to a growing divide between Montgomery County leaders, accustomed to calling the shots in the once-rural county, and their upstart counterparts from The Woodlands, which accounts for a big and growing segment of the county’s tax base. Some county leaders have accused the township of being selfish/ Bunch and other local officials have complained about a lack of responsiveness from the county – a factor in the township’s 2014 decision to pull out of a deal to contribute money toward a planned customs facility at Conroe’s airport.

Bunch has suggested that The Woodlands might need to become a full-fledged city to shape growth, rather than letting growth shape the unincorporated community, which has some 110,000 residents.

The Woodlands operates with a unique “township” form of government, a hybrid between a private corporation and elected municipal government. If the community becomes a real city, it would have ordinance-making powers, along with its own public safety and public works departments.

Turning The Woodlands into a city

As chairman, Bunch says he will start meaningful planning for cityhood. The community, he said, doesn’t have enough information to make a decision about incorporation.

“We don’t know the pros, cons or cost,” he said. “To me, that’s a failure of leadership.”

But Bass, the former board member, said he isn’t sure incorporation would give The Woodlands more clout.

“You don’t get more respect by changing your legal designation,” Bass said. “You get it by the way you act. The board is mostly being reactive to what the county proposes. It’s more about objecting than finding solutions.”

A nonprofit group launched by former board chairman Bruce Tough, the longtime board member who was unseated last year by a Bunch ally, used the specter of higher property taxes because of future incorporation as a wedge in the most recent election.

Campaign finance reports show The Woodlands Concerned Taxpayers, which didn’t disclose its donors, spent at least $244,000 on ads and voter outreach to sway the election. The amount was more than double what all nine candidates had spent, combined.

Tough didn’t respond to requests for comment for this article. Before the election, he said he formed the group to protect the township’s “perfect form of limited government,” which produced a “high quality of life” with a low property tax rate.

Bunch’s supporters and critics wonder if he is using incorporation to position himself for higher elected office. He ran for an open Texas Senate seat in 2014, only to fall short of a Republican primary runoff.

He insisted he has no plans to run for another position while his business is growing and his three sons are in school. “My only ambition,” he said, “is to represent this community.”

Matthew Tresaugue
Environment Reporter, Houston Chronicle

The Woodlands Financial Group Spotlighted By Insurance Peers

By Paul Lazzaro

Published 12/14/2016

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THE WOODLANDS, Texas — The national insurance industry has again looked to The Woodlands Financial Group for outstanding performance.

Insurance Business America magazine has selected TWFG Insurance Services as one of America’s “Elite Agencies” in this month’s cover story. Gordy Bunch, president and CEO of The Woodlands Financial Group, notes that only 50 insurance agencies, out of 38,000 in the nation, are given this special recognition each year.

The magazine says their “Elite” list includes independent commercial retail agencies that range from a single office to large corporations with a global presence. “They are leaders in their communities and the industry in terms of revenue, best practices, and community involvement.”

TWFG was also featured as “Best Agency to Work For” in Insurance Journal magazine.

Bunch said he took special pleasure in learning that the recommendations of his employees earned TWFG the 2016 “Best Agency to Work For” bronze medal.

Insurance Journal magazine asked insurance agency employees throughout the nation to complete its “Best Agency” survey and TWFG employees were effusive with their positive comments. TWFG employees responding said the agency’s “Our Policy is Caring” pledge starts at the top in their workplace. One survey respondent wrote that the company’s “owner has great integrity and leadership. He has a heart for helping agents and providing them with the tools they need to succeed.” Another comment described owner Gordy Bunch as “generous with his employees. He is quick to take action when someone is in need. He has provided training and leadership opportunities for each employee.”

TWFG is a national agency with more than 300 retail branches in 22 states and 3,000 affiliations with independent agents in 38 states. TWFG’s national headquarters operates with more than 100 employees located in a suite of offices above The Woodlands Mall.

Bunch was also recently reelected to The Woodlands Township Board of Directors which he now serves as chairman.

For more information about TWFG, visit www.twfg.com.

TWFG Spotlighted by Insurance Peers

The Woodlands, TX, Dec. 13, 2016 – The national insurance industry has again looked to The Woodlands Financial Group for outstanding performance. Insurance Business America magazine has selected TWFG Insurance Services as one of America’s “Elite Agencies” in this month’s cover story. Gordy Bunch, president and CEO of The Woodlands Financial Group, which is headquartered here, notes that only 50 insurance agencies, out of 38,000 in the nation, are given this special recognition each year. The magazine says their “Elite” list includes independent commercial retail agencies that range from a single office to large corporations with a global presence. “They are leaders in their communities and the industry in terms of revenue, best practices, and community involvement. 

