What to Consider Prior to Starting a Business
So you think you want to start a business. Are you sure? The entrepreneurial world is extremely attractive, but it’s not always easy. Below are 5 questions you should ask yourself before getting started:
What is my passion? - There are many reasons people start their own business. Many feel it is an excellent way to invest in themselves or community. Others prefer the autonomy that comes with being an entrepreneur. No matter the reason for wanting to start a business, many would-be businessowners find themselves in over their heads by not considering what their passions and interests are. Focusing on your interests and passions can make the tough part of this journey a bit more enjoyable. It will also serve to help motivate you during difficult times and growing pains.
Who is my target market? - “If you build it, they will come” is certainly true, but who is “they?” Knowing who your intended market is can help streamline decision-making processes such as determining which product/service you are offering. It also helps with analyzing factors that will help lead to deeper market penetration and faster growth. No company’s primary target market is “everyone.” The more details you can develop about your target market, the better. As your company grows, so will your opportunity to target additional audiences.
Who is my competition? - People often find themselves overwhelmed by either the vast amount of competition they have or how little competition there is. More important than the knowing the amount of competition you have is knowing who your competition is and what market share or positioning they hold. Are they guaranteeing low prices and discounts? Are they branding themselves as top-tier luxury? Do they make their money off of high-volume production? Do they offer boutique, specialized services. Learning your competition will help you develop a plan for standing out in your industry.
What are my goals? - Some entrepreneurs start a business as a second source of income with no intention of it becoming more than that. Others long for their businesses to turn into major corporations. There are also several that fall in between both of these extremes. Goal setting is the key to succeeding at anything in life, but especially in business. Your goals should be SMART (Specific, Measurable, Attainable, Realistic and Timely). Sit down and map out what all you want to achieve in a year. Be honest with yourself about your capacity to achieve those goals and adjust accordingly. Setting small goals each month or quarter can help you easily achieve a measured goal at the end of the year.
Am I ready? - Starting a business takes time and devotion. A large piece of that puzzle is organization and being honest with yourself. You might have to make some schedule adjustments, pull back from other obligations, or evaluate your current list of priorities. Figure out where your new business will fit on that list and what time you can dedicate to it before you begin. This will make the road to growth a lot less bumpy.
