Low Budget Entrepreneurs: 7 Things to Consider When Starting a Business
If the COVID-19 pandemic has taught us anything, it’s that life is incredibly short, and global infrastructure is remarkably fragile. Amid such uncertain times, many now face new challenges (redundancy, remote working etc.) in more typical employment options. Meaning we could see a new age of entrepreneurship. If you find yourself with additional time on your hands during these uncertain times, maybe it’s time to finally get that business idea off the ground.
Starting and running a successful business is the ultimate dream of any aspiring entrepreneur. It gives you the chance to earn a living and create a stable and secure environment for your family. As a bonus, you also get the rare opportunity to change society, even in a small way. Take it from me, owning a business gives you greater freedom socially and professionally, particularly when it comes to decision-making. You also get the chance to employ people and offer solutions to some of the problems your community faces.
This post is for the budding business owners and aspiring entrepreneurs out there. Here are seven things to consider when starting a business 🙂
Things to Consider When Starting a Business
Entrepreneurship is a road that many people are reluctant to walk because of the numerous underlying legal, financial, and personal challenges, risks, and uncertainties. The following is a list of key things to consider when starting a business to minimize these challenges
**Disclaimer Alert: I have written this post as a general guide to help my readers, however, I am not a qualified expert. Rachael Hope Media accepts no liability for any loss or damage howsoever arising out of the use of this website or reliance on the content of the website.
Uniqueness and Practicality of Your Idea
One of the biggest challenges that come with beginning the entrepreneurship journey is finding a unique and practical idea. There are no guarantees that a dozen other people haven’t already pictured the same solution to the problem that your business seeks to address. Before you turn your brilliant idea into a business plan, search various platforms, including the patent registration office, to ascertain the originality of your idea. In case someone had already beat you to the idea, figure out ways of tweaking it to give the idea your personal touch. Ensure that you understand the practical aspects of your idea.
Industry and Customers
Carry out pre-feasibility and feasibility studies about your idea. Understand the industry you intend to operate in, the competitors, and your target clients. Map out the demographics of your clients to get a better idea of marketing mix and strategies for attracting and retaining customers. Understand the consumer buying behaviours of your potential customers. If you intend to attract investors, familiarize yourself with the pool of financiers you can draw. Set out strategies that will help your startup to get the required financial support.
Starting a business may be driven by passion. However, without an effective business plan, you’ll be driving blindly towards the desired destination through a risky road. Your business plan is your beacon that helps in gauging whether you’re on the right track or veering off the road.
From budget estimates to expected breakeven point, your plan will ensure that you have a well carved out path and steps towards turning your idea into a successful business. Your business plan is the blueprint for actualizing your dreams and turning them into a financial reality.
Availability of Technology, Skills, and Expertise
A profitable business idea may not see the light of the day of you don’t have the right technology, knowledge, and skills for implementation. For your idea to take off, take stock of your expertise from the onset. Strategize on how to acquire those skills you lack. If your concept requires skilled talents that you might have to import, such as a virtual receptionist, then perhaps it is high time you reconsider the practicality of the idea.
As a standard practice, it is recommended that you invest in your passion. Consider investing in ideas that will require readily available labour to reduce your startup and running capital. Alternatively, you can also enrol in short courses to acquire skills that are necessary for running the business. Always ensure that you can access the technologies needed for the successful implementation of your business idea.
Any industry is guided by dozens of local and international laws that affect the operations and bottom lines of any business. Before venturing into business ownership, understand the legal and statutory obligations of your business. From corporate social responsibility to tax obligations, the legal environment can build or destroy a business brand. Avoid costly litigations by consulting a business law expert to help wade through the legal mesh that entrepreneurs have to contend with daily. As a startup, your bank accounts and the brand image would not withstand the devastating effect of a court case.
Startup Financial Capital
A brilliant and practical business idea will die at conception without financial capital for implementation. Be realistic when estimating the budget for your proposed business. Ensure that all bases are covered to avoid running into financial troubles on the first day of operations. When determining the startup costs, include all expenses you’ll need beyond the breakeven point. This estimation will ensure that you plan to avoid being inconvenienced by any uncertainties and surprises that your market may spring once you start operating.
A prudent assessment of startup capital should also include sources of finance. Indicate in the budget whether the finances will be sources from personal savings, grants, or bank loans. The source and amount of startup can significantly change your financial projections and scale of operations.
When considering the location of your business, have a big picture that extends beyond accessibility. Be detailed-oriented and evaluate the population of the location, the demographics of the populations, and availability of social amenities. These factors will determine the size of the market and consumer buying behaviours in the area. Ensure that your business location, the building, has ample parking space, safe, clean, and accessible. The last thing you need when starting a business is a dimly light, scary, and crumped up office space with washed-up paint.
A broader view of a business location should also include the existing business laws in the area. For example in America, in addition to the federal and state statutes, local administrative areas also institute laws that can affect your business.
Entrepreneurship can be such an exciting journey with numerous social, financial, and professional benefits. Owning a business is a great way to achieve financial security and freedom. You also get the chance to manage your schedule and create time for your loved ones. However, it also comes with pitfalls and setbacks. So, before you decide to invest your savings into a business idea, take time to learn skills, every business owner needs to succeed. Assess your idea critically and ensure that all the bases are covered to avoid a disastrous financial loss.
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