If you’re not sure where to start you may want to consider where your personal skills and interests lie.
You will also need to take account of the amount of money that you are prepared to invest and whether you will run your business full time or part-time.
When you come up with the idea for a product or service, it is time to test the idea in the market.
It Starts with a Business Plan
Before you start a business, you need a business plan. You need to evaluate the industry that you plan to go into. You must understand the industry players and the state of the market. There are a number of questions you must get answers to
- Who will you compete against?
- What is the market size?
- Do you have a valid value proposition that will stand the test of time?
- How much will you need to invest?
- How long will it take to start making a profit?
A business plan will help you to ensure that your business meets its goals. It will help you to map the course for your enterprise, giving you direction on the right moves to make at the right times.
Once you have decided that you have a viable business proposition it is time to look at the type of business you plan to register. You may also require licenses or permits before you start. At this stage, it is best to see an attorney to iron out the legalities. Your attorney can help you to understand the advantages and disadvantages of the various business entities and give you advice on setting up.
You’ll Need a Financial Plan
If you plan to use outside financing your lender of choice will require a business plan including a forecast income statement, balance sheet and cash flow statement. Don’t forget to factor in the payment cycle when doing the cashflow plan. Many businesses founder in the first year due to cash flow problems. Even if you are self-financing, a financial plan is a good idea since it will allow you to plan your cash flow and avoid any nasty surprises in the future.
If you are setting up business premises the location of those premises is very important. Choosing the wrong location could sink your business as it will determine what customers you will attract. The business premises must complement your product and brand. Considerations when selecting the correct property include
- The cost – If you can’t afford the premises, you’ll have to keep looking
- Parking availability or access to public transport
- Visibility
Marketing Your Product
Whether you’re an online business or brick and mortar store, marketing your product is crucial to your success. These days business owners cannot overlook the Internet as one of the most valuable marketing tools. You’ll need a simple, easy to navigate website. In addition, social media advertising will give you the reach and access to customers that can help you to rapidly grow your business.
