Starting a business? Things you should consider.
If you are starting a business there are lots of things you need to consider. Rather than rushing in it is helpful to look at a number of things to make sure that you give yourself the best start:
- Are you very clear about what your business will provide?
This may seem very simple and your initial answer may be “of course I know what my business is going to provide” but really think things through. Have you considered what your product or service is? Are there different options that your customer can choose? Do you know how much each option costs you to provide? Have you priced these correctly? Have you tested the market? Do you definitely know that you products or services are desired?
- Where are you going to conduct your business from?
Will you start from your spare room in your own home or will you be renting some office space? The best option for you will depend on your type of business and also who your customers are and how they interact with you. If your business depends very much on face to face interaction you may feel that having your own office premises would give a much better impression to potential customers than a spare room in your home would. You also need to consider how you also structure your day and whether going away from home to an office is actually a more productive solution for your personality. Some people are very good at disciplining themselves to work to a timetable even if at home with its many distractions. Other people need a place to go to to ensure that they undertake the work they need to do rather than busy themselves with other things within the home.
- Do you have the right equipment?
Have you got the technical equipment to carry out your business and is it fit for purpose. Do you have appropriate internet connection and phone lines to carry out your day to day business? Do you need particular kit to provide the particular business or product and have you got the right ones for the job? Do your research and do not impulse buy, you may regret it if you do.
- Financial support
Are you funding the start-up of your business yourself? Do you have enough cash flow to sustain your business if customers are delayed with payments? Do you have a contingency fund if anything goes wrong? Most new businesses fail in the first 12 months and this can often be because business owners have not properly scoped out the costs of starting the business or for having contingency cash available for any issues or problems that might occur prior to getting the business established with a decent customer base.