So you've had a eureka moment and the USP for your (imagined or otherwise) product will make billions of pounds in sales overnight...right? People often jump into the business too quickly, not knowing how to survive the tough early years.
No matter how fantastic your product or service is, you need a way to get people to notice it and a way to produce enough of it to keep up with demand, and often that's before you pay for anything became.
When you consider that 50% of startups fail in the early years, it's clear that many entrepreneurs are lured in by the opportunity to be their own boss before they consider anything else that's included in that package is.
So we've put together a list of things you should think carefully about before jumping in at the deep end.
Market research is your first port of call
Is that a successful idea? Of course, because you would buy it, I hear you say. But to be successful in business, you must be able to easily manufacture and distribute the product and make a profit on top of the cost.
Will people want or need your product enough to pay a price that means you can get it to their home from the production stage and still have a healthy margin?
Before taking any action, market research is key to finding answers to these questions. Your idea may have been considered before, but was deemed unfeasible by another business-savvy person. Take a look at your competitors; do they offer something similar to your idea?
What is unique about your product that means your business can outsell them? If they don't sell anything similar, then why not?
In addition to researching your competitors, make sure your target market is appropriate by researching potential customers and asking for their opinion.
The easiest way to do this is to organize a focus group where you encourage individuals to share their candid judgment and ideas on how to improve your product and tailor it (and its price) to their needs. Remember to discuss the packaging and branding you used as you only get one chance to make a first impression and be remembered.
What is your plan?
This mistake is made far too often – getting on the wagon without a business plan is like walking through a minefield. Blindfolded. Do not do it! How could you have assessed the profitability of your proposed business without making expense and profit forecasts?
Have you thought about how much time and money it takes to set up a website, advertise to your target market and create your product (along with storage if that is required) before turning a profit? How many people do you need on your team to successfully bring your product to market?
All possibilities must be considered before starting your business. Especially when investors are needed for your start-up, you will not be taken seriously if you cannot present them with a coherent business plan that shows the success you are aware of.
If you can't grapple with the numbers, starting a business alone may not be for you. Be aware that you are legally required to complete at least various declarations to HMRC. So unless you are able to hire an accountant or consultant who can teach you how to fill them out, you could be heading for serious trouble.
Make your mark
Take your time when deciding on your business name. It's common sense that people need to be able to easily recognize and remember your company's name if they are to become potential customers or suppliers. You need to design a logo, print professional letterhead and business cards, and register the domain name. So if you change your mind later, you've wasted valuable time and money.
Make sure your name is not only attractive to customers and investors, but also doesn't look too similar to any of your competitor's names. Also, do your research to make sure nothing offensive turns up when you type it into a search engine!
If your idea is really brand new, patent it for free before others get wind of it and have a chance to use your idea.
Choose your allies
Starting a business as a sole proprietor doesn't mean you can do it all by yourself. You need to build relationships with affordable (and most importantly, reliable) suppliers, as well as with distributors.
It's also a good idea to be endorsed by those who are already taken seriously by your target market, so building a relationship with these individuals validates your business for new customers.
Don't think you have to do it alone. If you decide to select partners to share your workload, make sure they are people you trust and that they share your goals of getting the business into a profitable position as quickly as possible.
These should be chosen carefully - the best way to succeed is to hire people with skills you may lack so you can aim to pool your knowledge and experience. This way, you are well equipped to deal with any eventuality that may come your way.
Make yourself known
Of course, the first step in gaining a customer base will be brand and product awareness. You need to invest some time (and probably money) in building followers on social networking platforms, which should be done as soon as possible so that by the time your product launches, you already have a loyal customer base to help spread the word.
A website should also be set up that makes you accessible and approachable. This should be easily accessible, easy to navigate and easy to understand from mobile and desktop.
Make sure everything on your website aligns fluently with the logo and branding you're designing - it goes a long way in conveying a professional look. You should also be sure that the host you are using is reliable and that your website loads quickly (this is easily verified with a quick online search).
Are you sure it's worth it?
It's normal to get excited when you've had a fantastic idea (after all, you're not going to succeed without passion anyway), but this makes it easy to overspend with no recouping in the long run.
So before throwing all of your savings into this venture, make sure you've got the value right and that your business plan is in place and forecasting profits in a reasonable time frame.
You should be aware that being an entrepreneur is not a 9-5 job or even a 9-9 job. Especially in the early days, you'll find yourself putting in more hours than any other pastime, and often without giving it back for a long time. Persistence will be the key to the success of your business as it will not be easy.
Many entrepreneurs get caught in a ball of stress that is harder to escape from the more time you have invested in striving for success.
The most important thing is that you cannot or will not continue your business if you don't take care of yourself. Make sure you have a network of people you trust around you and listen to them when they say you can take a day off.
are you made for this
It takes a certain kind of person to turn even the most brilliant idea into reality. An entrepreneur must be able to communicate fluently with colleagues, suppliers, customers and employees alike in order to negotiate the best possible deals and build enough relationships to ensure repeat business.
This is especially important in the first few years after opening your business, as suppliers, investors, and even customers with no established background will jump at the chance to have confidence that your product is worth what you say it is.
Spend your time researching businesses that have failed and make sure you are unlikely to make the same mistakes.
Many inexperienced entrepreneurs give up as soon as they start questioning their product. What do you do when a customer asks for their money back or reads a bad review online?
A thick skin is critical to your success.
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