Is 2011 the year you start your own business? Do you have an idea on what to do or sell? We’ve put together a quick list of questions and things to think about when you’re considering starting your own business.
- What do “the people” need or want. Do you know what to sell or what product to offer? A quick answer is to sell
what you love but what you need to do is sell what people will buy. Sell a product or service that will solve a problem. If you aren’t really sure what is needed, browse the internet for ideas – check out business news and trending items and then evaluate your experience, knowledge, skills, contacts and interest. - Know the market. Once you’ve decided what to offer, you need to decide who your target market is. Will you specialize or generalize? Can your products be used by children and adults alike? Keep in mind that you can’t be all things to all people and a product that appeals to all ages and demographics might be too broad. Target a specific niche and you will have better luck. Get a foothold in that niche and then expand.
- Who are your competitors? Do they sell the same goods and services? How are they advertising: Internet, social media sites, local newspapers, etc. Is your product unique enough to fill a demand? How can you set yourself apart from the competition? Contact professional associations and trade groups to find people in the same business and network.
- Getting the word out. In addition to advertising, building a website and participating in social media, you will need to be networking with individuals and businesses that could benefit from your product or service. Another great way to build a business and gain access to business owners you may not have considered, why not check out a trade organization. With trade, you are exposed to a plethora of potential business clients and you can also buy and sell through the use of trade dollars and free up cash for other business expenses.
- What’s the plan? Do you have a business plan? Having something in writing will keep you on track. You will need to know how much it will cost you to provide your product or service and then you will have to analyze how much you need to sell it for in order to make a profit. What are your overhead costs? Will you need distributors for your products? Do you have experience in the field and the expertise needed to carry you forward? Put together a spreadsheet for your expected sales and expenses.
- Full time or part time? How will you operate your business until it starts bringing money in? Will you have to keep your current job while you jump start your new venture? Do you have enough money to support yourself during the start up phase?
- Will your business have longevity? If you’re looking to fill a niche that you see today, will that need still be there a week, a month, a year from now? Are you offering a product or service that can be easily emulated by your competition? Are there trademarks registered for similar products? Does your product or service come with add-ons?
- Contingency plans: If you test out the market and your product doesn’t fly do you have a back-up plan? Were you planning to just test the market and not make a complete commitment (ie, keeping your full time job until you saw whether you achieved success).
There are a lot of things to take into consideration when you’re looking to become an entrepreneur but the more planning you do in advance, the more likely you are to achieve success.