7 Key Things to Know Before Starting Your Own Business!

Many people dream up business ideas that they think have the potential to change the world and make them rich in the process. However, the truth is that very few people follow through on pursuing their ideas and even fewer people are able to turn their ideas into something successful. Being an entrepreneur is a high-risk, high-reward position. If successful, you can end up basking in glory with a company and bank balance to be proud of. The first step towards becoming an entrepreneur is preparing to be one. Read our article to find out more…

1) Evaluate Your ‘Great’ Business Idea: The starting point of most businesses is that one compelling idea — whether it’s a service that people need, a product that people were waiting for, or something that combines both. Remember that more than the idea itself, it is what you do with it that matters. So, the first step in the checklist is to evaluate if the idea is realistic to work upon, if it’s a sustainable one, what impact it would bring about, the cost involved, etc. before anything else. After the first thinking, ask other people their opinions and record their suggestions to get an idea of how well your idea stands a chance to sell in the market.

2) Conduct Market & Target Audience Research:The next step in moving forward with your business idea is validating your market and target audience – Who will buy your product/service apart from your family and friends? How large is your target audience? How your product/ service will be of help to them? How much would they be willing to spend on your product? What are their spending habits? Etc. Conducting an initial market research to gauge the selling potential of your product or service can help you figure out the loopholes and improve your offer to the customers. Any successful business is about creating happy customers to be able to complete the cycle of “make product and sell product” as quickly as possible. This analysis and market research will help you understand how to reach this stage more smoothly.

3) Prepare Your Business Plan:A business plan will help you gain clarity, focus and confidence. As you write down your goals, strategies and action steps, your business becomes real.Most new aspiring entrepreneurs think that they need to plan for every minute detail in advance. However, according to experts, “some people worry so much about dotting every “i” and crossing every “t” until their plan is just perfect, that they never start their business”. A one-page business plan that covers what you offer, who you’re targeting, how much you’ll charge and what you’ll do to make it happen is good enough for the beginning. It’s a fluid process that will change once you dive in, so keep it simple at the beginning.

4) Network in the Right Circle:Meeting entrepreneurs from a similar field as your business idea can help you gain contacts, know the current trends in your industry and hear about new opportunities.Also, seeking guidance from someone who is where you want to be in 5 to 10 years can be a good resource to tap into. Cultivate relationships with experts who can teach you things you’d never learn on your own and make friends with likeminded entrepreneurs.

5) Plan for Finances: As an entrepreneur and the owner of your business there are more chances that your personal financial life and business life will be interconnected, unlike that of a salaried employee. You are likely to be your first investor,therefore, having a detailed understanding of your personal finances, and the ability to track them, is an essential first step before seeking outside funding for your business. Setting up your personal accounts in a money management system available online can simplify this process.

6) Determine Impediments. You will need to plan ahead for all problems which can get in the way of running a business. Start by gaining an understanding of the government’s regulations and laws on starting a new business and tax rules for companies. Make sure there are no prohibitive costs, such as equipment which is too expensive to make the business profitable.For example, cars didn’t take off until Ford figured out how to make them cheap by building more efficient equipment. Another crucial factor that you need to be ready for is competition. Always evaluate all of your competition – if their market share or product offering is too strong and stable, then you will have a very hard time breaking into the market. No one will want to buy an equally priced or more expensive version of a perfectly good product or service which already exists.

7) Consider a Franchise: Starting something new entirely on your own can be a tricky and time consuming affair, especially if you have no experience in entrepreneurship. Many a times, figuring out and getting the legal issues sorted can itself take a very long time. This is where, if there is a franchisee opportunity in your area of interest, considering it might be a good option as you will be a selling a service or product that has already made a name for itself in the market.Also franchisers often provide training and assistance in setting up and running the business and you will also benefit from a well established brand name which already has a strong hold in the industry.