There is no specific time to decide and embark on the journey of entrepreneurship. It is a risk journey taken only by the brave. One can never set a time when they are ready to plunge into the world of business. Despite many challenges and lurking obstacles, the destination always guarantees great reward. But before taking the venture, here are five things you should think and analyze before starting a business.
5 Things to consider before starting a Business:
Establishing a stable business is not as easy as making a pie. To make your business stable and earn profits from it you need to keep certain points in your mind before you actually start your business.
1. Change your Business Idea to a plan
An idea is intangible while a plan is tangible. The tangible in this case will gear us forward. Some people have very good business ideas, but due to lack of a good plan, the ideas subside. Make a draft of your plan and carefully include all the obstacles and the anticipated challenges. Draft possible solutions to the challenges. Map out all the way possible you will turn out your idea to money. In the plan, don’t be too rigid, allow for flexibility because the need to change is always here with us. Flexibility contributes a great deal to the success or failure of your initial plan. After making a formal business plan, share it with your friends and take their views. Note them down and then adjust your plan accordingly. A plan is like seeing the end from the beginning.
2. Do an extensive Research
Before plunging into a given industry, take time to uncover basics and majors, concerning the industry. Its prudent to know who are the main competitors. Ian Wright the founder of the British Business Energy recommends analysis of competition in the industry as a key thing before establishing a business. It is all about what you can offer that the competitors cannot. What will you offer to create customer loyalty? Do a survey and analyze demographics of importance. What is the market? How best can it reached? Which is the best location? Analyze the demand and any shortages in supply. Note all these details
3. Prepare the Capital
Any business needs capital to set it on the go. Any prudent entrepreneur must have enough capital. Capital needed to begin a business is directly proportional to the size of the intended business. Starting of with little or rather insufficient capital will be a hurdle and thus impact the business negatively right from the start. Rather than beginning with great uncertainties, seek diverse sources of capital. First share the idea with your friends and family and seek their financial help. Second contact investors and other venture capitalists who will be ready to by your idea. Present your idea to them in a convincing manner. Talk like a person who is sure that the business will succeed. Thirdly, Apply for loans from various commercial banks. And any other saccos which fund small businesses. If the amount of money amassed is less than the expected, seek more sources by convincing other investors of the plan and the money at hand.
4. Analyze the Market
Other than doing research about the Industry, take time to analyze the market. Jeff Bezos the richest man according to Forbes, outdid Bill Gates by analyzing the market well. Bill Gates helped Jeff Bezos to get the market. The online business by amazon uses some software made by Microsoft. Ok, that aside, the customers who buy through online platforms are many than those who use Microsoft software. In this case go for a market that is already large or has a potential to expand. Some of the rapidly growing sector in business is e-commerce.
5. Pick a good business partner
A business partner can greatly contribute to the success or downfall of a business right from its start. As the Old adage goes “Together we can travel far” Operating a business alone is tedious and unreal. Thus, one has to consider A good business person. After picking the right person, define the roles and responsibilities of each person, discuss the investments, operations and how profits will be shared. Take legal measures to protect your engagement. It is not a good idea to partner with a family member.
Venturing into Business has many perquisites, but lacks a definite time. Before embarking on any procedure, you should formulate a plan from your idea. Make the idea as practical as possible so as to allow manipulations and any challenges before commencing the real thing. Do a research concerning the industry of interest as well as the competitors so as to know where and how to establish your niche. Preparing all the resources needed is something vital, However, Capital comes first before everything. Seek enough capital through loans and grants before beginning a business. It is a great idea to choose a market with a large potential to grow as days go by. Finally, be keen while choosing a business partner and let your agreements be legally bound.