Starting a new business requires full concentration and planning besides other considerations. There is no limit to becoming a successful entrepreneur. It doesn’t need a degree or lots of money or even business experience to start your own business. There must be a unique idea in your mind and a strong plan; but it needs determination, creativity and business insight to execute that idea.
Know some interesting facts about why startups fail;
- 50% of small businesses vanished from the market in the first four years of establishment.
- All small companies started during 2011, only 4% of the businesses survive till the 2nd year, 3% stay alive till the 3rd year, 9% functionally working till the 4th year.
- Cash ran out (29%), no need in the market (42%), the team is not good (23%) and failure due to competitors (19%) are the top reasons for small businesses fail.
This means that you must need to know where you are going and what in your head. Is there any need in the society you are planning to launch your product or service? Then comes the physical creation of that idea into a reality. It requires a proper plan and implementing that plan with the right people timely. Your plan must be based on these points to be practicable and try to obtain unsecured business loans.
Here we have piled up 5 things to consider before starting your own business.
- Identify your skills
Industry knowledge and risk-taking is the key factor in becoming a successful business owner. If you know well about your weaknesses and strengths, this can help you better in conducting a business plan mannerly. The required skills in becoming an entrepreneur are divided into;
- If you want to be a good businessman, your personality should have positive traits, for example; resilience, risk management, know how to excel and confidence.
- If you are running your business on your own, even then you need to have great professional relations and communication skills with customers, dealers, investors, and marketers.
- Being a businessman, you need to be on the top of your game every single moment. If you have practical skills like; goal setting, business knows how decision making power. By practicing these skills, you can take your business to the optimum height.
- Besides business expertise, a businessman should have the latest info on how to market his/her business to the audience that already has been selected. In this era, we have many platforms like social media and third-parties websites that can help you a lot in promoting your business through influencers.
- Target your Customers
If you have an excellent service or product, but there are no customers who will buy it, such a business is not going to work for you. But if you are starting a business and you know pretty well before you start a business what to sell, you should better study if there is a market for your business. Conduct surveys, know your competitors, do come up with a unique selling point. And try to figure out people’s problems and facilitate them, this is the best way to do business nowadays. If you know the solution to the people’s problem, it would be easy enough to identify who your target market is. There is a saying that every startup founder or entrepreneur must learn by heart; “product or service for everybody; is a product or a service for nobody”.
- Make a Financial Plan
Before starting a business, you should thoroughly work on your current capital level and how much amount you are ready to invest. Some points to keep in mind when drafting a financial plan for your business or a startup.
- Create a cash flow statement, as it helps in calculating the balance by merging overall costs, sales and collectibles every month. The cash that remains back after deducting the expenses is enough to let you know about your capital and needs.
- Auditing Market Demand
Before jumping into your business idea, one needs to learn about business skills, market analysis, competitors and industry trends. Your market research can help you determine which product and service are in demand, and you can increase your market share and get maximum profit. Some useful and basics of market research are;
- You have to know the purpose and need of the product or service you are offering. Famous businesses identical to Starbucks as well Intuit; distinguish them and enhance their products by using recommendations of the consumers.
- There are lots of credible sources that can help you in gathering information on the business, economic conditions and market surveys that can impact your business. You can collect customer’s reviews and recommendations to spot relevant info about your service or product· By using trend analysis technique, you can acquire data on the changing behavior of customers. If the results are not according to your plan, you need to rework on your plan again. There are some tools, including Google Alert & Mention, which can determine trends and reviews of your business.
- Be ready to face Failure
There isn’t a single business that enjoys a smooth and perfect ride to success. If you have an exit plan with you, this can deal with any kind of failure. While planning keeps this in your mind, what you will do if you get to see failure in your business. Are you going to close everything and step back? You better have Plan B or C with you, in case of the failure you will able to stand there and work on the weakness.
The successful business depends on the vigilance that you maintain when the company is flourishing. You can start by working on these strategies but do realize that your work is not going to be done. Once a business is started, it should be working without any pause. Simply you can’t take on your laurel. Research the market thoroughly, do hire good and honest people, and work hard to build a whole new empire.