Business startup – Things to Consider Before Starting a New Business.
To start a business is not easy, business startup requires courage, planning and careful implementation. There has been a contradiction on how best to start, some people say you need the idea and skills to provide a service or product, then you can look for your customers. Others say you have to identify your customers, know their needs before you start the business to satisfy them. This is just like the tale of the chicken and the egg and which existed first.
For me the important thing is for you to know that a lot of people who started their business failed in the first three months, others within six months and that the chances of you failing in your own business in this recession period is very high. Unless you are ready to do what it takes for you not to fail? To ensure you don’t fail, I have put some strategies you have to consider and implement.
What Type of Company Do you Want to Start.
The first step is that you have to choose what type of company you want to start. Is it a sole proprietor or a partnership? If it’s a partnership, do you want to get friends and relatives to invest and become part owners of the business or you want to sell your shares through the stock market. Whichever one you choose determines the level of risk you face, tax you pay and profit margin you make.
Knowing your Customers.
This is one of the most important aspects of your business. You must identify the people who need your services or products and plan how you will reach them and satisfy them. You have to do a market research to understand them and also do a need analyses to unravel their needs and how they want to be served. You can stay in business without making profit for some time but you can stay in business without patronage. You have to be guided by the old maxim that the Customer is King. Remember if you treat your customer well, you will not only be assured of repeat patronage but also of referrals.
Monitoring your Competitors.
Keeping a tab on your competitors is also important, firstly to know what they are doing right and to try and do it better, secondly to know what they are not doing right and try and outsmart them. Competition is all about fighting for market shares, so if you position your brand well, you can gradually take over their shares and dominate the market.
How you pay yourself and your employees matters. No doubt, if you pay pee nut, you will have monkeys for workers. However, you don’t have to be extravagant and spend all your money on wages without putting some back into the business for growth and expansion. Prudence and discipline is very important in running a business. You have to define an amount that you will earn monthly just like your employees. If you keep spending money anyhow from the business, you will ruin it.
Marketing and Publicity.
This is the nucleus of your business. If you do not have publicity and marketing skills, get a professional that will help you. Even if you running a personal business, it does not mean that you cannot outsource some services to professionals.
You have to recruit efficient staff to work for you. You may not have enough funds to hire professionals but you can hire people with passion and commitment. They will learn on the job and grow with you. Treat your employees with respect and professionally. That they are working for you does not mean that they do not have value. Your competitor can poach them and mar your business.
Stay on the right side of the law by obeying the rules and regulations of doing business in your locality. You also need to be careful while choosing location for your business whether it be looking for a land for sale or a vacant property for sale. Do not cut corners, it can boomerang with serious consequences when you least expect. Your competition can also use it against you. The consequences could be enormous, it could lead to closing your business, spending money paying Lawyers during litigation, wasting of your precious time and you may even end up in jail.
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About The Author.
Rachel Stinson has always had a knack for writing, analytics, food, fashion, and places. Blogging has combined all four for her with an added bonus of enthusiastic audiences. She expertly analyzes real estates, restaurants and dignam with respect to pricing and people involved and can express her opinions in an unhesitant, engaging manner for all matters.