Thinking about starting a new business? It is a huge and exciting decision -- one worth contemplating. You may be starting a business because you 1) lost your job, 2) dislike your current job, 3) need extra money, or 4) want to work for yourself. No matter what the reason, there are 7 things to consider before jumping into it.
1) Creativity: Have a Marketable Business Idea
The first thing to determine is if there is demand for your idea. The best way to determine that is to ask “Is this something people complain about? Will your product or service ease their pain?" If your answer is yes, then you should find out if there is already something out there – your competition. Competition is healthy and usually means there is a demand for your idea. Just make sure that supply does not exceed demand. If there is no competition and nothing like your idea is out there, then doing some simple market research should help you identify your target market.
2) Business Capital: How to Get It
The amount of money you need depends on the idea. Most small businesses try to use personal funding and may borrow from small business lenders. If you have an idea that requires financial backing, you should consider approaching venture capitalists and angel investors. First you will need to have a solid business plan and a strong team. In the Office of Advocacy Working Paper by Pankaj Patel and Rodney D’Souza from the University of Louisville, it was concluded that “entrepreneurs need not only to assemble an effective team, but also to clearly demonstrate the venture potential of their proposed business.” It is also crucial to have a clear exit strategy in your business plan.
3) Passion: A Successful Quality
Every successful entrepreneur is described as passionate. There are several motivators that instill passion: a hobby, an interest, a desire to be self-employed, and even a need to make money. Whatever your reason is for starting a new business, make sure you are passionate. History suggests that it is a winning quality to have.
4) Business Plan: Write One
If you don’t have a business plan, it’s imperative to write one. It is a tool to attract investors, it gives you a working document to keep you focused and it allows you to seriously consider everything you will need to ensure success (i.e., office requirements, technology requirements, marketing, etc.) Check out the SBA for help.
5) Time Commitment: Are You Willing to Work Long Hours?
Many people are not realistic with the time it takes to run a successful start up. It will be a lot of hours. Know that. Make sure your family and friends know. There are exceptions. Some start-ups only require part-time hours. They usually are slow to grow as well. Recognition and balance is the key.
6) Business Team: Share Your Vision for Success
Successful companies have passionate and creative employees. Creative recruiting, marketing and growth strategies are the innovative ideas that will inspire success. (Ben and Jerry’s; Apple; Southwest.)
7) Follow Through: Give it Time to be a Success
A new business is stressful, grueling, time-absorbing, and more. It is also exciting, motivating, confidence-strengthening and just plain fun. Give it time. If you have achieved the first 6 tips, this last step will be easy!
To start a business, you must focus on strategies for success. If you consider the recommended Tips for New Business Success, your odds of having a successful and sustainable business will definitely increase.
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