Starting a business can be a motivating idea especially for first-time entrepreneurs or employed individuals who are tired of the 8-5 job. It’s encouraging to start a business when you think about the freedom of not working 8-9 hours a day, not having to report to anyone and the possibility of endless profit.
However, according to Venture Beat, only 4% of the newly started businesses manage to reach the 10-year mark.
In fact, over 50% of the small businesses don’t even make it to the fifth year. One of the main reasons why this happens is because people have no idea about the various things to consider when starting a new business.
They have no idea about the money that is required, the hard work that they have to put in, the knowledge and the experience that they have to gain, and the kind of patience they need to have until their business reaches up to a certain level for them to break even or make profits.
The following factors, when considered well before starting a business will help you to eliminate the risks and obstacles you might face on your entrepreneurial journey and prepare you for success.
1.Business Plan
A business has a limited chance of developing fully with the absence of a business plan. Writing a business plan can help you determine if your idea is feasible and provide direction. With a business plan, you will be able to know every next step that should be taken
2. Target Customer
Having a service or product to sell is not going to make your venture profitable if you do not have customers who will buy it. If you plan to start a business and you know what to sell, before you begin, study if there is a market for it. Identify who your customers are.
3. Passion
Make sure your idea is something that drives you. Passion is the thing that keeps entrepreneurs going through hard times. If you really believe in what you’re doing, and the project you’re developing, it will make you more resilient and determined when faced with obstacles. With passion, you’ll also be more effective in communicating both the potential of your project and your own potential as an entrepreneur.
4. Funding and budget
The next important factor that should be considered involves the funding of your business. No business in this world can run without money. Depending on the type of business you are starting and the initial costs that you will have to pay up for, you will know what kind of capital you would need to start your business. Get to properly identify the sources through which you will be able to get the funding. Moreover, it is better to have a plan so that the budget of a company can be properly maintained.
5. Competitors
Gaining a market share should be on top of your mind if you are about to start a business. You need to know what your competitors are doing and what are their strategies? With this knowledge, you will be able to make appropriate decisions about your company. It will also help you in developing a much more effective strategy for your business.
6. Attitude
Having a positive attitude is one of the most important things that will help you in passing all the challenges and difficulties. There will be a lot of risks and hurdles you will face in this process and the only thing that can save you will be your positive attitude. You will have to work hard to develop a company of your own.
7. Staff
Your staff members are the ones that can make or break your business. Without efficient manpower, no business can ever succeed. That said an efficient strategy for outsourcing staff needs to be thought of and be in place.
Apart from hiring the right staff, there is also the training that you need to think of. This will ensure your staff members will be in a better position to handle their responsibilities and meet the expectations you have set for them.
Finally, you will also need to think about paying their salaries to keep them motivated enough at work.
