Long story cut short, every individual thinks of starting a business at some point of time in their lives. However, only 4% of new business startups read a landmark of ten years. Shockingly, around 50% of the small businesses never see the light of the day after crossing the 5th year. This is because most people don’t know about considering various things when it comes to starting a new business.
Simply put, most entrepreneurs only desire to be on top of everything when it comes to starting a new business. In other words, they are unaware of the different factors to be mindful of when jumping on this bandwagon.
Because they have acquired a certain skill set, it becomes important for them to put it into practice and benefit from it. Because everyone wants to make a profit with little capital, business is what occurs as first thought in many people’s minds today. So if you are wondering what those factors are, you’ve come to the right spot.
Here, we will sift you through each of them individually. Make sure to go through this text till the end:
A Business Idea
Simply put, every business starts with an idea. However, this idea has to be unique, so it can easily start working in the right direction. Simply put, if you want the business idea to stand out, you need to come up with something that nobody else has presented to the public. Having that said, not everyone dares to come up with a unique and brilliant idea.
For instance, if you have decided to start an open-air rooftop café, you must know that hundreds of people are already working on it. Yet, you can make a difference to the world by answering the following questions:
- How can I make the idea work better?
- How will I get market share in a certain category?
- How can I become better at my craft amongst the others?
You might have the most lucrative business idea, but unless it doesn’t fulfill the loopholes in the market, it won’t work. So despise listening to the frustrations of your family or friends; try to get a deeper sense of what you are about to put yourself into.
Market or Demand
Now that you have started to run your business, the next major step is to research the market. Put yourself in the shoes of the customers and ask questions to yourself. If you decide to sell the product locally, you might have some demand for it. However, if you want to go to the international level, you will have to understand the rules for dealing with them internationally.
Here, only a market survey will reveal the details that you will need for the product. For instance, you need to know about the current market size, buying habits of the relevant audience, different market segmentation, growth potential, market share, and the social media usage of the consumers.
The Legal Requirements to Start a Business
More than anything, you need to study the legal requirements of starting a business in a certain locality, state, or country. For example, if you decide to open up a digital marketing outlet in Hong Kong, you will understand the legal process. For this, you will have to go through Get Started HK to register your business.
Furthermore, you might have to hire an attorney to take care of the paperwork as well. Unless you aren’t well versed with initiating a business in a certain state, it wouldn’t be wise enough to invest in physical infrastructure or human resources. Therefore, we recommend you go through the legal requirements before cementing the decision to work in any country.
After all, a Hong Kong incorporation will entail you to take legal requirements in consideration before setting off.
Knowledge and Expertise
Once you know the type of business that you want to do, you will have to acquire the knowledge or the required expertise right away. This entails conducting research and planning, of course. After all, each of these efforts will rest assured you about having everything in the right place to kick start your business.
Here, investing in a business plan is highly beneficial in the long run. It will reflect the worth of your business in the market and tell you whether or not the business idea will be picked up by the masses. So if you have enough knowledge, you can start working on your business.
In contrast, hiring a marketing consultant will be a great option. Meanwhile, you can continue the research to stay updated with your knowledge.
The Startup Costs
Money is the lifeblood of any business. Therefore, estimating the startup costs should be the top priority when initiating a new business. Simply put, you need to assess the cost that is required to successfully run the business. For example, if you have planned to open up a factory and have a manufacturing plant, the startup costs will be very high.
However, if you are thinking of investing in furniture or office equipment, the starting costs will be little. On the contrary, when a retail business is concerned, you need to add the storage charges. After all, an office can be started with little money, but the rest are costs. Once the business has been set up, you need to arrange the working capital to keep on running it.
Unless you are not aware of your competitors, it won’t be easy for you to survive in the highly competitive business market. For example, if your product will be a monopoly, the competition will be of no disturbance. However, if you are about to present a perfectly competitive product in the market, you will have to weigh the pros and cons of coming up with it.
Analyzing the competition is important because it allows you to remain one step ahead of your competitors. This way, you can get to know how they have positioned themselves in the market and evaluate their marketing strategies.