Starting a business is no an easy task especially one that needs adequate preparation in order to succeed.
Most neglect the adequate preparation needed to fully kickoff and join the crowded number of businesses doing the same thing.
Determine the Business Opportunity:
Most people just enter a business without proper research and knowledge about that business or venture they just think that the business would generate money. Before entering any business you need to determine how profitable that business is or can be.
What can you see in that business that once you implement it, it would change that industry and bring about growth and profit for you. So ask today why you are entering that business and what potentials do the business have to offer?
What value can you bring to the table that would be useful to your customer? One way to see an opportunity is to look at another industry that is different from that you intend entering and look for businesses that are successful in doing things differently that bring value to their customer and see if there is something you can copy from them.
Who would buy from you:
You have a rough idea of who would be interested in your product or service. You can’t sell to everybody but you can sell to everyone that buys things from that industry but it is one step at a time.
First, Carve out a niche and sell to those who your current product appeal to. When you have gained ground with them then you can set out to capture other sets of potential buyers. You can gradually target anyone who buys from that industry.
Do you have enough money to start that business after identifying the opportunity to pursue and determining the target audience to serve?
Therefore determine how you would source for money in order to start your business. Is it from personal finance or from family and friends or from investors? Knowing this and how you will get your hands on the capital is very important in starting your business.
Business Model and Plan:
Setting a direction for your business is also important and requires a lot of thinking. How are you going to exploit that business opportunity that you discovered, what target segments or audience are you going after, how do you intend to make money, who are you partnering with, what channels would you be using to sell and communicate with your target audience, all this are necessary and also a business plan would help you in the forecasting of potential profits to be made if implemented well.
One of the aims of every business is to create customers or appeal to existing customers.
A good Marketing system can help make your business visible to your customers both physically and mentally.
A smart business should prioritize Marketing and treat it as an essential component of business development. Therefore Marketing should be viewed as a necessary investment and not as a cost to the business.
Having these five steps in mind and building towards it are necessary for building a business that can stand the test of time.