Starting your own business requires a plan and perseverance. After the initial hardships, the payoffs of starting your own business are worth any initial difficulties.
While starting your own business may be difficult, the pay offs can be well worth the hours of work. Before a person can dive into the world of entrepreneurship, there are several key components of a business that must be taken into consideration. When starting a business, most people start from square one. Many aspects of a company are often times not thought of when people contemplate starting their own business. These four elements are vital to getting your business started.
Business Idea:
Before you start a business, you must to ask yourself this important question; is there a market for my product or idea? One of the worst things that can happen when starting a business is spending thousands, only to realize that there is no practical use or market for your company. Unless you have a truly revolutionary idea, it can be difficult to make money in a lacking or non-existent market. Also, keep in mind that your business may fail if you enter into a competitive market. For example, it would not be the brightest idea to try to launch a new GSM company in The Gambia. Unfortunately, your invention and business will probably be unsuccessful, considering the fact that there is already four GMS operators in a very small market of The Gambia. So before you spend your life’s savings on a “brilliant” idea, make sure it’s a smart investment.
Budget:
Starting a business can be a costly investment. Many entrepreneurs make the mistake of spending too much money without considering the consequences. The smartest financial idea when jump-starting a company is to make sure that you have 18 months of business and living expenses covered. Before you make your personal business a full-time commitment, realize that it will always cost money to run a business. There are many different expenses in a business. From advertisements to rent to paying your employees, it takes thousands just to get your business off the ground. If you dive into the world of entrepreneurship financially unprepared, chances are that you may find yourself in a deeper hole than you began in.
Customers:
While you may think that you can spread the word about your company, your best form of advertisement isn’t a sign; it’s the people. Customers are a vital aspect of any business. They are able to tell their friends and family about your product or company. Customers are also advantageous to your company because they legitimize your product or idea, confirming that you have a potential market for your business. They can also provide your company with valuable feedback. In order to get your first customers, it is best to start with people whom you already know. Try sending a letter informing friends and family about your company and follow up with a phone call a week or two later. This will spread the word to potential customers who may also introduce your business to other potential customers. Customers are a vital aspect of a business. After all, they’re the ones who will be purchasing your product.
Answering Service:
Hiring a telephone answering service to manage your inbound phone calls can make your business look bigger to customers and potential investors in your product. The last thing you want if you are just getting off the ground is to look like a small company and having your phones answered by voicemail or your answering machine will portray that image you are trying to avoid.
