You could be holding on to a great business idea but are being bogged down by doubts and fears about venturing on your own. After all, many others have gone before you thinking that their idea might just be the next Facebook or Amazon.
In the US alone, 5.4 million applications for new businesses were filed in 2021 according to the US Census Bureau. This was a record number and quite surprising, given that it is in the middle of a global pandemic.
Whether it is worth the risk or not, there are many other things to consider before you really take the plunge. Entrepreneurship is a different yet challenging path, and this kind of lifestyle is admittedly not for everyone. But if done right, the rewards more than makeup for all the difficulties along the way.
To help you decide if this is the right decision and timing for you, take a look at some of the most important considerations when you want to start your own business.
Here Are Five Crucial Things To Consider When Starting A New Business:
1. The Market Size
Before selling any product, one of the first things you need to look at is whether there is a demand for it. Even if it is a new technology or a unique innovation, it should be able to address a certain need or be able to solve a particular problem so that people would be willing to pay for it.
There should also be a significant number of people who would recognize their need for your product or service, otherwise, you might not be able to grow a sustainable business after the initial hype dies down. Remember that the business must be viable over the long term in order to let you recover the effort, time, and money that you would be investing.
2. The Competitive Landscape
Once you have determined the demand, you then need to see if there are other companies that are offering a similar product because you will be competing with them for the same group of customers. Compare their current offering with what you plan to launch in the market and look for areas where you can win.
You may also talk to some of their current customers and see if there are aspects they are dissatisfied with. If your product can plug in these gaps and give them the solution to the cause of their dissatisfaction, then you have a winner on your hands.
3. Legal Considerations
Right from the get-go, you need to know how you can protect your business from entities that could take advantage of your hard work in the future. Consult with a business advisor or a legal expert who can guide you on the appropriate legal structure for your type of business.
If you are going to enter the professional services industry such as advertising or administrative support, consider applying for trademark class 35 in order to secure your business identity and prevent others from copying or using your name in the industry without your permission. Reputation is very important in this line of work, so you must exert all efforts to maintain your credibility and good rating.
4. The Size Of Investment
When starting a business, you must go into it with both eyes wide open. Take a good account of the full investment needed to get the business running and how long you would need to keep supporting it before it can become self-sustainable.
As you do this, you also need to consider where the funds will be coming from. Aside from your personal investment, you could also approach financial institutions and other potential investors who, then make them buy into your vision for the business.
5. Your Team And Partners
While it is possible to start a business by yourself, you would eventually have to scale up as you grow. If the intention for the business is to expand and stay for the long-haul, it is never too early to start thinking of which individuals and organizations you would want to be with you in your journey.
Aside from the headcount, you also need to consider the common values that you share in order to avoid future conflicts due to a clash of principles.
You also need to consider whether to hire full-time employees or freelancers, where to find them, and when would be a good time to start hiring. This will enable you to better manage your projects and ensure the satisfaction of all stakeholders.
When you don’t have a plan for your manpower, you could be caught unprepared for a sudden influx of projects, and you could either overextend yourself or be forced to turn down some of your potential clients.
- 5 Ways to Grow Your Business in 2019
- How to Protect Your Business From Cybercrime
- 10 Crucial Things To Know Before Starting A Business
- How To Choose the Right Legal Advisor for Your Business