To start a business requires knowing, understanding and facing many challenges ranging from finance, marketing, sales, property protection, human resources, and more. Notwithstanding, despite all this challenges there are still fantastic and spectacular success stories of some startup enterpreneur who have grown their business to become a multi-billionaire today.
Actually, knowing the right business to start might seems to be a difficult task especially when you are faced with numerous business ideas and opportunities, but if you consider certain key factors before making your choice, then you would be successful in choosing the proficient and profitable business for yourself.
If you don’t want to make mistake when it comes to starting a business, then you need to carefully access the business opportunities around you and then match it with your skills or in some cases the finance available to you. One good thing about starting the right business is that you will struggle less to achieve results and meet your goals and targets.
1. List the Business Opportunities around You.
If you’re thinking about starting a business, you likely already have an idea of what you want to sell, or at least the market you want to enter. Take your pen out and list all the business opportunities within your reach. Once you are able to list all the business opportunities around you, it will be easier for you to critically examine them one after the other and then prune it to a minimum number that will make it easier for you to make a choice.
2. Do a Self Skill Audit.
One of the steps that you are expected to take if you want to know the right business to start is to conduct a self skill audit. Regardless of which option you choose, it’s vital to understand some reasonable ideas behind such business. this would make it lot easier to start a business around your skill sets because people perform pretty great when they perform tasks that are in the area of their skill strength. A good skill audit will not only help you discover your skill set, but also help you rate your skills.
3. Conduct Feasibility Studies.
In as much as you’re able to list the business opportunities or ideas within your area of marketing, the next step that you should take is to conduct feasibility studies to know what it truly takes to start the business. The truth is that, when you conduct feasibility studies you will be able to discover details about the business you intend starting. The information you will get from your feasibility studies will guide you in choosing the right business.
4. Write a business plan.
Once you have your idea in place, you need to ask yourself a few important questions: What is the purpose of your business? Who are you selling to? What are your end goals? How will you finance your startup costs? These questions can be answered in a well-written business plan.
A lot of mistakes are made by new businesses rushing into things without knowing these aspects of the business. You need to find your target customer and as well know who is going to buy your product or service? If you can’t find evidence that there’s a demand for your idea, then what would be the point?
5. Watch your expenses.
Avoid overspending when starting a business as you need to understand the types of purchases that make sense for your business. Don’t overspend on equipment or gadgets that won’t help you reach your business goals. A lot of startups tend to spend money on unnecessary things, “i.e. your business plan is for a startup business that requires at-least 5 workers, but went about spending a huge amount on office space that would fit 25 people.”
Spend as little as possible when you start and only on the things that are essential for the business to grow and be a success. If you need financial assistance, you can as well go for a small business loan or alternatively through money lender or by saving.
6. Ask Questions.
Its good to ask questions when you have the opportunities to before making your final decisions on the business to start, it is advisable to understudy someone who is already into the type of business that you intend to start. It will give you a clearer perspective on the business and also you will be able to know the financial commitment required in starting and running such business.
As such, ensure that you ask tons of questions about the business from entrepreneurs who are already in the line. You can as well ask people around to know the type of business that they will be willing to patronize.
7. Choose your vendors.
Setting up a business can be a tedious task at times, especially when come to a reliable supplier and as such you’ll have to choose carefully. So it’s critical to find someone you can trust as any vendor you’ll be dealing with will have access to vital and potentially sensitive business data of your company. In my own experience, it is advisable you ask potential vendors about their experience in your industry, and find out their track record, co-existing relationship with their previous clients and how have they add positively to the growth of such clients business.
8. Take a Personality Test
Setting up a business should not be based on the profits you tends to gain or your interest in the business, but to know if you are compatible with the business. For example, if you know that you are extremely quiet and you are a calm , then starting a sales and marking business might not be the right business for you.
It is important to take a personality test to discover your temperament before making your choice on the business to start. You can search online or free personality test or for paid personality test.
People should not just start a business simply because it is trending and it is also profitable. Loads of people join the bandwagon when it comes to starting a business and they ended up regretting such moves because they ended up getting their fingers burnt.
9. Brand yourself and advertise.
Before launching your business, you need to build up your brand and create awareness so has to get customers ready standby for the arrival of the business. You can achieve this starting by creating a logo that can help people easily identify your brand, and be consistent in using it across all of your platforms, including your all-important company website. Also, use social media to spread the word about your new business, perhaps as a form of advertisement and offer discounts to followers once you launch.
Be sure to also keep these digital assets up to date with relevant, interesting content about your business and industry by creating a marketing strategy that goes beyond and continually getting the word out about your business. This process, especially in the beginning, it is just as important as providing a quality product or service.
10. Communicate with your Customers Frequently.
Once your business is setup, always communicate with your potential customers frequently to know how to serve them better. This can be either E-mail communication, questionnaire, survey or direct contact. E-mail communication and are often used in e-commerce to request permission to send newsletters, marketing material, product sales, etc. to customers, vut mind you people get tired of e-mail communication nowadays due to spam and they tend not to read it.
Questionnaire, Survey is better as in this way you get them to know about your business in a transparent way and you also begin to build trust with them, and they in return have respect for your business.
11. Grow your business.
Setting up the business is the initial step of your business plan . To make continuous profit is the main goal. And to achieve this, you always need to be growing your business. It’s going to take time and effort, but you’ll get your profits when you put more efforts into it. Also, collaborating with more established brands in your industry is a great way to achieve growth. Reach out to other companies or individual entrepreneur and ask for some promotion in exchange for a free product sample or service. Partner with a charity organization, and volunteer some of your time or products to get your name out there.
12. Create an Exit strategy.
Last but not the least, for every successful business it is vital you create an exit strategy into your business plan. Considering how you might eventually exit the business if this goes sideways will eventually forces you to look to the future. It is coincidence that most startup entrepreneurs are so excited about starting a business and so sure everyone everywhere will be a customer that they pay little or no attention to creating an exit strategy for leaving the business if things goes wrong.
When you board an airplane, the first thing they show you is how to get off of it. when you board a helicopter the first thing they will show you is how to strap the parachute if the need arise. When you enter a conference room or auditorium, what they’ll show you are the exit doors should in case of any fire outbreak. Your first week of kindergarten, they line up all the kids and teach them fire drills to exit the building. Too many times I have witnessed business leaders that don’t have three or four pre-determined exit routes. This has led to lower company value and even destroyed family relationships.
A good business plan helps you figure out where your company is going, how it will overcome any potential difficulties and what you need to sustain it. But without an exit strategy, the plan is incomplete and not a good one.