December 15, 2017

Keys To Starting A New Business

In today’s economy, more people than ever are interested in starting their own businesses. It may be a desire to finally take their concept to the next level, or out of necessity due to loss of employment or other income, and the need to protect themselves and/or to achieve financial independence through such opportunities. The purpose of this article is to summarize various elements for entrepreneurial-minded people to consider.

 

One of the most important elements in creating a business is that it is a feasible business idea with a real prospect of success. You must undertake extensive research to ensure that your idea really makes sense. Do extensive demographics research (there are many free Internet demographic resources available, such aszsjreedemographics.com), to ensure adequate numbers in terms of your target market and area. The question to consider should therefore be along the lines of, “What is your target market, i.e., who will buy the product/service?” If your research reveals numbers that you believe are adequate to warrant moving forward, you should then assess and answer each of the following questions:

  • Will your business sell a product or service?
  • If your business involves products, decide if it will be wholesale/retail, hands-on or web-based?
  • If your business involves services, will third parties be involved?
  • Should any licensing or similar issues be considered?
  • What is your competition in the marketplace?
  • What are the profit prospects; how do you go about preparing a budget; will you need to hire financial professionals to assist you in this process?
  • What will the initial start-up costs be?
  • Will you need to seek outside capital?
  • How long will it likely be before your business begins to turn a profit? What will you do during the interim?
  • What type of corporate entity is appropriate?
  • Will you need to seek the advice of legal counsel?
  • Will you need to hire employees to get things off the ground?
  • Will your business be regional, national or international?
  • What laws/regulations will be applicable? Again, you may need legal counsel.

By assessing and answering these questions, you have undertaken a type of “feasibility study”. If the “study” results indicate that the business seems “sound”, and you decide to move forward, you will need to tackle various tasks, preferably with the assistance of appropriate professionals.

A crucial step in terms of “getting the party started” is to develop a comprehensive Business Plan, including budgets and forecasts.

The Business Plan will be a key element to your ultimate success.