5 Things To Think About Before Starting Your Business

Posted November 28th, 2017 by Martin

When you decide to start your own business, it's an exciting time. You're full of ideas on how you'd like the business to run, and you can't wait to get started. However, if you're not careful, you could rush into the process, and end up making some critical mistakes. New businesses are fragile, and you want to do everything in your power to ensure that they survive, and then prosper. The key to doing this is asking yourself some important questions, and taking the time to flesh out the answers in depth. Here are a few of those questions you should ask yourself before you start your business.

Where Will Your Business Be Located?

First up, you should know where your business is going to be. Is it a home based business? A brick-and-mortar store? Do you need a warehouse to store supplies or inventory? Each option comes with a host of other questions, and so you need to think about this early. Even if you've already settled on a location, you should take the time to reconsider your choice, and see if there is a better one out there for you. According to Irene Dickey of the University of Dayton's School of Business, in the brick and mortar retail world “the three most important decisions are location, location, location.” This applies to other businesses as well, so take plenty of time to think this over.

Who Are You Going To Work With?

Employees play a large role in the success of any business, and so you want to think about who is going to be a part of this new business. If you plan on working alone to start off, you probably don't have much to think about. But if you are going to hire employees, or if you are working with a friend or family member, it's important to assess their skills, and decide what the best role is for them. You don't want to waste money on a bad employee, or get into business with someone who is unreliable, so be sure to think long and hard about who is going into this new business with you.

How Will You Reach Your Customers?

Of course, your business will not last long if you don't bring in some customers. You can't hope that people are just going to find you, or that word of your new business will spread rapidly. You'll need to be proactive, and develop a marketing plan to reach your customer base.
Try and come up with something that is innovative or unique – something that will help you to stand out from your competition. For example, Ikea developed an augmented reality app that allowed customers to see what it would be like to have Ikea's furniture in their homes through their smartphones. Of course, you might not be able to afford something like this when you're just starting out, but the point is to think outside the box.

What Equipment And Parts Do You Need?

On your first day of business, you don't want to suddenly find that you don't have everything you need. Before you launch, come up with an exhaustive list of everything you might need, and make sure you get it before opening day. In addition, you want to make sure that everything you are using is of a high quality, so that everything you make is of a high quality. Quality is important if you want your business to last, and for that you need dependable tools and equipment. For example, KB Delta has been able to become “one of the largest compressor parts manufacturers in North America” in part due to their dedication to plastic compressor parts. The parts you use and make with your company are important, so don't settle for low quality.

Can You Afford This

Finally, setting up a new business is expensive. You have a lot of things you need to spend money on, and for many people, they quit their jobs to have the time, meaning their source of income is gone. Whatever your situation may be, you need to ensure you have the money to run this business. This means enough to get started, but also enough to keep you running through the first few months or even years, until you are able to turn a profit. Jumping in before going over your finances is a big mistake, so don't let your enthusiasm get the better of you. If you take the time to answer all of the questions above, you should find that your business is better prepared to start. The important thing is to take it slow, consider every possible angle, and try to account for it.
Planning a new business is exciting, but if you don't ask yourself hard questions, that enthusiasm won't be enough to save it.

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