TWFG was also featured as “Best Agency to Work For,” in Insurance Journal magazine. Bunch, said he took special pleasure in learning that the recommendations of his employees earned TWFG the 2016 “Best Agency to Work For” bronze medal. Insurance Journal magazine asked insurance agency employees throughout the nation to complete its “Best Agency” survey and TWFG employees were effusive with their positive comments. TWFG employees responding said the agency’s “Our Policy is Caring” pledge starts at the top in their workplace. One survey respondent wrote that the company’s “owner has great integrity and leadership. He has a heart for helping agents and providing them with the tools they need to succeed.” Another comment described owner Gordy Bunch as “generous with his employees. He is quick to take action when someone is in need. He has provided training and leadership opportunities for each employee.” TWFG is a national agency with more than 300 retail branches in 22 states and 3,000 affiliations with independent agents in 38 states.

TWFG’s national headquarters operates with more than 100 employees located in a suite of offices above The Woodlands Mall. Bunch was also recently reelected to The Woodlands Township Board of Directors which he now serves as chairman. The company’s web site is www.twfg.com.

For further information: Gordy Bunch 713-416-0789, gordy@twfg.com

GORDY BUNCH: Year-End Annual Bonus Do’s and Don’ts

By Gordy Bunch, gordy@twfg.com

As we approach the end of 2016, many business owners and managers will be facing holiday or annual bonus decisions. This time of year is particularly stressful for all involved as many employees and their families await the determination of the bonus amounts to make decisions. Think Christmas Vacation where the Griswold family had planned to put in a new swimming pool with Clark’s annual bonus only to find out he received a one-year membership to the Jelly of the Month Club instead of his usual cash bonus. Unfortunately for Clark, he had already spent the money expecting it to come in as it had year after year.

Business owners and managers also deal with anxiety over the bonuses while dealing with their own family stresses, annual profitability goals, and the desire to be fair to all concerned. I deal with these issues every year trying to make sure I take care of those that take care of the business throughout the year. Here is my own checklist of do’s and don’ts for deliberation when it comes to annual and holiday bonus planning.

1. Do not make emotional decisions based on the last interaction you had with an employee, but do keep track of their positive and negative contributions throughout the year to ensure a balanced and informed assessment when allocating bonuses.
2. Do not over promise compensation but do communicate ranges of potential bonuses with specific achievements identified, so everyone knows what is needed to earn a bonus. This is critical and should be included in annual reviews of employees who may receive additional annual compensation.
3. Do not compensate every employee equally. Establish written production bonus plans so those who contribute the most are compensated based on performance. Nothing will run off top-performing employees faster than handing out a one-size-fits-all bonus to them and to those who perform at a much lower level.
4. Do not reward under-performing employees but do review why they were not considered for an annual bonus. This should not come as a surprise as it should be a review based on ongoing performance communications that have occurred during the year.
5. Do not forget to allocate funding for bonuses in your annual budgeting, and account for them by setting aside accruals over the full calendar year. This enables business owners to be prepared and have bonus money on hand, making the distribution more efficient and far less financially stressful.
6. Do not bonus your company into a loss as no one wins if the company is struggling or goes out of business. It is important to maintain your industry’s standard profitability margins to protect the company’s value and ongoing operations.

Unnecessary holiday stress can be avoided with proper communication throughout the year. A bonus plan that clearly identifies what is required to achieve one, and frequent performance reviews should have you and your employees entering the holiday season with one less thing to stress about.

I hope the “Bunch on Business” articles contributed this year have been helpful, and I want to wish you and yours a very Merry Christmas and a New Year filled with success.

Richard “Gordy” Bunch is the EY Entrepreneur of the Year for the Gulf Coast for Products and Services. He is the founder, president, and CEO of The Woodlands Financial Group based in The Woodlands, Texas. Submit suggested topics for future business columns to him at gordy@twfg.com, or through the editor of this publication.

