If you aspire to start up your business venture something close to your heart then listed below are the 5 things you must know before starting a business
Most entrepreneurs who start do not research the basics well and hence result in getting overwhelmed with their business or they are unable to make their business sustainable.
The seed capital that one invests in their business venture is the most critical part. Where to go to obtain seed capital? how to finance your business? how much capital should one invest? are such basic questions which one needs to deliberate beforehand.
The latest trend is to start small and scale-up. Taking a loan from the bank or an angel investor and not being able to take your venture off the ground would result in tarnishing one's image in the market and worst-case filing for bankruptcy.
The best way to take calculated risks is to invest personally and invest small. Most internet business and network marketing plans can be kicked off with a shoestring budget. And in a worst-case scenario is if the idea doesn’t work out losses and reputation are not at stake
Many times an idea would be great but if the timing is not right the business won't work out. Microsoft had launched the first tablet way back in early 2000. Yet it didn’t get much attention from the public. Later when WiFi and internet connectivity through mobile networks blossomed Apple took a run at it and changed the way we use tablets.
One needs to see if there is a market demand for their product or service and whether the market is sustainable. Another point to keep in consideration is competition. Not only from peer groups but also from tech companies. Technology has wiped out so many small businesses by launching online easier faster and cheaper means to get the work done. E.g. Post offices have shut down since the popularity of email took speed. Other industries to be impacted are tours and travel booking companies, cyber cafe’s
For the business to grow it should be easily replicable. Setting up a system that can be easily copied and followed is inevitable for any business to thrive and flourish. If we walk into any apple store across the globe we will find the same ambiance the same uniform for personnel, the same presentation of products in display. This shows how well the system is replicated across nations, cultures, and ethnicity.
Any business needs a fresh inflow of new customers. However, what sustains the business is a strategy that has existing customers become repeat customers. This doesn’t mean that one doesn’t need to expand their customer base. But sustaining repeat customers is a clever way to ensure an influx of business daily.
Cash flow early and sustainability
Most businesses fail due to the drying up of incoming money. The most crucial factor right from the outset is the need for a flow of cash. When the cash comes in it brings in a spurt of confidence and leverage to take more action. Initial wins are crucial for re-investing in the business which will enable long term sustainability of the business.
It is hence very important to get paid immediately on providing the service or product. Many businesses are such which require the business owner to take the stake of business investment on themselves instead of charging the customer upfront which blocks the cash flow of the business till they get paid. Also, this brings in an additional headache to pursue customers for collecting due payments. Bottom line get yourself paid upfront on delivery of service or product.