You have probably made the decision to start an entrepreneurial venture. You have certainly researched on why startups fail, the amount of effort involved, the various sources of capital, and so on, and you are positive that you are up for the task. However, before you make that first step, you need to ask yourself some questions and be sure to provide substantial answers. Below are a few.
Why do you want to start a business?
This is probably the most important question that you need to answer before embarking on your journey. What is it that you are seeking to achieve? Are you trying to boost your income? Are trying to satisfy a market niche? Are you trying to make a living by doing something you love? Depending on the answers to this question, you can narrow down and choose the right business to start. For instance, if you are seeking for a business that does not interfere with your social life, then you should consider one that does not open during the weekends and public holidays.
What form will the business take?
Depending on the answer to this question, you need to choose the best business form for your venture. If you will be going solo, then sole proprietorship is the best option for you. If you need to risk it with a friend, then the best form is certainly a partnership. Based on the size of your venture, you might want to build a company. All these forms have advantages and disadvantages. Be keen to evaluate them all before making a decision.
Which sources of capital can you access?
At this point, you have chosen your preferred business type and form. Now you need to fund the business. What sources of capital can you access easily? Is it personal savings, a loan from a friend or family member, a bank loan, or venture capital? All these sources have different terms. Choose the one that is cheaper to access as long as it fulfills your capital requirements.
Which skills do you bring to the business?
Your role in the business as the business owner is invaluable. What skills will you bring to the business? Is it accounting, management, or marketing? Based on the answer to this question, you need to have a plan on filling the skills gap. If you are good in marketing and management, then you will certainly need to hire an accountant. You can hire either on a full-time or part-time basis. However, this will depend on the size of the business.
How will you market your business?
Most startups fail because of taking marketing lightly. Some entrepreneurs have a misconception; for as long as the business is open and running, customers will come in. It is your duty to inform them what products or services you are offering. How do you intend to reach out to your customers? Based on your marketing budget, you can choose to use the internet, print media, mass media, billboards, among others.