TWFG Ranks Number One in Texas Personal Lines Insurance

The Woodlands, TX, Dec. 8, 2016 – A new report from Insurance Journal magazine ranks TWFG Insurance Services as number one in Texas for Personal Lines (Homeowner and Auto) insurance revenue among the Top 50 independent Personal Lines national leaders. Gordy Bunch, president and CEO of The Woodlands Financial Group responded to another year of TWFG earning the number one spot in Texas, “We are number one because our branches everywhere build strong relationships with families – our customers. We don’t compromise quality of coverage just to offer a lower price, leaving our customers vulnerable in the future,” he said. “Our successful business model allows us to provide hundreds of agents with tools and plans that give TWFG clients the broadest possible options for coverage from more than 200 carriers.”

TWFG also appears in the top ranks of Property and Casualty Insurance, ranking in the Top 30 of the 38,000 independent insurance agencies in the nation, as reported by Insurance Journal. The multi-faceted financial group of companies has another expansion of its national headquarters underway in The Woodlands, Texas. Gordy Bunch founded the company with $10,000 here in 2001. TWFG has grown to become a national agency with more than 300 retail branches in 22 states and 3,000 affiliations with independent agents in 38 states.

For further information: Gordy Bunch 713-416-0789

gordy@twfg.com

Your Business Planning is Critical

By Gordy Bunch

October 2016

Business planning is critical for all companies to succeed long term. In the early years of business development small businesses can get by with seat of their pants planning. Some small startup businesses fail to launch spending too much time on perfecting their plan prior to engaging in their business. A great business plan without any activity will lead to premature failure.

As your business matures it will require more thoughtful focus and multi-year planning. Items you need to plan for include:

1. Projected capital needs- Do you have enough capital on hand to execute your plans? Is there a need to establish a line of credit? Have you considered scheduled useful life of your equipment needed to operate the business? Establishing a capital reserve for known future replacement items helps establish your working capital needs.

2. New positions to add- Avoiding the peter principal of promoting people above their competency level requires you to review your staff annually. Do you have the right folks with the skill sets and specialization needed for your business this year, next year, or 3 years from now? As your company grows you will need staff members that can grow with you and that have experience at the levels your business aspires to reach.

3. Expansion planning- Is your business model or product sufficient? Do you need to expand into other complimentary areas within your industry? Geographical expansion? Asking these questions can uncover new business opportunities.

4. Strengths- Identifying what your company does best is critical for you to know where to invest for the future. If you are particularly strong in a market, that should be where your capital and time is spent.

5. Weaknesses- Acknowledging areas of weakness is the only way to begin to take actions to improvement in those areas. Sometimes eliminating products or services that you are not good at providing is the smartest thing you can do. It frees up capital, time and focus for the areas where your business is succeeding.

6. Competition- What is your competition doing and are there any disruptors entering your market? Think about the cell phone’s impact on land line providers or Netflix’s impact on cable and movie rental services. Are there obvious threats to your business and how do you stack up to the competition? These are the areas you have to focus on because if your customers are migrating to a new business model you need to be aware and adapt to remain relevant. Remember the days when you went to a local travel agent to get your plane tickets?

There are plenty of planning guidelines available for businesses to use. I choose to focus on KPI’s (Key Performance Indicators) and review monthly. Many of the answers to the above questions come from reviewing our monthly management reports. It’s never too early to start planning for 2017 and, depending on your industry; you may need to add some of your own industry-specific questions.

Richard “Gordy” Bunch is the EY Entrepreneur of the Year® for the Gulf Coast for Products and Services. He is also the founder, president, and CEO of The Woodlands Financial Group based in The Woodlands, Texas. You may submit suggested topics for future business columns to him at gordy@twfg.com, or through the editor of this publication.

Invest In Your Company’s Most Valuable Asset: Your People.

Bunch on Business by Gordy Bunch

Whether you own a small family business, or are the CEO of a large international corporation, investing in yourself and your staff through personal and professional development, will be the single most important demonstration of leadership you make. The achievements of your team directly correlates to your success as a leader. It might seem obvious, but this area is an often under-estimated aspect of building a strong, profitable business that intends to be around for the long haul.

The cost of not developing your talent far outweighs any investment you would make providing access to classes, training or mentoring programs. Productivity, morale, brand reputation, the company’s profits, to name a few crucial areas, are all at stake.

It is certain, not probable, that valuable time, money and energy is wasted by, and on, poorly or untrained executives, management, and staff. The underdeveloped become “underperformers,” ensuring the leadership never has to take full responsibility for not meeting key objectives. It is also certain that the untrained and underdeveloped cannot produce the full potential results for any initiative in which they are involved. Quality suffers, deadlines are missed, budgets are blown, teams are demotivated, and your star performers leave.

