KEY FACTORS IN STARTING YOUR OWN BUSINESS
Starting a business is one thing and making it successful is another thing entirely. Most times people start a business without adequate knowledge to run it and they end up closing the business thinking that starting a business was not for them.
Having little knowledge about running a business gives room for bad planning, poor management and wrong approach.
Where, When, How: 7 Factors to Consider When Starting a New Business Startup
Setting up a business involves a long process and need some researches, time, commitment and planning. If you are thinking of starting a business of your own, you need not rush it because there are some factors you must put into consideration before starting a business irrespective of the kind of business you want to start.
One of the reasons why others do not succeed in a business is due to the lack of knowledge in handling a business. You might have enough capital to start however if you do not know the ins and outs of handling a business, you might not be successful and stay long in the game.
Here are some important factors to consider before starting your business so that you won’t end up regretting.
7 Points to Consider Before Starting a Small Business
Is your Business Idea Viable?
You need to do a market survey first before launching that business idea of yours. Getting a business idea is easy, but, getting it to run successfully is another thing. You can’t just assume because your idea sound pretty awesome, you just go launch a business under it. It doesn’t work like that in the business world.
Ask yourself if your business idea is viable. Just because your friends and family members says it is a nice idea doesn’t mean it’s going to be a profitable business venture. You can’t base your business solely on personal taste.
It’s crucial to do the necessary market research to determine if you can attract customers to purchase your product or service. You must have a clear picture of the demographics and the desires of your target customer group, so that you can design your offerings to meet their needs.
Do you Have Sufficient Working Capital?
Another factor to consider before starting your business is if you have sufficient capital to run the business till it starts bringing in profit to power itself. Capital is very important if a business must survive.
It is advisable by business gurus to have the available capital that can power your business for at least 6 months irrespective of profit or not. Failure to do this will limit your marketing effort and may result to your business closing.
If you will be employing people, you still need to have their money already save in a bank account to avoid disappointment from your employees.
Are your Customers?
This is another factor you have to consider before starting your business. Have you bother to ask yourself this question and give an honest answer to it? Where can you find them? How do you intend reaching them with your products and services? Online ads, word-of-mouth, billboard advert or TV and radio broadcast?
You need to also take your time to study your industry so you can know how broad or tiny your customer’s base is.
What’s your Fall Back Plan?
It’s estimated that 90% of businesses failed within their first five years of start. Only 10% manage to scale through. With this in mind, what do you have as a backup plan for your business?
Great alternatives can be taking up a job or getting a loan.
Don’t Forget Tax!
You will have to pay tax on the income your business generates. Always consider this in any business model, there are many examples of businesses that have been busted due to taxation which they have owed.
This is one important factor you should not play with if you must continue running your business anywhere in the world.
Do You Have a Written Business Plan?
This can be time consuming but it is worth it if you want to succeed with your business. Having a business plan gives a clear sense of direction. There are many business plan templates online that you can use a guide.
How Will You Generate Sales?
Once you are clear about your target market, this is the next step to consider. The days of hoping on building a business and wait for customers to come and buy has passed decade ago. You must have properly designed strategy on how you intend attracting customers to your products or services.
Having monthly sales goal can act as a motivation for you to find possible ways to generate sales for your business.
All these factors are very important for your business success. You really need to sit down and make proper planning before launching that dream business of yours. Ensure that you understand everything explained in this post, if not, read again.