Many people shy away from facing the challenges that accompany the start of a new business, and why not? Only 25% of the newly established enterprises reach the fifteen-year mark. And most companies don’t even complete their five years.
Reasons for their failure can be variable, but some factors that must be considered before starting a business and which can decrease the chances of failure are mentioned below.
- Be sure of why you are starting a business
At the start, the most important thing to consider is to be sure of the “why” of starting a business. You must know what you want to achieve out of this endeavor.
Do you want to introduce a new and innovative product or idea in the market? Are you thinking about solving a problem that has been overlooked for years? Or do you want to target an untapped segment of the market?
Some people want to start their own business because they are bored by their 9-5 job or want more independence and control over their work. There can be many reasons for starting a new business; the most crucial aspect is to be clear about it before starting it.
- Opt for a shared office space
Having your own independent office is an expense that can affect the growth of your business. New businesses already struggle due to a lack of funding and capital. Therefore, instead of renting an entire office for yourself, look for a shared office space, which can help you save a lot on rent and other facilities.
Opting for a shared space helps you display a professional image even if you don’t lack capital and enough office equipment.
Apart from renting shared office spaces, you can rent a meeting room for your important meetings and conferences, which cannot be held in your shared office space. These meeting rooms and conference halls are affordable and equipped with the latest audio/video communication technology. And their management can provide on-hand experts for any assistance.
- Discuss your idea with someone experienced
Being clear about your vision and where you want to go with your business is crucial. But also important is discussing your idea with someone more experienced. If you know your idea has the potential to become a reality, talk it out with the right people.
This exercise will help you refine your vision and gauge the feasibility of your plan, especially if this is your first time starting a completely new venture. In fact, talking to someone about your vision can prevent you from setting foot in a troubling area.
But what if you don’t have allies or associates you can talk to? In that case, develop your networking skills and connect with the right people. Meet with people in the same industry and talk to them about your plans.
- Ensure the availability of the right knowledge
To start your business, you must have the right knowledge and expertise. If you have a business plan, it will help in the attainment of the right knowledge and skills. It may include getting a degree, learning new skills, enrolling in related training programs, etc.
Another thing to do before starting your business is to hire people with the right knowledge and skills.
For instance, if your business requires you to have accounting skills, you can either get the accounting knowledge yourself or hire an accounts specialist. The same goes for other types of expertise, such as marketing, administration, finance, etc.
- Know about the market
Once you have planned to start your own business, you must also understand the market to ensure that the people need the products or services you offer. You should be confident of your customers’ likes and dislikes and how to reach them.
If you want to introduce a product in the international market, you must know the rules and regulations of that country.
The easiest way to understand your market is to conduct a market survey. Through the market survey, you will uncover the following details:
- Potential growth of the market size
- Market share your product/service can win
- The present size of the market
- the segment of the market you are targeting
- Buying behavior of your target customers
A market survey is a great tool to know about potential customers and their proclivity to buy your product. It helps you collect valuable information which you can use later to improve your product or service to match your potential customer’s preferences.
Creating a new business is never an easy recipe for making quick money. In fact, it is challenging, risky, and full of hurdles.
Starting a new business demands effort, sleep, comfort, and family time. You will be challenged in unimaginable ways. But one thing is for sure: you will grow personally and professionally when you establish your business.
However, before starting your business, you must remember a few essential aspects mentioned above. They help you stay on top of trends and compete with your competitors more effectively.