5 things to consider before starting a business

Starting a new business appeal to everyone. There would hardly be anyone not interested in being their boss. But the thought of putting in the effort to start a new business, figuring out how to start, what to sell, and who to sell, can be overwhelming. So much so that many people abandon the idea of starting their business and stick with their 9-5 job. 

On top of that, new business trends and ways of promoting products are introduced every day. But the fact is that the more you feel overwhelmed, the more you will shy away from actually starting your business. 

If you are interested, stop procrastinating and make an effort. 

But of course, there is no harm in having a guide that helps you through the process of starting your own business.

Below, find a list of things you must consider before starting a business.

1. Hire qualified individuals 

You might be accomplished in doing a lot of things— HR, finance, accounts. But there must be things that you are not good at. It could be product hunting or understanding the trends and analytics of the market. Therefore, you must have a team of a few individuals to help start your business. 

Understanding the market dynamics, how it works, what trends are more prevalent, and how they affect the customers is indispensable. For all these jobs, you need an expert with at least MBA in Data Analytics to be qualified for this position. Similarly, if you are not good at marketing, you must have a specialist in this area to market your product. 

You can also look for individuals who have multiple skills. Such people can multi-task, hence, become an asset for your business. 

2. Understand the “Why” of your business

You must be very clear about the “why” of starting your business. What is your goal and vision for this business as an owner, and where do you see yourself in a few years. Is this business an escape from a tiring job and a toxic boss? Or do you want to do something in your industry? 

If it is just because you detest your current job, know that you can always find a new job. The road to starting a business and working to make it successful is bumpy, with quite a few deadly turns. 

With such motivation to start a new business, you cannot safely tread on this road. 

On the contrary, if you have a vision and a purpose for your business, want to leave a legacy behind, or want to fill a gap in the market, you might be more motivated to put in the effort. These reasons will give you the fuel to survive the hard days of business. 

3. Conduct market research

In some cases, a business introduces a new product in the market. For instance, you might introduce a new coffee blend, a jewelry store, or anything unique and new to the market. In that case, you will have to conduct market research and understand people’s inclination towards such a product. 

You need to have samples of your product to show the potential customer to record their responses to your product. 

If it is a food product, you may install a makeshift kitchen in malls, grocery stores, and busy shopping complexes. Shoppers can taste your creation. Once potential customers taste or experience the product, you can record their experiences and inclination to buy your product. 

Similarly, if it is a tech product, you must have your representatives onsight encouraging the customers to try and tell about the product – whether they like it or not?

You must understand that the testing and marketing research phase is crucial for your new business. If you are successful in developing an inspiring product, you might successfully pass through one of the challenging stages of starting a business.

4. Be sure about the financials

Even if you are an entrepreneur with the next big idea, you still need finance to make your vision a reality. 

Plan extensively about the sources your money will come from. Are you applying for a loan? If so, what percentage of the total financials will it comprise. Or will you invest your savings or ask a friend to help you out in your venture? 

Calculate your net worth, the number of outstanding loans, your savings, look at your cash reserves, etc. Pay off credit card loans and improve your credit ratings as much as possible. With a better credit rating, you have more chances of getting a loan for starting a business. 

You also have to think about your family; you cannot invest everything in the business without thinking about the monthly financial needs of your family. Therefore, while calculating your business investment, open an emergency savings account with enough money to pay for the monthly expenditures for at least 6 months. 

5. Name your business and create your online presence

Naming your business is important; this is how people will know about and remember your business. 

The name should be catchy and attractive, but it should not be something that no one can recall. Some people choose an exotic name to look appealing, but often this strategy fails because people cannot remember it easily. Hence, choose the business name wisely. 

Also, don’t copy someone else’s business name or create a similar one. For instance, many businesses create business names similar to brands such as “KFC” and “The Body Wash.” They might think it is a clever strategy, but it is not. 

People don’t admire businesses that copy others’ names, ideas, or products. Customers always admire originality and creativity. 

Once you have the name, look for a related domain to create your website. If you don’t find one according to your business name, find a similar one that people can remember easily. Having a website is important because it introduces your product to potential customers.

Conclusion

Starting a new business is not easy. This is why only 4% of the businesses reach their 10-year mark. And, 50% of the new startups don’t even reach the five-year mark. Therefore, starting a business requires considerable thinking and understanding of the important aspects, some of which are mentioned above.