Things to consider when setting up your own business

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Written By LawrenceGarcia

Demystifying the world of finance, one article at a time.

 

 

 

 

Starting a business can be an emotional roller coaster; between stress and excitement it may leave you confused on where to begin or what steps need to be taken next. We have created this list of tips to keep in mind when starting up your own venture – this should provide some direction!

What is your market?

Before introducing your product or service, conduct extensive market research to understand your target market. This means understanding both customers/audience and competition as well as any possible hidden obstacles to entry.

To ensure the success of your business, it is imperative that you understand your customer demographics and why they purchase from you. What are their characteristics such as age or country origin; are they male or female and why do they require products/services from you etc?

Are You Competing Against Competitors? Explore what similar companies to yours are doing, and whether there’s anything distinctive you could bring to differentiate yours – have something you have which makes you different?

How will you manufacture and distribute?

If your company depends on products, sourcing them at an economical cost is vitally important. Finding reliable manufacturers who deliver timely with reasonable pricing can be time consuming and frustrating; finding such individuals can be time consuming as well.

Establishing samples, designing and procuring your item of choice requires patience and persistence. You may have to work with multiple manufacturers until you are completely satisfied with the result.

Be certain that a written contract between yourself and a manufacturer clearly defines both what you expect to get out of it and the price you will pay, since certain manufacturers could potentially increase their costs over time or years afterwards, potentially creating headaches, decreasing margins, or harming your company in other ways.

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How will you sell?

What your target audience and product/service offering entails depends entirely upon its location and nature. Do you require space for your company, such as shop front offices, warehouses or additional outlets? If this is the case for you, be sure to factor these costs into your business plan so you can ensure a profitable endeavor. Including these expenses as part of your strategy for profitability will allow for maximum return.

Marketing your business effectively is essential to its success, and planning how you’ll promote its visibility is paramount. Without an effective plan in place, no one will become aware of what services your company provides – which means no sales!

How will you grow?

How you market your business will depend on its product or service and your target market. However, every company must possess certain essential items. A website is now an absolute requirement since consumers rely heavily on google to locate items online or local stores selling particular goods. Without one for your company it will remain invisible among millions who visit daily searching the internet to shop!

What do you envision for your business years from today? How will you create and produce products or services, and do you have the ability to develop new ideas in the near future? Can diversifying products increase future success? And can customers expect your product or service?

Even as you embark upon your business’s inaugural steps, having an objective vision for its long-term success is of the utmost importance.

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Will you need funding?

Many entrepreneurs have excellent ideas but lack the financial means to turn them into reality. Crowdfunding platforms, angel investors and venture capitalists may all provide financing solutions that could assist. A deck, which details your concept, reason(s) for asking for investment as well as plans for its expansion may be required when applying for investment; but entrepreneurs must first decide if investing their time and energy on this process before beginning this endeavor.