For so many, the dream is to be your own boss. However, the idea of leaving stable employment and starting your own business can be very intimidating. However, with proper planning, zeal, and diligence, you can avoid most of the pitfalls. Without further ado, the following are a few of the things you need to consider before starting a business.
Are you planning on doing this alone or are you planning to have partners? If it’s the latter, do your partners complement your skill? What are the pros and cons of either? Partnerships offer shared capital contribution but slower decision making. If alone, are you registering a sole proprietorship or limited liability company? If it’s the latter, you have to involve directors.
You have the product idea, but have you evaluated the market’s need for it? You need to conduct in-depth market research and determine the suitability of your model. Try determining what your potential competition is finding ease or difficulty in selling. What do they regard as slow, dead or fast-moving stock? Identify all those who cater to the industry online and offline. If you capitalize on the research, it can help you develop strategies that target your market efficiently.
Potential Customer Feedback
Do people find value in the product? Take your customers’ feedback on your product, design, pricing, and usability very seriously. This will help you to avoid launching an unpopular product that results in low sales and causes business failure.
Sort out your labor, infrastructure and funds.
Funds: are your savings sufficient? Are there personal belongings you can sell? Friends you can borrow from? If not, you can seek loans from banks and other lenders. You can also seek hard money loans from private investors and companies by leveraging your home’s equity.
Labor: does your product design need a small or large team of workers? Do you have skilled operating and customer support staff? Have you appointed effective floor and supply chain managers? Your labor requirements determine your marginal output of labor and salary expense. If you do not have the funds to employ everyone necessarily, maybe you should seek partnerships.
It’s also essential to hire or contract a lawyer and an accountant.
Infrastructure: this includes the technology present and available to the company. You need to get a good quality printer and scanner, business line, appealing logo and website. If you are planning to open a supermarket, you need a POS system.
Without proper resource management, you won’t be able to succeed at your desired pace.
Find out about the Wi-Fi services offered in the area. You should also have a good understanding of the banking laws and any legal obligations, both locally and internationally, if you are planning to expand.
Passion for Your Product
This plays a critical role in keeping you motivated. Money is a great motivator, but without passion for your product, your business is likely to fail eventually.
Clear All Personal Outstanding Debt
Focus on clearing all credit card debts and other personal loans to avoid limiting the growth of your business.