6 factors to Consider Before Starting a Business
Freedom is what comes into our minds when we think about starting our businesses. The routine of working for more than 8 hours, always confined in some office, and reporting to a boss, are some considerations that make us want to own our businesses.
It is never as simple as we may think since only about 4% of new start-ups manage to reach their 10th anniversary. Half of the numbers don’t even make it past five years. The factors contributing to such failures may include the amount of capital required, the necessary knowledge and expertise, hard work and patience that comes with it, and how long it takes before starting to break even.
Starting a business requires that you put the necessary things together for a smooth and effective journey.
Below are some highlights for you to implement on your path to achieving a prosperous, long-lasting business.
- Business Idea
There has to be an idea, but the nature of your concept is very crucial. It means that you have to offer something that is unique and stands out. TIn order to stand out from your competitors, there are some questions you need to answer, which include:
- What do you require to make it better?
- What can you do that makes a difference compared to your competitors?
- Do you stand a chance to grab some market share in the said field?
Even if your business idea is unique, it has to bring a solution to someone’s problem. Focus on the frustrations other people experience. These people may include; family members, friends, neighbors, and even business partners.
Once you accomplish this, proceed with the measures below:
- Come up with a method that will bring a solution to their frustrations.
- Check out if you have the skills to provide the best solution.
- Countercheck yourself if you are willing to offer them a solution.
- Target Customer
There have to be customers who are willing to purchase your products and services. Study before-hand if your products will be marketable. Identify your target market. There is a saying that “a product or service for everybody is a product or service for nobody.”
- Location
Location is critical when deciding on a business start-up. A retail business requires a well-populated place that is easy to access. For a manufacturing business, choose a location where you won’t incur a lot of money on electricity, water, transportation, and taxes.
Choose a place with available workforce and easy to get raw materials. A place where you can get government subsidies can be ideal. If you are to specialize in a product or a niche, look for a location surrounded by your competitors. For example, an excellent site for a gold jeweler would be a gold mart housing plenty of similar shops.
For offices, you have to consider places with packing spaces, transportation, refreshments, and so on.
Choose a location that is within your budget, has room for expansion, and the one that perfectly complements your business.
- Capital
It would help if you had the capital to start a business and make it operational. It can be in cash or value. To come up with a capital figure, note down the amount of expenditure required to start and operate, which includes assets to buy, cost of renovation, rent, and operational costs.
- Assets Needed
Businesses need assets to be fully operational. Some of these assets may include: computers, equipment, furniture, vehicle, etc. consider listing the item as well as its price.
- Marketing
A business cannot sell without a good market plan. A company may fail or succeed as a result of marketing. It is vital to choose the best marketing platform that works well for your business.
No plan is ever perfect for a business, but these tips will help you start your business and take it to the next level. However, prepared you are for your business journey; sometimes, things may receive an unexpected channel. Adapting to the sudden turn of events may lead to a successful business in the long run.