5 Things To Consider Before Starting A Business
If you want to secure consistency in your business with good growth then it’s just isn’t the matter that once you start it and automatically you will reach the mark, it starts with the circumstances you consider before starting a business. For that consistency you must have to deal with some primary stages before you make a kick ass start of your business and you must be groomed accordingly.
Bureau of Labor Statistics says that, 50% of all small businesses fail within first five years while about 30% survive only two years. The lack of knowledge about the things that you should consider before you start your business may lead you to this statistic, but don’t worry, you can be saved by following these 5 things before starting your business.
Where do you stand?
Before you consider a brand new beginning of your business, you must have done some self examination in concern of your strength, analytical and technical skills, time management and working plan which are top most necessities of any business. So, ask yourself few questions before you go along with starting a business such as, where do you exactly stands right now? Are you indeed ready to take off? Because starting a business takes endless hours of smart and hard work, brain and self confidence. And probably It’s a great challenge where you ostensibly find yourself working for more than 60 hours a week and it may cause you to give up on your personal life.
Choose a type of business
You should be specific about your business type before you move ahead in this process and for that you must possess a perfect understanding about various business types. Following are few types of business which can provide you an idea to choose yours.
- Own Business
- Franchise Business
- Home-Based Business
- Online Business
No matter what type you choose for your business, each one has their own benefits. But you should have required knowledge about your chosen type then only it will be beneficial to you. Also remember to understand that either your activity is a business or hobby because both stands for different meaning here, as well benefits and loss. If you consider hobby then may be you can easily overcome with losses and benefits may seems like a bonus for you but in business benefits and losses both affects a lot on your brand and company. Get consultation from a professional business advisor if required and if you are confused to choose your business type. Because, insurance and establishment cost, compliance requirements and nature of your business are common factors that may influence your choice of business type.
Do you have the required skills
Starting a business of which you already have the required skill is always awesome. It fills up the gaps in your knowledge base and you can run it properly after you start. Having the required skills before you start your business can be fruitful with long term benefits. It reduces the dependency and if required you can have that training programs with you to train your employees accordingly. So by having the knowledge of required skill set can be very beneficial to you before you start your business. Below mentioned skill may help you to clear your vision:
- Market Research Skills
- Money Management Skills
- Marketing and Sales Skills
- Negotiating Skills
Knowing the key metrics for your business and a rudimentary understanding of financial statements can help you to start and run your business better.
Create a working business plan
A goal without a plan is just a wish. So, make sure that if you are clear with your business type, idea and possess almost all those required skills to start your business with high swing, then you must create a business plan to achieve your goals with direction. Business plan is the best part of any budding business, because it gives you a crystal clear vision to follow your dream to reach out a fixed goal with huge benefits. Few things you must consider while planning your business:
- Executive Summary
- Marketing Plan
- Financial Plan
- Management Plan
- Operation Plan
These are necessary things to look for and consider while you are projecting a plan to start a business successfully. But, by making to leave is not good act to follow, everyday you have to review it and keep it up to date by analyzing that every action in plan is taking place in curriculum and working out properly.
Also Read: 5 Major Reasons Why Your Startup Might Stall
Plan for growth
Idea of starting a business sounds exciting journey but there is a difference between reality and fantasy. If you are prepared with backup plans and prior planning to face any conflict then it may lead you to a safer journey rather than to face a disaster. Along with a passion to start a newbie you must be prepared for its growth too. Change happens everyday, it’s dynamic phase for every process so does for your business, hence make sure that you’ve planned for your successful growth of business in pretty well manner. Before you bombard a new experiment, know which path you will take and be prepared accordingly for success.
To make something happen you need to start from somewhere, and to start from somewhere, you must have to be confident about your idea, steps, plans and growth of respective happening. Same goes to your business, if you are not well prepared for what you are starting with, then eventually it will take a slight instance to turn it into a catastrophe. So, do not think twice to apply above suggestions before you start your business.