10 Things To Consider Before Starting Your Own Business
January 3rd, 2008 | by Jeniffer |1) Do you have a good business idea?
Just because you have an idea for a business doesn’t make it a good idea.
To be a good idea, the business has to have a chance at success.
You have to research your idea, to learn how to make a profitable business out of it. You must know exactly what it is you are selling, who you are selling it to, how you will operate the business, and where and how to get financing for it.
Have others done so before you? If so, study their business, their market, their product/service, how they present themselves to potential clients and customers. If you are aware of a similar operation which has failed, study them, learn from their mistakes. Was it marketing, product or service quality, operating costs, lack of finances, or some other aspect which led to their business failure? How will you insure the same thing does not happen to your business?
As well, study those which are still up and running. Get to know your competition.
What is their market? Who do they sell to?
What are their costs?
What do they charge?
Why would someone choose them, rather than other, competing businesses?
How can you improve on their model?
What about your business idea would cause a customer to choose you over the competition?
Keep all of your research together in a file folder or binder, so that it is easily accessible for you. You will need to study it carefully. This information can go a long way toward helping you plan out your business.
2) Is it something which you can reasonably expect to make a profit at?
You are considering going into business for yourself because you want to make an income. You need to be able to make a profit.
Is this possible with what you have in mind?
Consider costs of operation, including supplies, overhead, personnel, legal, financial–include any and all costs associated with running your business.
Can you generate enough income for the business to survive, to carry its expenses, for the first few years? New businesses generally do not show a profit for the first 2-5 years. Will you be able to continue operating if this is the case?
3) Is there a demand for your product or service?
Is the market already saturated with companies similar to the one you are planning to open?
Is there room for more competition?
Again, if you looked at a business model which failed in your area, was this due to too many similar businesses nesting in the same area? Can you expand the market for your own company, to prevent this from happening to you?
4) Do you have what it takes to be a good entrepreneur?
Do you handle stress well?
Do you have an adequate income aside from your own company, which you will be able to live on while the business becomes established?
Are you a basically optimistic and energetic person?
Can you withstand long hours of work with what may begin as little return or no reward?
Do you have contacts in the industry you are planning to break into?
Are you confident? Do you present yourself as being so to others?
Is your overall health good, which will help keep you going through the initial phases of entrepreneurship and business building?
Are you driven to provide the excellence in service and product which is demanded by customers?
5) Can you afford to go without an income for a period which may last several years, without adversely affecting your family?
Will it be necessary to keep your current job in the initial phases of your business?
Do you have the time and energy to do both if necessary?
Can you begin this business venture on a part time basis, and have it succeed, or is it a company which will demand all of your time?
6) How do your family and your loved ones feel about you opening a business?
Are they enthusiastic, eager to help, aware of what lies ahead for them and for you as the business builds momentum?
Will they be able to endure the long hours which will be demanded of you, and still remain together?
If you are in a relationship, does your significant other have the patience and understanding necessary to see you through this initial phase?
Can other members of your family step in to perform those tasks which you have, until now, been performing? Would they be willing to do so for a long period of time?
7) Will they be supportive?
You will need support emotionally as well as financially.
Will the members of your family be able to provide that support?
Are there certain jobs which you may be able to recruit them for during your business startup?
8 ) What skills, knowledge base, and abilities can you bring into the business?
Do you have related sales experience?
Have you been trained to do the work which you will be expecting others to do after hiring?
Have you run a business before?
Do you have contacts in the industry?
Are there savings or investments which you can utilize to provide funding if needed?
9) If you do open your business, where will you operate it from?
Will you be able to run it from home initially?
Will you require leasing a building?
Where? Are there any particular areas where you live where your particular business would do better, compared to other areas (such as in retail or food service industries).
10) Are there any laws or regulations which you need to be aware of, regarding the type of business you want to run, and the location in which you plan to run it?
Restaurants and other food service industries are regulated differently than factories, due to potential health concerns from food and related bacteria.
Some areas will not allow you to run a business from your home.
If you are able to do so, there may be issues concerning parking and traffic flow.
Get to know all the regulations and laws which will affect your company. Keep the information with your earlier research.
Do your homework, before you hang out that “Open For Business” sign.
