9 Things You Need to Know Before Starting a Business

9 Things You Need to Know Before Starting a Business

Sometimes we need to hear from others what we already know. When you are about to start a business, you are likely pumped up with emotions. Fueled by pure passion, you are ready to burn everything at once. It’s a good idea to take a deep breath and focus on some details before you jump right into the cauldron that is a small business. 

Value proposition – what are you solving?

If you are planning a startup, it has to be rooted in an unsolved problem that you are solving or a better version of an existing solution. This idea is going to be your value proposition. The strength of your value proposition will decide the fate of your fundraising campaigns. Work on this. If you have an idea, spend time with it. Learn more about it. Talk to people about it. Let it mature in your head and then write it down. Remember to keep it simple.

Market research

This is the step where your idea truly matures. Start looking for companies that offer a similar or the same product. Learn how they are doing in terms of revenue and profit. Try to make a sentiment analysis on the subject matter – learn how customers feel about said product, and consider if your proposition can make a difference. 

If your analysis says it can, then try to figure out the numbers – how much money you have to put in and how much returns you may expect. Even if you expect the returns 2 years later, you should be well aware of that reality.

Also Read – 5 Robotic Process Automation Tools to Streamline Your Business in 2023

Make a plan, and write it down

This is a simple document for yourself where you write down exactly how you see your business succeed. Write what kind of company you want to build, figure out how much revenue the market might yield, and write down your doubts and concerns. This will work as the root on which you will erect your venture.

Mind the numbers

Numbers are very important when starting or running a business. You should be very well aware  of the earning potential of your business. If you think your earning potential is subdued by the necessary expenses to run your household, maybe you should go back to the planning phase again. 

Even when you are running the business, you should have your head wrapped around the financials. It will help you make better decisions on the fly.

Surround yourself with experienced mentors

Get advice from wherever you can get it. Learn to separate good advice from bad. And keep good advisors close. Always remember, you cannot do everything by yourself. You need help and guidance, especially in the starting months. Keep the company of people who have done it before, who have seen what works and what doesn’t. It is going to pay off in the long run.

Recognize the need to hire

Once again, you cannot do everything by yourself. You are likely to start all alone. But you need to recognize the point from which you’d need help. It may be a lawyer an accountant or a marketing manager, but you will need help. Recognize this need and act upon it fast.

Funding

This is the hard part. While you can start your business by bootstrapping with help from friends and family, you will eventually need more money. You would approach angel investors and face rejection. But you need to have the heart to keep trying. Consistent effort will not go unrewarded or at least, that is the faith you will have to hold close.

A hard pill to swallow

From the moment you decide to quit your job and start a business, you will lose sleep, you might become anxious, there will be terrible pressure to provide for your family, and you will see your savings depleting fast. You will work harder than you have ever worked. At this point, you will have to hold it together and push through.

A product of passion

All the hard work of starting a business pays off if it is a product of passion. If you are doing what you are doing out of sheer passion, you will be able to pull through the hardship with ease, otherwise starting a business might feel like the worst job you’ve ever had.

Parting thoughts

Financial independence, a luxurious life, and a place in the one percent, all of these can be achieved by running a successful business. You will likely create employment for dozens of people. Starting a business is a marvelous venture altogether. Just remember that there are no entitlements, and you’ll be good.