10 Questions To Answer Before Startup
To start your own business from nothing is a breathtaking venture without a doubt. This is like an extreme jump from a height. Is it interesting? Certainly, it is. But it is scary actually.
One of the best ways to reduce your fear here is to prepare well.
In fact, it is quite difficult to plan actions for each opportunity and challenge. But you can increase the chances of your future business success by answering the following questions.
Once you answer them honestly, you’ll have a clear idea of what your business should look like exactly, and whether you are ready for it or not.
Retail Or Wholesale Type Of Business?
Retailers sell products directly to consumers in relatively small quantities, while wholesalers purchase goods (usually in large quantities) directly from manufacturers or importers, and then sell them to retailers and other distributors.
An Independent Type Of Business Or a Franchise?
Many well-known companies offer franchises, which are mostly copies of their companies. If you buy a franchise, you are buying the right to sell goods and / or services of this company in a given area.
Is It a Product Or Service Type Of Business?
If you are a qualified professional such as an accountant, a dentist, or an agent, your business will be based on the professional services you can provide.
Although, there are many professionals who can sell related products as well, if they choose to do so. If you are a photographer, for example, you may decide to sell cameras, picture frames and a photo paper.
Do You Need an Office For Your Business?
If you decide to sell goods for example, then you’ll probably need a store, whether it’s a retail store or an e-commerce site. Many successful businesses have both, attracting customers outside of their location.
If you decide to sell services you may not need an office at all, as they may be provided directly to a client’s home. Although you may still need an office to meet your clients there.
What Industry Or Niche Will It Be?
If you are not sure what type of business to start, select an industry or topic that you are not only interested in but where you have a good experience or skills. Otherwise, you will spend a lot of time and money on your education or (what is even worse) fixing costly mistakes, because you do not have any necessary knowledge.
Have you identified the key objectives of your business? Do you have a plan on how to achieve them?
One of the most important steps is to set goals that define what kind of results you want to achieve in both sort and long terms.
Once you have set your goals, it’s time to make sure you have a clear, concise and understandable plan for your business. Also, it would be helpful for your future business if you understood your motivation – what do you need this business for?
Planning and Following Laws
Will you be able to follow your plan without violating any laws or rules?
There are many laws that should be considered before starting your business. Here is a list of some elements you should consider:
- Decide on the type of your business organization (a sole enterprise, a limited liability company, a partnership, a corporation);
- Registration of business name;
- Tax Planning;
- Preparation of all necessary permits and licenses.
- Do you take into account the full financial impact?
Money is a major problem when you are just starting to build a business from scratch, especially if your business has a significant initial costs.
- Here are some alternatives to business financing:
- Start your own business as an additional way of earning but continue to work full-time;
- Work part-time until your business is established;
- Postpone your business establishment until you have all necessary financial reserves;
- Take a loan.
Do You Have Anyone To Support You?
We rarely do something completely on our own in life, and this is true when it comes to business as well. Even if you plan to become self-employed, you can get a huge benefit from your external support group in order to guide you and help you make right decisions.
Your support group can include friends, family, colleagues, coach, mentor, and everyone who can help you with your business in every possible way. If you have an effective support group, you will find that you have a fan, a consultant, and even moral support.
Do You Have All Necessary Traits To Become a Successful Business Owner?
To be a successful business owner, you need a unique combination of traits. There is no standard formula, which makes one type of person more successful than others, but some entrepreneurs are endowed with such traits such passion, drive, dedication and self-discipline that can facilitate a business management.
It’s not difficult to be an effective entrepreneur, sociable and ready to go for reasonable risks if you work on yourself. And it is really needed if you want to build your business and turn it into a profitable enterprise.