Branching out on your own takes a huge amount of courage. It’s an anxiety provoking time. But, if you have logistically thought through this business venture, it could be the best thing you have ever done. Detailed bellow are the 5 major things you need to consider before starting your own business.
1) How much of the main tasks will your personally complete, and how much are you planning to delegate?
If you posses all the skills required to do the bulk of the work for your new business, thats great. However if you don’t, a wise move might be to consider partnering with someone who has a set of skills that you don’t. By taking this step, you are maximising the chance that your new business will be a success.
Another option is to consider consider the kind of budget you can deligate to out sourcing work. This might be outsourcing work that you either are not skilled to do yourself, or work that you might not have time to complete by yourself.
2) Can you adapt to the required roles within your business?
Maybe you love baking and want to open your own bakery. You might love baking cakes, but as a business owner you need to be prepared to work in an office too. Running your own bakery requires you to do some paper work, make executive decisions, manage money, answer customer queries and many more tasks. Are you prepared to to all this as well as bake your cakes?
3) How well do you know your target market?
If you are investing allot of money, time and effort, you NEED to give your business the best chance of succeeding. 50% of all business fail within the first year. You do not want to be one of them. Your target market are the group of people that put money back into your business and keep it going. Spend time researching and surveying your target market. Make sure your company gives them what they want/need, and most importantly something they will actually spend money on.
4)Know your competition
This is about making sure there is room in the market for your business. What’s already out there? Who will your biggest competitors be? Do you have the capacity and resources to provide a strong rivalry with them. If not, is there something slightly different that you can offer that they don’t? This may just be enough to get you into the market successfully. Then when your company is strong enough, you can think about competing for the same thing.
5) Know yourself
Starting a business can be VERY stressful. Look after yourself because YOU will be what makes the business succeed. Know when you are reaching your personal mental boundaries and work with these. It can be helpful to create a staged start up plan for your business. This includes outlining each phase of your business development in small, manageable chunks. Include deadline and a description what each phase will involve you doing. Also include what you want your business to look like at the end of each phase. Planning like this allows you to see how your are progressing your business. It also helps to keep the development manageable. You want to make sure each phase’s completion provides enough fuel for the next ones success (I’m mainly talking about money). A well managed business has the greatest chance of success.