Starting a new business is an exhilarating experience. It’s like going out on a first date. Your toes get all tingly, you try to dream of every mishap that could happen and you try your hardest to make it work. And like dating, it’s possible that it could have disastrous results.
In fact, according to the SBA, “two-thirds of new employer establishments survive at least two years, and 44 percent survive at least four years.” For a newbie in the business industry, it might cause you to rethink and falter but in reality, awareness and a definite action plan may just be the key for your venture to succeed.
- The first step is to assess yourself on whether you are ready to commit to the business. This should not be a lark or entered into on a whim. You might find yourself ushered into your business by friends or family but for it to flourish, you would have to give your heart, soul and time into developing, not just operating it. Take stock of your readiness to plunge head first into this pool of opportunity by evaluating your skills, characteristics and experience honestly. It is also important that whatever your reasons for starting a business are, you must do so with passion and determination.
- Never overlook or downplay the importance of planning. Being a small business owner is unlike a trip to Vegas or a summer fling. Planning would help you overcome hurdles that may come your way. If you find yourself in a sticky situation, action plans you have planned for would come in handy.
- Make a typical customer profile by researching about your target market and understand what the reason is behind a downfall/change in their preferences as it pertains to your business. Simply put, if you don’t know your clients well enough, you would just be surprised one morning and nobody even bought your products or there’s a sudden decline in its demand. Where does that leave you?
- Allocate sufficient funds to your venture. Whether you are going to bootstrap your business, use VCs or any other sort of funding, it is important that you would have the foresight to expect realistic revenue. This means, you would have to have enough money to cover your business expenses until your income would be able to pay for it.
- You should carefully choose the location of your business. It has to be in a prime location. Always remember that you are not playing hide-and-seek. Your place of business should be in a site that’s easily accessible to your target market. If you are maintaining a website, optimize it. Be visible and be heard.
- There are a lot of small business resources which could help you with your business. Try visiting their sites or you could even walk up to your nearest Small Business Development Centers for advice and educational services.
There are a lot of tools and opportunities available for the aspiring business owner. Success is a definite possibility and you do not necessarily have to be part of the small business failure statistics. In the end, it’s all up to you and what you can do to succeed.
Great tips for anyone entering into the world of Small Business Ownership! I think it’s also crucial to understand (and work into your business plan) that it could potentially be a few years – that’s right…YEARS – before you start seeing a serious profit when you start your own company. Many new ventures fail to comprehend that they may not be a household name overnight, and not only is that ok, it’s perfectly normal. However, if you maintain the passion and commitment mentioned in this article, you can turn your dream of owning and running your own business into reality!
Hi
I have to agree, Amanda, especially with the first trait you mentioned. “whether you are ready to commit to the business” commitment will always brings good results. Keeping an eagle eye on outcomes is so essential to the successful business owner.
It is also vital to access and understand your competition before you enter into today’s volatile market. Too often an entrepreneur fails to challenge his competitors with a product or service that is in anyway unique .
Margaret McGranahan
AdvancedAR
It is also important that a business owner understand the needs of a particular market and respond to it. Many new business owners try to provide a product or service that “they” love but might not fill a need in their community/area. While is is absolutely essential that you know the market and is prepared to technically operate the business but in the end the business must respond to a need inorder to have any long term success.
One thing that many people who are starting out should focus on is goal setting. Goal setting is also part of the success game plan. If you set goals and commit to bettering yourself everyday, your business will flourish.
Great tips, I have to think that #4 (funding) and #3 (planning) are probably the two overlooked the most and the two that does most in. I’m going to tape these on my mirror and at my desk to remind me of what’s important.
Thanks!!
It’s easy when starting a new business to run around in circles doing busy work but not planning or scheduling out your day because you are overwhelmed with so much to do. You can be busy but not accomplishing much in areas of importance because you failed to plan out your work day and prioritize tasks, (preferably the night before) so you know what to do and can accomplish the important tasks that will keep you moving forward, rather than just being busy but going nowhere fast.