Key Things to Consider When Starting a Business

Three out of five people will tell you that they are simply too scared to start their own business. They are scared of losing money, scared about not meeting the demands, scared about the state of the global economy. Interestingly enough, global companies are scared as well because the economy has been rough for almost a decade now. Having this in mind, from those five people, only one out of two will actually start his or her business today.

Do you want to know why this is working out for them?

There are 24.6 million small businesses in the U.S. only, and they are currently a backbone of the entire States. From those 24.6 million, 43% are in a need of hiring up to four employees at this moment, so they could satisfy the demands of their consumers. 17% of the 24.6 million need more than 10 people, and only 2% are not sure about expansion. This trend is reflecting on other continents as well and Australia, Asia and Europe are all supporting the development of small business companies, governments are giving out loans, banks are as well, and there are even companies that will be there in every step of the way to make sure you succeed in creating a successful business.

It is not because they are all desperate, time for desperate measures is behind us and it brought us nothing good! It is because this system works. Local entrepreneurs have the advantage of constant communication with the consumers, plus they have the freedom of trying a new approach with small losses and then thrive from the ones that actually work out, this is simply the best way to compete in the modern age economy. Are you still scared? Don’t be, just prepare yourself properly and consider these three key factors before you start. After that, success is just a question of effort and work that you are willing to put in, and people tend to fight the good fight when it comes to their own business.

pic

1. Know your competition

Before you even start you have to know if there is a demand for your line of business. And if not, where is that optimal place for you to do business. It doesn’t make too much sense opening a bar next to two other bars, and as a matter of fact, you need your business to offer something different but complimentary. Don’t start a business before you’ve done all the research work. You have to prepare yourself for every step of the way in advance.

Good market research is an extremely important aspect that you have to respect before you decide to start your company. Ask yourself, who is currently providing a service that you want to provide as well? How are they doing it and what are they doing wrong? Who is your targeted audience and how is the competition reaching out to them, and can you top that? Start from there.

2. Brand is influencing decisions

Name of the company is equally important as your product or service is. People not only tend to do business with companies that have established their brand, they actually feel a need to identify with the service that is visually compelling to their needs. Have your brand all set up before you even start. This way you are creating a connection between you and the customers, but you are helping yourself and your employees to feel like a part of the bigger, stronger picture.

Advertising is the cornerstone of building a brand, so make no hesitations when you are getting your name out there. Web presence is also an imperative, and more than 54% of small business owners advertise their service online.

pic

Have a unique sales proposition. Figure out what you can offer that is better from the competition, what is it that you give to your consumers that they can’t get anywhere else? It will help tremendously with mouth-to-mouth advertisement.

3. Funding

Ideally, you should have a decent amount of money to start your business. It doesn’t have to be such a large sum, most business owners start with 10.000 dollars and work their way up from that point. But if you are not financially prepared, you can always get a loan. Loans can be terrifying, a commitment that actually scares the potential business entrepreneurs from even starting a business, so this is why you need a great business plan and well-organized staff.

Furthermore, there are multiple ways to cut your company incorporation costs, especially if you’re planning to collaborate with offshore agencies. For example, incorporating a company in Singapore is usually considered a great way to circumvent extensive processes related to getting the necessary loans and tax registration. Many business experts regarded Singapore as one of the best countries in the world to found a company, and justifiably so. Therefore, this is another interesting option to consider in case you’re constrained in terms of budget.

In any case, your business plan has to include every possible expense that you may have. Be prepared for every situation. When it comes to your employees, make sure that you are providing a good example, because studies have shown that 83% of the workers are good and dependable only because they had a good mentor. You can’t afford to pay the slackers and people that will not put the effort, and cutting the losses in human resources is something that you absolutely need to avoid in your first year of business. Your first employees have to be informed and active participants of the business because they are your future managers for others that will come. It is a matter of trust and hard work.