There are many steps to starting a business, and many options that deserve consideration as they will determine the survival of the business. Commitment to the success, sufficient capital and the thriving of the business is the most important criterion to consider before starting any business. Only a committed business owner will pull through the most difficult days.
The Entrepreneur believes that every business owner must possess persistence, worth ethic and adaptability as personal attributes to succeed in the business. In reality, the life of an entrepreneur is a roller coaster and it will be important everyone looking to start new business put the following into consideration before setting out;
1. What Do You Know About the Business?
One recipe for instant failure as a businessman is to venture into a business you’ve had no inkling about. Do you know why some family businesses have succeeded and stood the test of time? That’s because the knowledge of the business has been passed down many generations. There’s a reason why that small little restaurant in the corner of your small town still see an inflow of customer, it’s due to the recipes and knowledge that still remain valid and a crowd puller.
To succeed in any business, you have to know a lot about the business. You are not the first to come up with that very idea, someone must have thought it up from among the 7 billion people on earth. The reason why no one has executed it is lack of knowledge. Success is never measured by ideas, but by the ability and capacity to execute successfully.
2. Is There a Market For Your Idea?
As earlier emphasized, there’s a difference between idea and execution. Part of the ability to execute your business lis pinpointing the market for it. You won't want to sell a boat on a desert! There’s no market for your product if no one has an immediate use case. By starting a business where you’ll offer a product you must be certain there’s a market or you are ready to create the market for the product or services.
Sometimes, there’s a market but it’s already dominated by the whales. There must be a way for you to break into the market. Cut a slice of the market share for your product. Else, you will close shop for a short while. Customers are the lifeline of every business and a business without a client base will die a natural death in the long run.
3. Do You Have the Capital Base to Start the Business?
Having a business idea is one thing, possessing the capital base to get it off ground is another? Business especially the small and medium scales rely on their own personal savings, credit cards, family, relatives and friends for the initial capital. Some business owner will continue to run debt on their credit cards believing they will get it off ground soonest and recoup their investment. The grass is not always green on the other side.
With the growth of your business, the traditional means of funding will be inadequate and you will need to approach final institutions for capital loans or funding. You can quickly get loan online or banks. Bank will only give out a loan based on your business plan and the prospects of your business.
4. What Will Be Your Business Structure?
Ascertaining your business has potentials will help determine the business structure to adopt. You either have the options of starting out fresh or buying over an existing business, both choices are dependent on your funding and business idea. Starting afresh has its own benefits as you are your own boss, you can work out a flexible schedule for yourself and see your business grow from the cradle. However, buying an existing business means building on an existing platform, which already has a customer base and has stocks and manpower in place.
Both have its own implications for your business and idea. Starting out a new business means lots of investment on your energy, time and money. On the other hand, buying an existing business can mean buying a poor image, liabilities and you’ll still spend a significant amount of money.
5. How Do You Market Your Business
You already know your business cannot thrive without a growing customer base. That’s exactly why you must have a marketing plan in place. It should form a strategic part of your business plan. No one will know the worth of your product or service until you pitch it to them. You might have the best products statewidebut without a marketing strategy that takes it to the door and mind of your customer, they will never know. Ensure that your marketing plan is crystal clear with the outlined periodical objective.
In your marketing plan, including the analysis of the current state of the industry, what you intend to achieve as a business, how you will achieve the set objectives and amount of resources needed to bring this to reality.
6. What is the Position of The Law towards Your Business?
If you are not familiar with rules and regulation, you need to hire someone that does. Being on the wrong side of the law is not always a palatable situation you will ever want to find yourself as a business owner. In some lines of business, there are specific licensing and permits to be granted by the government before the commencement of the business. Ignorance of the law will not be an excuse.
Through the help of legal personnel, you will easily scale this hurdle. You can also set out to carry out the legal requirements on your own if you are low on capital or trying to minimize the expenses.
As exciting as starting a new business appears to be, there are potholes and difficulties that you will encounter during the journey. However, by putting into consideration all the above factors before starting out, you are already positioning your business in the path of survival and success.
Sawaram Suthar is head of marketing at Acquire, and also a founder of Jagat Media, a digital marketing agency. A digital marketing consultant, he has experience in things including branding, promotions and page optimization, along with research and strategy. He has an MBA from the University of Pune. Anyone can find him on @sawarams.