7 things to consider when starting a business
Business1) Why are you starting a business?
Setting up a business is a time consuming task – you need to be dedicated and focused to be successful. The rewards of starting your own business can be great, but think carefully about whether you have the right attributes and personality to tackle things alone. What is your goal for starting a business? Is it the financial reward or the freedom that comes from being your own boss? What is your motivation?
2) Skills
Identify your abilities and particularly your weaknesses. Be honest and ask others for their opinion. If you are less enthusiastic in certain areas, then outsource these areas of the business or seek professional advice when you need it. Spend your time doing what you’re good at.
3) Company structure
You will need to decide what business structure you will operate under (sole trader, limited partnership, or partnership) and what duties and responsibilities you will have as a new business owner.
4) Financing
Even if you have the best idea in the world, it’s unlikely you’ll make an instant kill. Make sure you have enough money to live on for 6-12 months before committing to self-employment. Alternatives include approaching the bank or an investor. Both options will require a solid business plan.
5) Competition
Thoroughly research all of your competitors. Identify any weaknesses they may have and try to make sure your product or service is better. Competition is a very healthy thing, but you have to constantly do your research and never be complacent.
6) Market
Make sure there is a market for your product or service. Do a lot of market research and take note of what your potential customers are telling you. You can get very useful feedback that will improve your product or service.
7) Marketing
How are you going to reach your target market? The best product in the world will fail if it doesn’t have a route to market. Think about your ideal client: what does he do? What do they read? Where are you going? If you can answer these questions, you’ll begin to identify the best places to advertise.