A+ Staff want to work with A+ managers, and A+ managers want to work with A+ executives. A+ executives want to build great companies with other A+ executives. A+ at any level requires ongoing personal and professional development and training, including you. No title or number of years of experience exempts anyone from further development.

Without contemporary skills acquired through ongoing development, people are left to survive on past experience alone, which may no longer be relevant. Would you be willing to have a major medical procedure performed today with a surgeon who stopped training in 1982?

Take an honest look at your current investment and commitment to your people, your company’s future, and the impact of doing too little, or nothing at all. Does everyone have a clearly defined career path that they have had a part in creating? The receptionist? The Executive Assistant? The CFO? Are your executives and management successful in actively recruiting, mentoring, and developing the company’s future leadership? Is everyone encouraged to participate in annual personal and professional development programs that exceed minimum requirements for industry compliance?

Are you leading by example? Everyone will look to you for permission to grow. Many employees will not proactively request training and development for fear it will be a sign of weakness. Make it clear that it is highly encouraged, if not required, to develop oneself further to benefit themselves and the company. Be leery of those who do not see a need for further growth.

Ensuring these practices are in place will cultivate an environment of gratitude, pride, and trust, with everyone being well trained, confident and respected. Your people are your greatest asset or your greatest liability. Your investment in them is an investment in your company. Their future is your future. Be honest with yourself and be ready to take meaningful action. You can’t afford not to.

Richard “Gordy” Bunch is the EY Entrepreneur of the Year® for the Gulf Coast for Products and Services. He is also the founder, president, and CEO of The Woodlands Financial Group based in The Woodlands, Texas. You may submit suggested topics for future business columns to him at gordy@twfg.com, or through the editor of this publication.

The Woodlands Financial Group Celebrates its First 15 Years

Gordy Bunch Reveals TWFG “Secret to Success” in the Insurance Industry

THE WOODLANDS, TX, August 22, 2016 – The Woodlands Financial Group is celebrating its 15th Anniversary with top industry rankings and the launch of a new national insurance company, Gordy Bunch, founder, president, and CEO, announced today.

“Bunch looked back over 15 years and said, “I founded TWFG, as an independent financial services and insurance company in The Woodlands with only $10,000 in the bank. I could not know that just days later the tragedy of 9/11 would paralyze the nation. It was the worst possible market condition to start any business, but I believed I had developed a unique product and business model that had the potential to turn the insurance industry on its head.” Bunch revealed one of the “secrets” to TWFG’s success. He felt that his TWFG business model would set “captive agents free” and could offer policyholders lower premiums. Bunch explained that the “captive” phrase is an industry term for agents who are obligated to sell only the products of their single “big name” company. TWFG, as an independent agency, offered access to more than 200 insurance companies at lower costs than what “captive consumers” were being asked to pay.

In 2015 TWFG recorded more than four-hundred million dollars in written premiums and has grown to 334 branches in 17 states, with over 100 employees in its Woodlands, Texas, home office.” We’ve come a long way and a lot of talented, passionate people have joined us through the years, rolled up their sleeves, and worked hard to get us here,” Bunch said. In addition to the TWFG branches and staff, there are more than 2,000 General Agents writing TWFG-managed insurance products, protecting 26 states. There are 38,000 independent insurance agencies in the nation, and in 2016, TWFG ranks #32 for all lines (commercial, homeowners, auto, etc.), #8 nationally for personal lines (homeowner, auto, etc.), and #1 in Texas for personal lines.

When asked what comes next for TWFG, Bunch said, “I’m looking forward to what we create in the next 15 years and beyond. We recently had a soft launch of twico© (twico.com), which is our proprietary national insurance carrier offering homeowners insurance, and with it The Woodlands Financial Group has the opportunity to turn the insurance industry on its head again.” He shared congratulatory remarks from Carlos Cantu, a veteran TWFG million dollar club member in Dallas, and one of the first agents to join the company. “I’ve been here almost since the beginning, and we have become a family. No matter how much we’ve grown, we’ve never lost touch with that spirit of fellowship and success.” Bunch said he is proud to announce that more than a quarter-of-a-million policyholders are also now part of the TWFG family.

