Starting your own business takes a lot of planning and brainstorming. It’s better to plan everything now than regret later.
It’s heartbreaking to know when you make a mistake that seriously affects your business that would have been prevented if only you took the time to plan.
So if you’re starting a business anytime soon, take your time in considering and planning the following factors:
Yourself as a business owner
Can you do it?
Of course, you can! But make sure that this is what you really want. The reason why you like to get into business should be strong enough to make you strive.
Also, assess your strengths and weakness. Be honest with yourself and be open to hiring people to do the tasks you cannot do.
Do you have time?
Having a business is not as easy as it seems. When you’re an employee, you can focus on your specific job. In business, all areas and departments are all your responsibility. Customer support, sales, marketing, all fall into your hands. Are you willing to prioritize your business over your other commitments? The truth is, you have to babysit your business in its early stages so plan your schedule. Managing your own business often means working more hours.
Do you have the knowledge and skills?
It is easier to engage in business if you already have the skill set to support it. Example, if you want to set up a bakeshop, it’s better if you know how to bake. It’s a big advantage if you have relevant industry experience because you know how things already work.
Goals and Objectives
Be specific about your goals and objectives. Commit to achieving them. What are your goals years from now? Perhaps, you might want to open another store by next year?
Market Research/Feasibility Study
Feasibility studies are often done to determine if your business idea has potential in the market. But you don’t have to complicate it. Just assess the following factors:
What product or service will you offer? What is unique about your business idea? Offering something different will give you a unique advantage over your competitors. But you don’t necessarily need to offer something new, just give what your customers want.
Who is your target market? Are there prospective buyers? Consider your customer’s wants, needs, and their lifestyle.
One of the huge mistakes business owners make is creating a product they think the market wants, only to realize there is no demand for it.
So know your customers first. Solve their problems by offering solutions.
Would you have a physical store or an online store?
When choosing a business location for a physical store, consider its accessibility to your target market. Is the place secured? Is it near your suppliers and key distributors? How about competitors? Know their strengths and weaknesses so that you will be able to challenge the market.
For online stores, plan on how you can introduce your business. Advertise so people online can learn about your presence. A well-built website and social media presence are important to attract customers.
How much will it cost you to start a business? How much are the raw materials, rent, labor, and other overhead costs?
Where can you get the capital? How much can expenses can you absorb before earning an income from the business.
The main reason why you want to do business is that of profit. Keep track of all your expenses so you can maximize your profit. Determine your ROI (Return on Investment).
Is your target profit achievable? How long will it take to earn it? Consider taking a rough estimate before starting a business.
Business and launch plan
Create a well-structured business plan in every aspect including financials, marketing, and operations.
Your business plan sets the direction of your business and keeps you on track once it’s up and running. This includes the strategies on how will you always fit in and the current market analysis to be able to sustain the changes in the industry.
By considering all the factors mentioned above, you are one step ahead of making your business grow.
Things are always hard at first so keep an open mind until you have successfully started your own business.
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Joy Collado is a freelance writer and loves to write about personal finance, self-help, and digital marketing.