Published on March 15th, 2019 | by Stacy Thomas0
10 Things to Do Before Starting a Business
Starting a business on your own is a big decision as it requires lots of determination and grit. Many businesses tend to fail in their initial years due to insufficient research and. Therefore it becomes essential to build a strong foundation in order to commence and launch a new business in the market. Here are a few tips that will aid you to build a strong and robust base for your business.
Research, Research and Research
Before jumping into the business, you may have to identify your potential customers, their needs and the scope and width of the market that you will be operating in. It is important that your product provides some kind of cheaper solutions to your customers that are better than what your competitors are offering. If not then you may have to reconsider starting a business in a particular niche or area. This calls for identifying your group of targeted customers and conducting surveys accordingly. This surveys will give a fair idea of the market along with the requirements and demands of your customers. Remember, there should be greater demand and lesser supply of products and services in the market so as to make your business successful. If you supply goods and services when there is less or absolutely zero demand then there will be no customers to buy your products. Hence, proper research is an essential first step for setting up business.
Starting a business comes with lots of paperwork. You may need to get acquainted with various rules and regulations prescribed by the government. Apart from this, you may have to get your business listed, apply for necessary licenses, obtain tax number, etc. Getting legal work done can be a confusing and lengthy process. You can take guidance of a person who has already started a business or hire a lawyer for the same.
Most of the businesses need huge investments. Running out of finance is one of the major reasons why many businesses fail. Therefore you may not want to splurge all your savings on investing your business itself. You need to consider all the options that you have and choose the least risky ones. Your own savings, borrowed money from friends and family, bank loans or excel capital loans, angel investors and venture capitalists are some of the options that you would like to consider. Always have backup funds in case your business goes spiraling downwards. You may have to learn to cut the extra costs, increase energy efficiency, reduce unnecessary expenses, etc to manage finances. You will also have to adjust with mediocre life for some time and give up on luxuries of life. You may have to consider the worst scenarios and how far you can sustain on your savings. Considering the worst possibilities keeps you prepared for upcoming financial challenges. Don’t quit your 9 to 5 job unless your business provides you a steady flow of income.
Get a good mentor
It’s obvious to not know everything about starting a business. Hence, you may need a good mentor to guide you on the right path. A mentor may be a person who has been in your shoes at one point and has successfully started a business in a niche that is similar to yours. Your mentor may also have a business which is similar to yours in a different area of the city. Some mentors might be easy to talk with while others may be a bit challenging. The best way to go about it is by writing down your doubts and getting them clarified from your mentor by scheduling meetings. Be passionate and persistent but at the same time try not to be annoying.
Be sure that you are passionate
By this step, you have already collected basic information that you need to get started. Now it is the time to answer a most important question. Are you passionate about getting your business started? It is necessary to answer this question because building a successful business takes lots of efforts and a strong determination. There will be times when you may feel like quitting altogether. In such instances, it is your passion that keeps you going.
Get a detailed business plan
By this time you should have got a fair idea about how you are going to make money through your business, which can be possible obstacles and challenges, and how to overcome them. You need to organize all this material and write it down in a single document which will be your business plan. By writing down the idea in a detailed manner, and associating it with the next steps you make it sure that you haven’t missed out on anything. It also helps you to get any doubts that are left in your mind. In case you are looking for outside investors, you can get the same plan formalized and save time. You can revisit business plan time again and modify it as you learn and through your experiences while walking down all the way.
Talk to your friends and family
Talk to your friends and family. Ask them for opinions and suggestions. Seek healthy criticism along with positive feedback. Ask people whose opinion you ‘trust’ and exclude ones who would just give green signal without any second thought. This may help you to find and identify any loopholes that are left in your business plan, rectify errors beforehand and uplift your confidence by setting you on the right path.
Hire the right people
Successful business calls for proper teamwork. Hire people who can work together harmoniously with each other! It is impossible for you alone to get all the things done on time. You may need to hire an accountant, manager, sales personnel, etc who can do their job flawlessly without needing you to interfere. This ensures the smooth functioning of business and also provides you with adequate time.
Small businesses need fewer investments, little infrastructure and pose fewer risks. Remember that today’s multi-giants like Apple, Disney and Microsoft started small with their first workspace being a mere garage. It’s good to dream big. But taking tiny calculated steps is what protects you from major setbacks. It’s understood that you may want to have everything new, modern and upscale in your business, but you also need to consider risks that come along with huge investments. Dsellebts and losses are the last things that any business would like to wish upon itself.
Spread the word of mouth through the community a few months before you set up your business. Give out flyers, paste posters and advertise in local newspapers. In short, make people in your locality aware of your upcoming business venture. This may also help you to attract potential customers.
Getting your business started is definitely a tough task but not an impossible one. With proper research, guidance from a wise and experienced mentor, detailed business plan, proper financial structure, proper advertising, support of friends and family accompanied with your own passion and dedication can aid you to get the business started and get the ball rolling.