7 Things to Consider Before Starting a Business

1) Why are you starting up a business?

Setting up a business is a time intensive task – you need to be dedicated and focused in order to be successful. The rewards of starting up your own business can be great, but think carefully if you have the attributes and right sort of personality to cope with going it alone. What is your goal for starting a business? Is it financial reward or the freedom that comes from being your own boss? What is your motivation?

2) Skills

Identify your skills and particularly your weaknesses. Be honest and ask others for input. If you are less hot in certain areas, outsource these areas of the business or seek professional advice when you need it. Spend your time doing what you are good at.

3) Company Structure

You will need to decide what business structure you will trade under (sole trader, limited company, or partnership) and what obligations and responsibilities you will have as the owner of a new business.

4) Funding

Even if you have the best idea in the world, you are unlikely to make a killing instantly. Make sure you have enough money to live on for 6 to 12 months before committing yourself to self-employment. Alternatives include approaching the bank or an investor. Both these options will require a solid business plan.

5) Competition

Thoroughly research all your competitors. Identify weaknesses they may have and try to ensure your product or service is better. Competition is a very healthy thing, but you need to do constant research and never be complacent.

6) Marketplace

Make sure that there is a market for your product or service. Do plenty of market research and take notice of what your potential customers tell you. You can get very useful feedback that will improve your product or service.

7) Marketing

How are you going to reach you target market? The best product in the world will fail if it has no route to market. Think about your ideal customer – what do they do? What do they read? Where do they go? If you can answer these questions you will begin to identify the best places to advertise.