For further Media Information:

Gordy Bunch, 713-416-0789, gordy@twfg.com

TWFG Celebrates 15 Years in The Woodlands and The Nation

THE WOODLANDS, TX, August 15, 2016 – How do you count success? For Gordy Bunch and The Woodlands Financial Group it means moving up from the bottom of the 38,000 independent insurance agencies in the nation into the Top 30 of the Top 100, while also ranking as number one in Texas. As TWFG celebrates its 15^th anniversary, since its founding in The Woodlands with $10,000 in 2001, Bunch looks back on the past 15 years with both satisfaction and amazement. “In 2015 we recorded more than four-hundred million dollars in premiums written. We grew rapidly from just one employee and me to 334 branches in 17 states. I am happy to say she is still with the company. TWFG-managed insurance products are now protecting more than a quarter-million policyholders in 26 states, serviced by 2,029 active General Agents. We are number one in Texas for Personal Lines (homeowner and auto) insurance,”

“Just days before the tragedy of September 11, 2001 paralyzed the nation, I launched an independent financial and insurance agency as The Woodlands Financial Group,” Bunch recalls the worst possible market conditions. “Everyone was concerned about national and worldwide threats during those troubled times, so they were not yet ready to apply those concerns to their personal risks. But I knew I had developed a unique product which was not the one-size-fits-all insurance offered by the ‘big boys.’ Agents who work for the giant brand name insurance companies are what the industry calls ‘captive agents.’ These agents are restricted to offering only their own company’s insurance products. TWFG turned the industry on its ear by providing ‘the best of the Bunch’ to each customer, fitting the policy that offers the most applicable coverage and cost to every individual, family, and business. We deal with more than 200 insurance companies so we give every one of our local and national agents the freedom to offer multiple options to our diverse group of customers.”

“We began TWFG with another unique dimension to our winning strategies and that is to serve our policyholders with professionalism and integrity. We proudly boast that ‘Our Policy is Caring^©. We expect to improve even on that service pledge as we move into the next stage of our corporate life with a physical expansion, more agents in more cities, new products that are being demanded by the marketplace, and taking another giant step towards our original goal of reaching one billion dollars before our 25^th anniversary.”

Know Your Customer to Know Your Business

By Gordy Bunch

August 2016

Aspiring entrepreneurs often ask me for my opinion on their creative ideas, and there have been a few instances where I have been very impressed with the ingenuity and originality behind them. Too often is the case, however, when asked the following five questions, the aspiring entrepreneur is not prepared to answer the real rubber-meets-the-road questions about their business model, strategies and their target audience; the customer.

1. Who will be the customers that will use and buy this service or product? It is imperative to know who your target market is, or that a market even exists for your proposed idea. This can be tested through talking initially with trusted friends, family, and professional peers, and further tested through market research and focus groups.

2. Who are the competitors of similar services or products? You need to know your competition; otherwise, you will be blindly entering into a business with insufficient knowledge of competitive threats. Your competition will certainly know you, and will take advantage of your lack of in-depth knowledge.

3. Companies who market successfully have a strongly crafted and clearly communicated Unique Selling Proposition (USP). What differentiates your service or products from the competition? If you are unable to distinguish yourself with ease of use, pricing, quality, service, or design, it is unlikely you will stand out in the marketplace and gain market share.

4. If your idea is a new concept, service, or product, who would use it? Is there demonstrable demand for this unproven idea? Why hasn’t someone else already launched this business? Are there regulatory, licensing, environmental or other barriers to entry, or are you like Steve Jobs and just know what people want before they do? If you have that kind of money behind you, go for it, otherwise further market research and focus groups may be in order for proof of concept and viability.

5. What does the service or product cost to produce? What will profit margins look like and what volume will it take to produce a profit?

Many entrepreneurs launch their businesses without having solid answers to these questions, and believe the creativity behind their ideas will be enough to see them through. Keep asking yourself these questions from the inception of your idea, and then again, year-after-year, to ensure your business doesn’t become obsolete. Where would ATT be today if the leadership wasn’t willing to re-evaluate their business model and continued to offer only landline phone service? Blockbuster Video failed to ask these questions, relying entirely on past success all the way to bankruptcy. They ignored emerging innovators like NetFlix, RedBox, and Apple TV, and are now a mere footnote in business history.

(Disclosure: I have long been an ATT stockholder.) Richard “Gordy” Bunch is the EY Entrepreneur of the Year® for the Gulf Coast for Products and Services. He is also the founder, president, and CEO of The Woodlands Financial Group based in The Woodlands, Texas. You may submit suggested topics for future business columns to him at gordy@twfg.com, or through the editor of this publication