Starting a business comes with a lot of risks. There are so many things to consider and there is no certainty of success. Asides from the various talk-downs by people you are acquainted with about the arid lands you are about to venture into and the metaphoric coyotes that you are sure to meet along the way and how totally unprepared you are, there are real life challenges and strategies that must be put in place to mitigate fails.
Now you have this great idea and concept that would lead into a million buck business but there are very crucial questions you must ask yourself before bungee jumping.
- How much do you know about your business – this goes to say that you must know all operational tactics and the necessary skills needed to operate this sorts of business or be able to find valuable hands to populate the various departments necessary.
- How much does it take to set-up – one thing you don’t want to do is underestimate the cost of starting a business. This easily leads to a meltdown due to unforeseen expenses.
- Who are your competitors – it pays to know other companies around you who are offering the same services as you. This would enable you the opportunity to compete effectively, using strategies that puts your business at an advantage over your competitors.
- Who are your Stake holders – these sets of people are usually referred to as determinants. They play a key role in the functioning of businesses. They can be people who supply you materials and tools needed for daily operation, people who offer some sort of security, or even other companies whose presence bring large traffic to the area where your business is situated. They may have no direct connection with your business but their presence ensure than your business gets the needed traffic as well.
Now you have covered all these information and you are ready to begin. Here are the steps to take;
Conduct Market Research
So you have this great idea to offer goods and services in a distinct area and this is a skill or product you feel really good about, you would have to conduct a comprehensive market research. This is necessary in order to determine who your target audiences are and what the statistics of these set of people are in your location of choice. A market research seeks to know a couple of details like; who needs your services? What are the demographics? How necessary is this service to them? Is the demand high enough to make real sales? A new business needs these details before set-up to avoid mistakes.
Sources Of Capital
You would most likely need investors at a startup stage. Sources of capital can be in form of personal savings, donations, financial assistance, loans from institutions, and grants. A startup usually needs adequate funding for tools and bills so if you don’t figure out your source of capital and acquire these funds before the business starts it might pose some serious challenges in the future.
New businesses come with some necessary documentation of policies, rules, disclaimers and a lot of other law related issues. This is usually to certify that you have legal permission to run this business and also to assert company policies. In most cases people hire a lawyer to handle this aspect. A lawyer would not only aid in the certification of your business but would also advice you on policies, lease and contracts to make sure you and your business is fully secure from litigation.
You have to get this right the first time as this will stick with you for a long period of time and in most cases become what people know you for. Tips for choosing business names are;
- They have to be easy to memorize
- They have to be easy to pronounce
- They have to be peculiar as they would eventually become domain names for your website
- They should not be generic as many other sites online would usurp your potential clients
Licensing and business permits
The sort of business you run depends on the licenses you would require. A person running a form of livestock business requires a whole lot of licenses than someone running a local footwear business. Manufacturing, health, and all forms of really intricate businesses need to get adequate licenses in order to meet government policies. Skipping laws of licensing can lead to lots of consequences such as fines or closing down of businesses.
Marketing your business
You can adopt strategies such as social media and launching a website. This would enable you to effectively market your product or services to a wider number of people from all parts of the world.