duties. It is not something everyone like to do it, but when it comes to opening a small business, do your homework is essential. Why?
According to the SBA, 50% of small businesses fail within the first five years. Know your market, do your research, and having a solid business plan establishes long-term foundations for success.
So if you're still dreaming of starting your business, or if you already have an aligned business plan and financing, here are seven questions you need to answer before you start your small business.
1. Why did I start a business
We all have our own reasons for wanting to start a small business - for our own boss, to offer a unique product to build a business from the ground up, to be an entrepreneur -. the list goes on and on
Whatever your reasons may be, know that it takes hard work, sacrifice and capital. Especially in the front.
If your reasons for opening a small business does not align with that reality, you may want to reevaluate. Or, take it as a sign that you need to do more homework to really understand what it takes to build a successful business.
2. Do I understand the ins and outs of the industry?
You are passionate about your business idea. As such, you probably have a good understanding of the industry you enter.
But do not assume that you know. Do your homework.
Read everything you can about current industry trends. Learn from others who have started businesses in the industry. Join associations. Understand the opportunities and challenges that you might face, and make a plan to address them.
3. Does my flushed business plan?
You can not talk about starting a small business, let alone a business plan. His formidable? It need not be complicated, but you need to have. And you need to move it out of the rinsing time. In your plan, include:
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Company and description of product / service
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Analysis market
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customer analysis
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competitive analysis
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The marketing plan
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operations Plan
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financial
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Chronology
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short term and goals long-term (1, 3, 5 years Plan)
Remember, your business plan can and will change over time, but having an initial business plan is extremely important that you get the business up and running.
4. Am I confident in the financial plan?
Starting a business costs money, and even the most successful companies take a period before turning a profit. How much do you need to get the business and running, and how will you pay for it?
Whether using savings, investors or loans to finance your business (or a combination thereof), do you homework to understand whether you have enough to cost and start-up operations.
5. Do I have a marketing strategy?
You can have the best business idea in the world but if you do not have a plan to market it, your business will fail. While it can be difficult to allocate limited funds to marketing, it is a smart investment. Marketing generates interest and traffic - both vital for sales
As you do your homework, research marketing strategies that work for your unique business such as :. Social media, online, printing / advertising, events, promotions, email campaigns, or partnerships with compatible companies.
6. What Staffing Do I need?
If you're like many small businesses, you can be the only employee for a while. Other small businesses, however, need staff on the first day. Do your homework to know if you need staff immediately, and how much. Also consider how many people you need as your business grows and evolves. These are important inputs into your business plan
See also :. 5 easy tips to hire the best employees
7. What Loops Do I Need to Jump Through?
The last thing you want to do is to prepare to open your business, only to find that you need additional licenses or permits. It costs time and money. As you do your homework, research the legal requirements or permits for your line of work.
Conclusion
Starting a small business is exciting, but do not be tempted to take the plunge before doing your homework. Get organized and do the work before opening for business will help you be ready for the hard work and rewarding future.
What are your tips or questions about starting a small business? What would you add to the list? Leave a comment below
See related resources :.
- 16 things you never knew you needed to start a small business
- 5 Tips for a successful start
- Small Business HR Basics
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