A Guest Post by Andi Croft
Deciding to embark on a journey of entrepreneurship is exciting and challenging. There is no guarantee that your plan will pan out, but it is rewarding when it comes to fruition.
Nonetheless, there is no denying that becoming your own boss can be life-changing.
But because of the challenges you may encounter, there are a couple of things that you should look into. That way, you would know that you are treading in the right direction.
Here are the seven vital things that you need to consider before starting your own business:
Turn Your Vision Into Reality
Every entrepreneurial journey starts with a single idea or vision. But how can you bring that to life? It helps you layout a rough business plan to anticipate the obstacles you are likely to face.
At this stage, you do not need to have clear answers immediately. You can come up with a mind-map. This allows you to outline the process so that you can turn that idea into a reality.
Not only this will eventually come up with a formal business plan, but it will also better prepare you for the challenges in the future.
Know the Industry You Wish to Enter
You need to understand clearly the kind of industry you want to involve yourself in. It will not matter how unique your business idea is. Instead, you should also be aware of your competitors in the industry.
The thing is, you need to offer something better than what your competitors have. Otherwise, you will be unable to set your business apart. And you are less likely to attract the right customers.
That’s why you need to assess the market you are entering, understand the industry, know who the major players are, as well as your competitors.
Identify Your Target Demographic
Coming up with a product or service that you are going to sell is not enough. You will not profit from anything if people are not willing to buy it in the first place.
If you want to start a business before you dive headfirst, study if there is a specific market for it.
Know who your customers are, what are their needs, pain points, and motivations?
Choose a Business Structure
Once you know what industry you want to venture into, your target demographic, and the product that you want to sell, the next thing that you need to do is to choose a business structure.
You can either select from a single proprietorship, partnership, or corporation.
- Single proprietorship. You solely own your business.
- Partnership. It is possible to divide your business with another person. You need to have at least two people to help you form a partnership.
- Corporation. Your business will be divided into different people, which are called stockholders. If you are curious about how to start a corporation, you need at least five people to do so.
Estimate Your Start-up Costs
The next thing you need to do when starting a business venture is to estimate your start-up costs. Ideally, you need to gain access to the total cost required to set up and run a business successfully.
After you have set up your business, think about the capital you need to jumpstart your business. Consider the size of inventory you can maintain, credit you can extend to your customers, and credit that you can get from your suppliers.
Note that not all suppliers can give you credits, especially if you are just new to the business.
Decide on the Location
Another thing that you need to consider when starting a new business is the location.
Ideally, you need to pick a good location, an area that gets a lot of foot traffic and easily accessible.
Also, ensure that everything fits well within budget if you are considering expanding. Picking an ideal location right from the get-go will compliment your business in the best way possible.
Timing is Everything
Finally, timing is key. Ideally, you may want to start your business when the economy is booming, and your target industry expands. Still, when building a business, you have to be decisive.
Launching your business at the wrong time will make it difficult for you to succeed. That’s why you must consider the timing, as well as the circumstances.
Over to You
Starting a business is the typical route for people who would like to get out of the 8-5 rat race. And there is nothing wrong with that.
Aside from having the freedom to do what you love, starting a business allows you to be your own boss. It also lets you provide opportunities for your community.
But to dream big is just the start of it all. You also need to believe in that dream and then work towards achieving that goal using a great business strategy.
Also published on Medium.