Things To Consider Before Starting A Business
Starting a business is every person’s dream. If an idea is great enough it can be highly encouraging for a young entrepreneur to focus on. Most people who are sick of their 9-5 jobs yearn to start their businesses. Starting a business is a very great idea in theory. However, there are many things that one must look at before embarking on this journey.
Businesses can be stressful, especially when you’re looking at start-ups. Start-ups require hard work, dedication, ample amount of prior research and experience and most of all patience. As such, starting a business is not something to be taken lightly. This is why we have come up with a few points to consider before starting a business.
5 things to consider before starting a business
1. Business Idea
The most important thing to consider before starting a business is – what exactly you want your business to be about. You must come up with a concrete idea before embarking on the journey of a start-up. It’s imperative that the business idea that one has is unique and caters to some strata of the population. You must ask yourself, ‘what makes my business unique from all the others I see around me?’ Once the ideation and identification of the start-up are done, only then can you move on ahead with the company.
2. Customer is King
For any business to be successful, it requires a lot of customers to keep coming back for the product or service you are selling. To make a business successful, an entrepreneur must identify his customer base. After the identification of the customer base, ample amount of research must be done for the same. Identify what will bring your customer base back for more and work from there.
3. Starting Small
The best way to understand if the product or service you are looking to sell will appeal to the customer is by starting small. You must test out your product on a smaller population size before going all out looking for angel investors. Starting on a smaller scale also allows you to understand how to run a business as well as the work that need to go into it.
Starting a business requires money and understanding how to manage money is very important. For any start-up, it’s imperative to cut or reduce costs as much as they can. Hiring a Start-up-Business-Advisor can be of great value to the company as they know just how to manage the money side of it. You must think about the total costs that will be incurred to set up the business as well as the cost to run it. Adding to that, any additional costs that you will incur in terms of manufacturing or renovating etc. Once the total cost incurred is figured out, then your Start-up-Business-Advisor can help the business by looking for angel investors.
5. Business plan
Creating a well-rounded business plan is imperative for a start-up. Everything must be planned from the finances - angel investors, to the hiring of other staff. The overall vision of the company should be included in the plan as well as how you plan on achieving it.
I have developed a one-page business plan for all start-up founders and entrepreneurs. This business plan helps you ideate what you would like to achieve the following year as well as the activities you are willing to give up. The business plan allows you to understand the shortcomings of the previous year as well.
To Sum Up
After considering all these points, you will finally be well equipped to start your own business. It is a hard job, but the rewards well outweigh the work and time you will spend on your business.
About Devansh Lakhani
Director of Lakhani Financial Services, and a Chartered Accountant, he helps start-ups raise funds from his network of investors. He guides and advises start-ups to scale up by providing efficient sales, marketing, team building, and business management strategies. He has executed fundraising by block deals on the stock exchange and conducted IPOs and right issues on the SME platform to the tune of over Rs. 50 Crore. He is currently working with start-ups from various sectors to help them channelize their business models and investments.