What to know before starting a business? Having a business idea that looks really promising is great, but starting and running a business requires so much more than just an idea, the implementation and execution of an idea is not an easy job. There are several factors to consider that will determine how well you’ll do in the business on the long run.
Running a business can honestly be harder than having a 9-5 with steady pay. As an entrepreneur, you are the CEO, marketer, sometimes customer care representative, and other times logistics person. It is demanding and time consuming, so before you quit your job and start that business, ensure you cover all necessary grounds.
To start with,
How will you get the capital? And no, I don’t mean just the capital for the business, I mean the capital to cover unforeseen expenses, capital for logistics, shipping, packaging, branding, marketing, and anything else you might need. If you can get a loan, that’s great, it’s a risk, but hey, what’s life without risks. Ensure you sit with your money manager/account officer though, and get the best advice.
Who is your target market? You need to have a particular set of people in mind who you know need your services. Is it men, women, children, middle aged, youths? This will help you in branding and marketing your business. Your approach to the marketplace is based on who your target audience is.
What gap are you filling? People have several needs, ranging from food to fashion, transport, and several others. For your business to thrive well, you need to know what problem you want to solve and how you want to solve it. Recognize what people need and how it aligns with your passion and then find the solution.
Who are your competitors? While I’ll never encourage copying competitors, I believe it’s a good way to learn a thing or two about the business. You can research about them, how they conduct their business and how you can use that knowledge to improve your business. Research, refine and move on, do not get stuck on your competitors.
It is important to have another source of income when starting your business because the truth is, the profit won’t start rolling in the way you expect and even if it does, you’ll most likely need to re-invest it into the business. Startups always require funding, there is always something new and better to do and add to make the business better. Therefore, to give your business a chance to thrive and grow, you cannot afford to rely solely on the profits generated from the business to make a living at the beginning.
PS- it’s okay to start small, even if you have enough capital at your disposal, take time and test the waters, do not bite off more than you can chew, consolidate and then expand.