Starting a Business? What You Need to Know First

Who hasn’t dreamt of being his own boss and launching a business that will one day become the next Amazon or Google? The idea of having the freedom to pursue your dream is exciting for anyone who has gone through the drudgery of corporate world. While this is indeed exciting and noteworthy you also need to know that starting your own business is not something that everyone can do. It takes lot of effort and commitment to build a business that will one day rival Amazon of today. For every Amazon there are hundreds of others who did not make it. Don’t lose heart, though. With good understanding of what it takes to start a business and little perseverance you too can build a respectable sized business even if it is not the next Amazon. Here is a 5 step process you need to go through before taking the plunge.

  1. Know Your Strengths and Weaknesses – Before you even take any action do some self reflection and know who you are. Not everyone has what it takes to start a business. You need to spend significant effort and money while having a good support system to be able to call your own shots.
  2. Find the Market – Having a good business idea is one thing. Finding a buyer who also will like it and pay for it is another. Not all business ideas have the sizeable market to support your business. Uncle John and Aunt Shelly do not make a market. Test your idea with some of the folks you trust with giving you the right advice even if it is bitter.
  3. Understand Competition – Even if the market exists for your product or service if the competition is intense and has already cornered the market you will find it difficult to penetrate it. You are better off pursuing a different market or at least find a niche for which you can attract customers.
  4. Test the Idea – Before going all out on the idea it is better to prototype few samples and test them with your target customers. You will not lose everything if you take this approach. You will either know that there is no market for your idea or be able to tweak it based on the customer feedback before going with full launch.
  5. Launch the Business – Finally, if you have gone through all the above steps and convinced yourself that there does exist a market and you can succeed against the competition can you take the plunge and launch the business. Of course, you need to go through all the requisite paper work in terms of registering the business with appropriate government agency and getting the permission before you can officially start the business. Companies such as Wisteria small business solutions can help you take care of this as well.

What is your experience? How have you succeeded or failed in starting your own business?

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