Starting a business is a big achievement, especially for new entrepreneurs or employees who are tired of routine jobs. It is encouraging since you attain freedom and there is no reporting to a boss and have a possibility of high profits. Although a good decision, it can be challenging, stressful, and not as simple as it may seem. Many businesses are started, with very few succeeding while the majority fails. There is a need to plan well before starting since lack of it may be disastrous to a business in the future.
Here are some key factors to consider when starting a business:
Startup Capital
One cannot think of a business, and then decide on borrowing money to start the business. A business requires a source of capital that is efficient since some unexpected needs arise after some time. Options that can be considered are getting a loan from a bank, requesting support from friends and family, or finding an investor who is willing. At times these plans might seem not to work when a large amount of money is required. In such a case, it is advisable to start small and expand as profits come.
Part-Time or Full Time
It is the first decision that a new entrepreneur makes. The important questions which should be answered are if employed, should one quit his job to attend to the business, or should it be a part-time venture. When unemployed, consider whether you prefer an 8-5 job if the opportunity comes, or you will do the business. The decisions enable one to stick to plan and have better time management.
Competition
This is as a result of many people doing a similar business. Research has to be done on how competitors are running their business, their customers, and the pricing strategy they adopt. Also,find out how good they are at the business, and the challenges they face. You should learn from their mistakes to be better than them. If the market is flooded with a particular product, before you start selling it, ensure that your strategy is right to penetrate the market.
Target Market
It is crucial to consider who the customers are, the particular product they prefer, and the after-sale service preferred. If the majority of customers belong to a particular age, ensure they are engaged through talks, questionnaires, and social media to understand their needs. Also, try to make one-on-one talk to possible clients to build trust and loyalty even before the business picks up.…
