4 VITAL THINGS TO DO BEFORE STARTING A SMALL BUSINESS
In this article, I will share the four most critical things every small business entrepreneur must do before starting a new venture.
1. Do Market Research and Find a Profitable Niche
Before getting your feet wet and investing in your business, assess the marketplace and find what products people will pay a premium price for.
Don’t get yourself into a commodity market where price competition rules everything; keep that strategy for larger corporations.
The last thing you want is to sell your products all day long and end up with little to no profit at the end of the year.
Looking at customer reviews and feedback reacting to your competitors will give you great insights into what’s working in the marketplace and what isn’t.
This step can teach you a lot about other businesses' mistakes.
The market research also gives you a good benchmark for understanding how other businesses innovate to serve the customer better; you can take some of these ideas and apply them to your business.
You can do market research online on Amazon, Yelp, and other marketplaces or give your competitors a visit to their physical stores and find how customers feel about their businesses.
2. Secure Enough Funding for Running Your Business
One of the biggest mistakes small business owners make is that they plan to start a business but never consider the costs of running the business.
They are over-optimistic about the amount of revenue a new small business can generate.
Most small businesses can’t earn enough income to sustain themselves in the first few months.
Before starting a business, make sure you have an extra six months of running and marketing expenses secured in your business bank account.
If you don’t have that money, don’t start a business! Instead, find a high-paying job, an investment opportunity, or a side hustle.
3. Prepare a Simple Business Plan
An idiot with a plan can beat a genius without a plan — Warren Buffett
A business plan aims to outline the basic strategy of launching your business, such as your marketing and financing plan.
Use your basic business plan to explain the group of customers you are serving, your marketing and customer acquisition strategy, and the costs of running your business for the next six months.
A business plan doesn’t have to be complicated; Things can quickly shift for a small business.
Give yourself a simple direction and clarity with a basic plan. The rest is a matter of execution and consistent change of your map to match the reality of the market.
4. Have an Emergency Plan
Most entrepreneurs are optimistic by nature. They imagine the best-case scenarios and never see or like to imagine the downside of their newly born baby.
To succeed in business, you need to think about the possibility of failing in business while keeping a positive attitude.
Your emergency plan has to describe the total financial loss, how to liquidate your business assets, and how to repay debts.
Avoid rushing to invest your money into a new business. Instead, slow down and manage every step wisely.
Use these tips to prevent yourself from fatal mistakes that could be avoided easily by taking a few deep breaths and simple planning.
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