When you have a business idea, you want to convert it into reality before anyone steals it. Starting a business sounds exciting as you can be your own boss and take complete control over operations. However, the path of entrepreneurship is laden with thorns. It really takes passion, hard work and determination to move ahead taking the challenges in your stride and never giving up!
According to a Forbes article, 8 out of 10 businesses fail within the first 18 months. So, enter the world of entrepreneurship only if you have guts to face the tough situations. Now, if you are ready to do so, congratulations! This article will tell you about how to get started.
The commencement of a business depends on a number of variables. Right from the type of business to its location, there can be several factors that you need to consider. If you get these factors right in the inception stage, your job is half done. Basically, you need to get your basic right.
Checklist of what do you need to start your own business
Conduct Self-evaluation
Every entrepreneur needs an insight into self first. Some basic questions like why you want to start a business (money, freedom of work etc.) and what are your skills should be answered. There might be a particular product or service you are interested in. Think about your past experiences and what kind of industry you know well. Take stock of your financial status and the capital investment you are planning for your business. This planning will prepare you for the overhaul where you have to stay long term. Once you narrow your attention, you can think about undergoing an entrepreneurship management course that will make you a stronger business manager.
Do Industry Analysis
The more you know your industry, the better it is. This doesn’t mean you can’t start without complete knowledge. But, initially, you must do your bit of homework as to who would be your potential buyers and who are your competitors. Take help of online searches and try to reach people who have already been working on it from before. Grab hold of the latest industrial magazines or subscribe to relevant news channels that will keep you updated. For more detailed research, you can contact advertising people who can provide with the exact data about your industry and competitors too. If you want to do it more seriously, hire a student team who will do the required research for you.
Understand Potential Audience
You need a thorough market analysis before starting the real business. It is better to know how good the market is before rather than regretting later. Spend some time in a finding how fast your product or service is likely to be used. Similarly, you should know more about the prospective market size. Certain other doubts could be how conveniently customers can be attracted towards your business or is it comparatively tough. You should know how much time would the business start rolling profitably. Think about the future as to how relevant your business will be in the coming years.
Know Your Competitors
It is good to be confident but bad to be over-confident. Don’t assume you will always do better than your competitor. Aim to be better but don’t under-estimate. Rather, gather more and more information about your competitor is gathering business in the market. It would not hurt to know how they get to their customers and how they satisfy them. If you feel threatened by the presence of competition, think positive. Competition is here to stay; it is there in all businesses. The good news is that competition means you already have a flourishing market where it would be easy to find customers who are already using similar products or services like yours.
Chart Out Your Business Plan
Unless you are already rolling in money, you need funds to run your business. And, in order to find investors, you need a strong business plan. An entrepreneurship management course will teach you how to make a strong business plan to woo the investors.
Incorporation and Legal Formalities
Once your business is ready to launch, you have to incorporate and register it legally. You would need to give your company a name and logo. You will need to get a business license, property tax clearances and various other approvals required to set up a business. You will even need to open a bank account. There are umpteen formalities that are required to make the business legal in the eyes of the law. So, in accordance to your area and business, learn more about registration formalities. If needed, you can contact a practising attorney who can help you with the legal formalities.
Though it is not rocket science, you need to fulfil this checklist before you start the show. The more meticulous the planning higher is the profit. So, when are you putting up the shop?