Sawaram Suthar is the founder of TheNextScoop and Jagat Media. A digital marketing consultant, he has experience in branding, promotions, page optimization, research, and strategy. He has an MBA from the University of Pune. Anyone can find him on Twitter @sawarams.
What are the different things to consider before starting a new business? Let’s find that out.
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 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, work 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 for everyone looking to start a new business to 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 clue about. But do you know why some family businesses have succeeded and stood the test of time? That's because the knowledge of the company has been passed down many generations.
There's a reason why that small little restaurant in the corner of your small town still sees an inflow of customers, and it's due to the recipes and knowledge that remain valid and a crowd puller.
You must know a lot about the business to succeed in any industry. You are not the first to come up with that idea; someone must have thought it up among the 7 billion people on earth. The reason why no one has executed it is a lack of knowledge. Ideas never measure success but by the ability and capacity to complete 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 is pinpointing the market for it. You won't want to sell a boat in a desert! There's no market for your product if no one has an immediate use case.
By starting a business offering a product, you must be sure there's a market ready to create the need for the product or services.
Sometimes, there's a market, but the whales already dominate it. So there must be a way for you to break into the market. Cut a slice of the market share for your product. Otherwise, you will close shop for a short while. Customers are the lifeline of every business; 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?
A business idea is one thing; possessing the capital base to get it off the ground is another. Small and medium businesses rely on their savings, credit cards, family, relatives, and friends for the initial capital.
Some business owners will continue to run debt on their credit cards, believing they will get it off the ground soonest and recoup their investment. Unfortunately, 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 loans online or from banks. However, the Bank will only give out a loan based on your business plan and prospects.
4. What Will Be Your Business Structure?
Ascertaining your business has potential will help determine the business structure to adopt. Then, you can either start fresh or buy over an existing business; both choices depend on your funding and business idea.
Starting afresh has benefits as you are your 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 with a customer base, stocks, and workforce.
Both have their implications for your business and idea. For example, starting a new business means lots of investment in your energy, time, and money. On the other hand, buying an existing business can mean purchasing a poor image and 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 precisely 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 statewide, but without a marketing strategy that takes it to the door and mind of your customers, they will never know. Therefore, ensure that your marketing plan is crystal clear with the outlined periodical objective.
Your marketing plan includes the analysis of the industry's current state, what you intend to achieve as a business, how you will reach the set objectives, and the number 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 regulations, 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 in as a business owner. In some lines of business, there are specific licensing and permits to be granted by the government before the company's commencement. Ignorance of the law will not be an excuse.
Through the help of legal personnel, you will quickly 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 expenses.
As exciting as starting a new business appears to be, there are potholes and difficulties that you will encounter during the journey. However, considering all the above factors before starting, you are already positioning your business on the path of survival and success.
Subscribe to weekly updates
You’ll also receive some of our best posts today