Regardless of whether you choose to become an independent business owner or become a franchisee, research is the single most important activity in making your decision. Without adequate information, you may end up making the most costly decision of your life. Investigate your options by asking simple questions.
Steps for beginning a business:
- What business?
- Is there a market?
- Can you afford it?
- Can you make enough money to make it worthwhile?
What Business Should You Start?
Find something you love to do and you’ll never have to work a day in your life.
Sometimes people start a business because they think they’ll make a lot of money, only to find out that they do not enjoy the business. The adage, know thyself certainly applies here. You should start a business in an industry that you will enjoy for the next 10 to 15 years.
- What do you like to do? (interest and hobbies)
- What do you know how to do? (experience)
- What do you do well? (special skills and talents)
- Which industry(s) involve your interests and use your skills and talents?
- What products or services could you sell in this industry(s)?
- Would you rather sell a product or service?
- What products or services would you like to sell the most?
All successful businesses must:
- satisfy a need or
- solve a problem or
- respond to a trend
Before starting any business, determine if there is a market for your product or service.
Conducting market research:
- How many potential customers are there in your area?
- Will your product or service sell?
- What need does it satisfy?
- What problem does it solve?
- What trend or fad does it address?
- What will be the appropriate pricing?
- Who are your competitors?
- How many competitors do you have?
- What do they have to offer?
- How will your product or service be unique?
- What marketing niche can you capture?
Determine If You Can Afford To Start A Business
MAKE PROFIT POTENTIAL YOUR MOST IMPORTANT CONSIDERATION!
In order to start a business, you have to have money!
In order to stay in business, you have to make money!
The single most common reason new businesses fail is that they did not have enough money to begin with! Don’t forget the old business adage: It takes twice as long and costs twice as much!
Costs to consider:
- Estimate your start-up costs:
- Location design and construction
- Professional fees
- Equipment and fixtures
- Opening inventory and supplies
- Pre-opening labor
- Opening advertising and promotion
- Estimate how much working capital you will need (the money you will need until the business becomes profitable include your living expenses, if necessary)
- Interest on a loan, if applicable
- Brainstorm where you can source money from:
- Savings and investments
- A partner
- Selling personal assets
Determine If You Can Make Enough Money To Make The Venture Worthwhile
Estimate the profit potential for the business:
- Profit (income – expenses)
Think about the amount of time and energy it will take to make the business successful.
Make a decision as to whether you think you can make enough money to make the entire venture worth your time and energy!