One of the most fulfilling, exciting, and challenging things a person can accomplish in this world is start a business.
You have a chance to improve things, make money, achieve your goals, and continue learning and developing. Incredibly difficult challenges, physical and emotional weariness, and the genuine possibility of failure must also be anticipated.
Sometimes entrepreneurs launch businesses out of unbridled enthusiasm and the conviction that they must act. They are propelled by a passion, obsession, and creative energy. It simply needs to come out, just like poetry, painting, or any other kind of art.
That’s how I was when I launched two of my businesses, but looking back, I see that although enthusiasm and intensity are essential, planning and careful consideration are also quite vital.
Startups demand a MASSIVE COMMITMENT and are COMPLEX. Before starting a company, there are MANY things to consider.
Before you go in, take into account the following:
1. What is your vision for this startup?
What will the world look like in 5–10 years if you succeed? This is such a crucial subject and yet some entrepreneurs don’t bother to think about it.
Consider if what you are considering will actually be required in the future. Is your suggestion futuristic?
If the concept is outdated, the market will be contracting, making it difficult to expand and draw in investors.
Have a distinct vision; this is essential. It will assist you in choosing your direction, in attracting funding and talent, and in overcoming several difficulties and roadblocks along the route.
You are racing into the future blind if your eyesight is weak. You may map your way backwards and have far more influence over your fate if you had a strong, clear vision.
2. Who is my direct competitor?
You must keep tabs on these other companies and their activity in addition to understanding your competition so that you may comprehend the industry.
Consider this instance: Bing continually needs to innovate and utilize new marketing strategies to draw users to its search engine since Google holds about 80% of the worldwide search engine market share.
It’s crucial to be aware of your indirect competitors in addition to your main or direct rivals. These rivals may not provide the same good or service as you, but they might still take some of your market share.
A neighborhood eatery and a movie theater are two examples. Even if each company views the other as a direct rival, the decisions each takes affects the other.
Customers could forgo the restaurant and eat at the movies, for example, if the theater decides to begin selling food inside the cinema. The movie theater could lose revenue if the restaurant chooses to have live entertainment on a Friday night.
You may position your business for success by doing a competitive analysis involving both direct and indirect rivals.
3. Who is my targeted audience?
Your company has to be customized for a certain target market. This will be useful when you are manufacturing items for the niche market and promoting your company to that market.
You must keep in mind that your corporation cannot be for everyone; instead, you must choose a market niche and concentrate your efforts there in order to reap future financial benefits.
4. How to set pricing and way to market it?
You don’t want to underprice your goods, but you also don’t want to overprice them. This is where your research will come in helpful since you need to see what your rivals are charging for similar items.
Are your products the same, more opulent, or simpler? You should also think about how much it will cost to maintain your firm overall and the costs associated with packaging and shipping. Where do you fit in the market for the people you are trying to reach?
You must market to your target market. Your company website and pages on social media are more likely to be viewed by the targeted target audience if you have the greatest marketing approach, which will boost traffic and revenue!
5. What is your financial position?
Are you in a position financially to launch the business? This is a really important thing to think about. Can you afford to forgo receiving a wage while starting your business?
Do you have any financial responsibilities, such as rent or loan repayments? How do you plan to handle them?
Depending on your response, you must choose if you can start up full-time or whether you must hold down a full- or part-time job in addition to working on your company during the evenings and weekends.
Do you have access to money if you can’t afford to quit your day job? Will your loved ones and friends wish to support you? Will VCs or angel investors be able to help you raise money?
6. How do I earn a hard profit?
The funding option may affect the answer to the question of when you will make a profit. Some investors won’t demand payment from you for a while, which allows you the freedom to expand your company.
But this expectation also entails obligatory interest payments. On the other hand, if you’re self-funded, you’ll want to make a profit right away so you can cover your expenses and stay out of debt. Knowing your profit objectives will help you create an efficient budget and increase your profit.
There are so many issues and topics to think about!
You are starting one of the most significant decisions and journeys of your life as a prospective founder. Spend some time planning and considering your options!
When you are prepared, if you have completed all the necessary documentation, kindly get in touch with me; I would be delighted to discuss an investment possibility.
Good luck on your entrepreneurial adventure!