Most people either think building a startup is as easy as taking candy from a baby, or it is rocket science. The truth is, it is only as hard as you perceive it to be. Starting a business requires adequate preparation, and a little bit of luck to come into fruition.
Like any business enthusiast, you should understand that there are a lot of things you should consider before starting a business. That is why in this article, I would explain all that in more clear detail.
Before You Start Your Business
There are six things main things you need to consider before you go ahead with that business plan and business idea. They are:
- Understand what problem you are trying to solve: This is a very important step that most people either ignore or even forget altogether. For you to increase your chances of success, you first have to look inwards and think to yourself “what is my idea going to solve?” By doing this, you place yourself in the shoes of the consumer to see if they would want to patronize you.
- Do your research: The market is a very volatile and flexible place. To see your business thrive, you have to do a sufficient amount of research. This research would consist of you understanding and analyzing the information that the market has to offer. Ultimately, it would let you see if your business model will thrive at that particular time.
Most times, you don’t even have to be the first to come up with an idea to make progress. There are many businesses that have taken the idea for pre-existing business, redesigned it, and have seen massive patronage from consumers. They have done this by analyzing the market, and developing effective online marketing and sales strategies. In the end, it’s a matter of how well, not how long.
- Be patient: One of the downfalls of many entrepreneurs is their lack of business. Most parts of the business world revolve around patience, and starting a business is no exception. As a young business, you should remember that you should refrain from taking unnecessary funds from investors and loans. More money does not equate to making a faster breakthrough.
If you can, try and fund your business idea yourself, and only accept funds when you have a reason to such as actually seeing potential growth in a certain area.
- Surround yourself with like-minded people: The sad truth is, without effective mentoring and guidance, your business is 50% likely to fail according to statistics. That is why you should strongly consider getting a mentor, or someone with more experience than you in running a business. We all need help to thrive, and we need to gain from other people’s skills and experiences because no one is an island.
- Know your target audience: Having a good grasp of who your target audience is and where your audience is located is a very smart way to go. You don’t expect a beef jerky company to market to a vegan community; it is going to end horribly. Thus, I want you to understand who exactly needs your services, and market aggressively to them.
- Document your figures: Have you ever wondered how Apple’s finances would be without a team of financial analysts tracking their finances? In one word, it would be catastrophic. As a startup, you should understand that you need to efficiently document your figures. These figures would allow you to know how your startup is faring, as well as future profit projections. You can then make sensible decisions based on the accurate information you have.
What We Think
Starting a business is no easy task. You have to manage expenditure, understand the risk you are taking. you also have to make decisions that would make or break your business model. The points listed above are meant to make you understand the different factors that influence a successful startup, and make sure you equally think in the direction of success.
I understand that this can initially cause a lot of anxiety, and fear. It is totally understandable. The good thing is, once you get over your fear and understand the points above, you would have a huge edge over countless others.