5 Things To Consider Before Starting a Business

Owning a business is the dream of many, but some startups fail because of a lack of planning. If you are thinking about starting a company, ask yourself these important questions.

1. How Will You Get Funding?

DaVita’s executive CEO Kent Thiry always cautions that without sufficient funding your business will likely fail. There are a number of ways to get funding, but you’ll need to have a plan. You can either save up money or open a credit card account. Or sign up with a crowdfunding platform where several people donate to your business, in exchange for returns if your enterprise is successful.

2. What’s Your Niche

Ideally, you’d like to sell to everyone in your community or online, but such goals aren’t realistic. You’re better off finding a niche market, a small group of people who are looking for what you have to sell. In a niche market, you have less competition, meaning you’ll sell more of your product. Find the specific area you’re an expert at and make sure that expertise meshes with what your customers want. Look at the competition and then come up with something your competitors don’t offer.

3. What’s Your Marketing Plan?

A marketing plan is an outline of the ways you’ll bring in customers and promote your products or services. Come up with realistic goals you think your company can achieve and then set a budget of what you can afford. Consider the audience you’d like to have and come up with a plan to reach those people. Analyze what’s working and what isn’t. Also, look at what your competitors are doing to get some ideas of what your marketing strategy will be.

4. Do You Need To Hire Workers?

In the beginning you might be able to do all the work yourself, but down the road, you will need to hire employees. If you’re starting to feel burned out, hiring help can ease that stress. Do your homework, however, before you place a help wanted ad. Think about what skills you want a potential employee to have as well as how much experience is required. Also, look at what the industry in your area is paying. Then write the best job description possible so you’ll attract the right people.

5. Where Will Your Business Be Located?

If your work is done online, you can have a home office, but if you will be dealing directly with customers, you need to find the right location for your business. Wherever you decide to have your office, make sure you can afford the rent. Take a careful look at the lease and understand all of the details.

Find a location that’s safe to protect both your customers and your products as well as your employees. Make sure the location has plenty of parking for your customers and good lighting. Also, find an area that doesn’t have a competitor close by.

Answering these questions and making sufficient plans will ensure your business is a success. Your business will grow in no time.