Starting a business is not always an easy endeavor, especially during economic downturn. Whereas, the best thing to do during an economic downturn is to start your own business since job security is not assured; your boss may be compelled to sack you to cut cost and save the company from sinking.
Being your boss can be fulfilling and satisfying. Be that as it may, you must consider certain very important points before you take the step of starting your own business. Bear in mind that starting your business may also translate to leaving your current job. You want to make sure that you have covered all the bases before taking that all-important step.
In this write-up, you will know about certain important things to consider before you take that bold step of starting your own business
Research your business idea
The business idea you have may seem like the most beautiful thing to you, but it may interest you to know that several other people may have the same business idea like yours. In fact, some other people might already set up that same business you are planning to set up, and the market may already be saturated, thereby leaving little or no breathing space for newcomers.
Before you step out in such a bold manner, you need to research that your idea and find out if it is still viable or not. If the idea is already saturated, sit down and find out if you can find a better or different approach or a unique angle that can help you to make an indelible mark in that business so that you can cut a niche for yourself despite the break-neck competition already going on in that business.
How economical or profitable is the business idea? Is the business model very good? How many people are already pursuing and implementing that same idea to make money? These are very important questions to ask about that business idea before you burn your boat.
Additionally, find out if that business idea is legally protected before you venture into it. Is there a pending or already issued patent? Do not start until you have found answers to these questions.
Create a business plan
You are not ready to start a business until you have created a business plan. The business idea should not be in your head alone; it should be put down in black and white or typed out on a computer if you so desire. The business plan serves as the guiding principle or blueprint for the business. It can serve as a reference for you if you face any difficult circumstances along the way and need guidance on how to proceed. In the future, your employees can also refer to the business plan for guidance.
Do you need to solicit for a loan or other forms of funding for the business? The lender will demand to see your business plan to find out if you should be given a loan or not.
You must not skip this step. If you do, you will find yourself backtracking and coming back to it. The business plan can help to keep the direction and vision of the business alive at all times. Not having a business plan is synonymous with erecting a building without a plan.
Structuring the business
Before you venture into that business, you need to plan how to structure the business; this is what they call organogram. It will tell everyone in the organization you are about building who answers to whom. This way, there will be complete orderliness and proper organization in the company. Subordinates will know who to report to, and senior officers will know who to hold responsible for what.
If you have no idea about how to do this, you can consult companies offering similar services like yours and consider how they have outlined their organograms. If this method does not work, you can always hire a lawyer to help out. Company lawyers are trained professionals in this regard. The two of you can work together to arrive at an acceptable organogram for the company. After the final draft, it should be placed where every member of staff can see it so that they can be properly guided.
Professional expertise
Before you start the business, ask yourself if you have the adequate professional expertise to handle all aspects of the business. How much knowledge have you acquired about the business itself? Do you plan to take up the entire processes or you plan to hire professionals for some aspects of the business? How much of the business processes do you plan to outsource? Will you need to go for one or two training to get yourself prepared for the business?
Answers to these questions are very important. If you do not know about the technicalities of the business and plan to employ someone with the technical knowledge, you should learn about how things work so that you will not be deceived or shortchanged; some employees can take advantage of their bosses once they notice that the bosses do not know how the business operates. Not to worry; everyone can learn, including you.
Get your website ready
The appearance of your website can speak volume about the quantity of service you are offering in your company. A professional looking website will encourage people to take an interest in your business, and it can help bring in more customers so that you can have the edge over your competitors. Even if you plan to rent a brick and mortar office for the business, you still need a website. The scope of a brick and mortar office is limited unlike that of a website that can be accessed from people far and wide.
Conclusion
You must consider all the points mentioned above before you attempt to start your business. A careful consideration of the points above will ensure you do not take any wrong step while setting up the business. A business plan is the first thing you must create before you take any further step in the business process.
