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5 Essential Tips Before Launching Your Own Business

5 Essential Tips Before Launching Your Own Business
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By    |   Tuesday, 28 November 2017 01:38 PM

This study shows that there are about 300 million persons trying to start about 150 million businesses worldwide.

Of the 150 million approximately one third of these businesses will launch, thus it can be assumed to be around 50 million new firm births per year or on average 137,000 per day. It is not surprising when another study revealed that roughly 20% of new businesses survive past their first year of operation.

When you carefully look into these disturbing cases of business failure, you’ll find out that there are lots of businesses that have abruptly ended because of poor preparation. As a result, it’s not uncommon to notice a rush-in and rush-out kind of situation in business.

Launching a business requires hard-work and should not be carelessly ventured into. Here are 5 tips that can adequately help you to launch your business;

  1. Don’t Skip the Feasibility Study Phase

Carrying out a feasibility study is like examining a patient before treatment. How can you know if the business you want to venture into has the potential to maximize profit? How can you determine potential positive and negative outcomes of a business before investing a considerable amount of time and money into it? And how can you identify the economic, technological, legal and scheduling factors that can hinder your business?

A feasibility study tests the viability of an idea, a project or even a new business. The goal of a feasibility study is to place emphasis on potential problems that could occur if a project is pursued and determine if, after all significant factors are considered, the project should be pursued. Feasibility studies also allow a business to address where and how it will operate, potential obstacles, competition and the funding needed to get the business up and running. Hence, skipping this phase is like planning to fail.

  1. Do a thorough Market Research

There’s need to collect valuable information from experts, business associates, peers, mentors and consumers to help you find out if there is a market for your proposed product or service. Failure to do this will leave your business to chance.

For instance, I stumbled on the financial insight of Paul Gian on the pros and cons of investing in diamonds. This kind of study is essential as it can guide diamond investors to making the best deals. There are thousands of these forms of information in different sectors of the economy. All that is required is for you to do a thorough research, and make necessary consultations before launching out.

Not every business is profitable. Without proper research to get the right information on the type of business you intend to venture into, the business is already unproductive before its startup.

  1. Be Mindful of your Competitive Advantages

You need to be creative to remain in business. This is very essential when you’re in a saturated market. Even your competitors can copy your competitive advantage and outclass you. This is why you need to have the capacity to initiate newer ways of doing business and relating with your customers in order to have a significant market share.

  1. Don’t Ignore the Power of the Internet

This study shows that 51 percent of Americans prefer to shop online and Ecommerce is growing 23% year-over-year, yet 46% of American small businesses do not have a website. This era is characterized with consumer preferences for online shopping and if you can’t make your products or services available to customers online, then you’re limiting your business.

It’s not enough to produce goods or render services. It’s also about knowing the right medium to getting your products and services to the target market. Consumers are going digital and you should not ignore this trend. The conventional methods of sales, marketing and delivering goods and services to clients and customers are phasing out.

Consumers are expecting a more efficient and quicker method of buying products and enjoying services. This includes getting what they want in the comfort of their home or office at any location. If you’re not prepared to deal with this, you may not likely attract the number of customers necessary to keep you in business.

  1. Be prepared for every Contingency

The top 3 challenges of running a business, according to the National Association of Small Businesses, are economic uncertainty, the cost of health insurance benefits, and a decline in customer spending, with regulatory burdens almost tying for that third place spot. Apart from these challenges, there are more that can cripple your business growth.

The best form of attack is defense. A wise entrepreneur will certainly have a contingency plan to manage and deal with unforeseen circumstances from the ever turbulent and unpredictable nature of business environment.

Richard Agu is a Researcher, Entrepreneur and Freelancer, passionate about entrepreneurship and self-development. Currently, Richard writes for Entrepreneur.com, Goodmenproject.com, among others. Follow him on Linkedin.com by clicking here now.

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This study shows that there are about 300 million persons trying to start about 150 million businesses worldwide.
essential, tips, business
Tuesday, 28 November 2017 01:38 PM
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