Perhaps there is that tagging in your life, the tag to build something, something new. Wealth and finances are a talk that we cannot avoid. They are the forces that call the shots. Whether moving from employment to self-employment or simply venturing directly into it, of importance is that bold step towards business ownership.
Here are aspects to consider that will bring into proper perspective the weight of what you are about to undertake. Things to consider before starting Your Own Business.
Capital
This entails calls a spade a spade and not a big spoon. It means getting real. It means looking at the facts and figures. When venturing into business the first question is normally what is the budget? What is the cost that will go into building your dream business?
Establish the initial capital you will need. If this is not your strong area, be sure to involve the services of an Accountant or someone in economics. Initial capital includes your initial stock, rent where applicable (this could include several months in advance), salaries among others.
With this said, there are various sources of startup capital. It can be from own funds for example acquired savings, Business loans, Venture capital and Crowdfunding. Everyone of the sources comes with its own pros and cons, it is therefore paramount to do proper research before making a choice.
Passion
Truth be told businesses are work. They will require your attention and your input. Especially for the start, we can associate new businesses to new born babies. They will need constant attention and time. But, the beauty of babies is to see them grow, see the metamorphosis.
With the risk of burnout in practically every area, it begs the necessity to do something that you are passionate about. This is because rain will come and it will pour. For you to be able to withstand all these, it calls for something deeper.
Business anchored on the roots of passion. This is business that can be able to weather the storms that will come. Investing in something you are passionate and care about also gives you the motivation and the push. Your ‘Why’ is the strong muscle that you need in the world of business.
Niche
You are not just starting a business for fun, or maybe you are, hehe. You are starting a business to create impact, to make profits and to thrive. Such a business needs to be addressing a certain pain point in the lives of consumers. Due diligence involves not beginning a business because of emotion but because of confirmed niches and facts.
It may sound good in your head but is it what consumers are looking for? Does it meet any particular need for consumers that they would be willing to spend on?
Identifying and filling a niche is a huge factor that will contribute to the success of your business. Make sure you have identified and are filling in a true niche. A proper niche draws the consumers in. Prioritize market research on the niche, get actual data and feedback.
Target market
Consumers are the heart of the business. They have to be brought to the right perspective for the success of the business. One of the mistakes in a business is targeting everyone, because targeting everyone is the same as targeting no one.
Target market ensures that you are making decisions with a specific target audience in mind. This way you can make better decisions regarding what will work or on, the marketing techniques that will work for your target market. The sort of branding that you will need to do to appeal to your target market.
When the target market is clear, the ‘How’ question will be taken of where because then you will be projecting to the right market. Once your target market is set right, chances of success in the venture increase.
Competition
Competition is a factor that we would like to ignore and turn a blind eye upon. On the contrary however is the fact that the business you are venturing in may already have players in it. You who will be a newbie in the industry need to know who the competition is in the target market.
Finding out the competition is one thing, you need to know how they are doing their business, how are they doing their marketing, what is seems to be working for them and what seems not. What will your business be doing different or additionally to make it stand out among the already existing ones? How will you get people to look in the direction of your business in the midst of the fierce competition going on?
When these factors are taken care of, success will be inevitable!
Dream Big, Start Small, But most of all Start- Simon Sinek
