Priority Considerations

Starting a business can be very exiting. A successful business will be a good accomplishment in your life. You need not work for someone else any more. With that excitement we tend to miss things that are essential in starting a business. Do not hurry. We all know the feeling of wanting to be there as quickly as possible. Before jumping to the water, you must consider some important things that you should not miss. Most businesses tend to fail because of simply not doing the initial preparations carefully.

It is important that you been able get approval from your bank for possible funding. Because you will need funding for your business sometime or the other, for very few people can do business without funding. Even if you do not need funding, you have to meet the tax and other requirements of the government and other relevant occupational bodies.

Finding the right business for you can be a daunting task. First you will have to organise some research relating to possible opportunities and make sure you can do it. Ask yourself the question can I do this? And what are my abilities when you find a possible opportunity.

Make a list of possible opportunities and check what are the ones that suite you the most.

You have to write your resume and check the relevance of your previous experience to the opportunity.

Are you familiar with the daily operations of this type of business?

Do you have the financial stability for this business? You will have to do some investments to achieve possible income goals.

Ask your self, will this opportunity be a profitable one? Some businesses are profitable only in certain environments and in certain times. How do these apply to your possible business opportunity?

Will you be happy doing this business? You have to consider your personal fulfilment.

What is the risk level and can you manage to face it in a difficult condition.

Will you have sufficient funds to overcome such a situation?

How many hours you need to work in order to succeed in this business?

These questions help you to select possible business ideas. From these business ideas if you have selected the business opportunities that will meet your target, now is the time to check the marketability of the product for each of these business ideas.

Considering your target market, what is the probability of your product being popular?

With the products competing in the target market, you will need to develop an image desired by your possible customers. Think of the possibility of achieving this.

Your product must be able to compete with the prices in the same niche market.

What can you do to keep your prices competitive? If the price is higher than the production cost; you will have no problem with this. If otherwise, you will have to minimise your production costs. And you have to consider how you are going to do this.

Prepare a budget for a set production goal.

How are you going to promote the product? You might need some expenses allocated for your marketing campaign.

Consider the possibility of the products demand in future too. Some products go down in demand with time. Read magazines and articles in relevant areas. Then you know the possibility.

What is the uniqueness of your product to your customers?

Do you have the possible equipment needed to start this project?

If you can afford the development and production of this product, it is worth while trying. The business idea that brings the highest possibility of all these criteria will be the likely business for you.

You have to consider funding, licensing, government rules and regulations.
Write a business plan. This plan should include all the above categories and how you are going to overcome possible situations and what will be the benefit of your business to you and the community. A well presented business plan will no doubt get the approval for funding.

Blue print of your business is the Plan

A person who is starting his or her own business must have a written business plan that can help organize all the bits and pieces together and make the business a success. You might think that you can keep track of everything and make the business going without undergoing this extra trouble of a written business plan. Having a well structured written plan makes it more likely that you do not miss any of the important factors that you might need to run your business smoothly in future. Probably a well written business plan is the blueprint of your business. Your first business plan will be the insight to your future growth. It will be the base to introduce a new product, enter into a new market or acquire a new business.

A person who is starting a business has to be very careful. You have to have a good idea that will work. You must be firmly convinced of your ability to make it work. Taking time to create a written document make you realize the missing links and put them together to form a good business plan. Some people think that if this fails, I can start on another one and experiment. This is gambling. These sorts of attitude will eat up your time and money.

Ask yourself “What will be the likely costs to incur and can I manage to afford it?” Go to your small business advisor and take advice. Make sure that you do not violate the rules laid by the government. Check whether you need to get a license for the particular type of business you are planning to do.

For most business owners, their product is unique. Offering a unique product is not the only way to success. There is more to a business. You have to keep the books, manage payroll if you are employing staff and also you have to pay bills and taxes. You have to prepare a budget for this. Going through the process you will be developing assumptions regarding costs, labor, the number of potential customers, pricing and many other factors.

You will need a good business plan if you are going to your bank for a loan. Your bank will evaluate the plan before they pass a loan to you. It is very important that you consult your small business authority or business advisor before you go to the bank. You might be a genius, but remember always two heads are better than one. Talk with you family and friends; they will most likely point out some important things to you. Be flexible and learn to bend the face to fit the facts than bends the facts to fit the face.

Going through a business plan, you will have a better insight to the business than you were before. Now you can go an implement your plan. You will be far better conversant with your business than jumping head over heels to do a business. You will have the strength and ability to run the business with confidence. And will have the ability to save your business in troubled waters. This is the strength of writing a good business plan.

Planning your business

Have you ever thought of having your own business? No doubt you already have. First time this thought came in to my mind I was confused. I wanted to start my own business venture, but how, when and where. Those were the questions that came into my mind. You would have experienced the same situation, but never panic. Your thought is well worth working upon and might be a blue print in your success. What would be better than owning your own business? One of the best things you’ll ever do is turning your business dream into reality.

First and foremost thing to remember is never take a quick decision. Think before you leap. This is the main reason most small businesses fail. You need to have a proper plan and sort yourself out. Ask yourself, why do you want to start your own business?

You want to achieve financial independence
To have freedom
Enjoy doing what you like
Don’t like working for others
Want to make a career change
Want to be recognized
Need flexibility
You do have a product or service for which you feel there is a demand.
Other reasons.

It can be any of the above. First better write them down. Secondly asses yourself, your abilities, do you have any talent or things you’d enjoy doing most? Are you a well organized person? Are you the kind of person who can put a good initial effort in starting a venture and continue it along with you? Can you manage time? Make a list of your personal strength and weaknesses. Most successful business owners are hard working and motivated. You need to be well aware of your skills and abilities. Your idea of being in business must be based on reality, not fantasy. Otherwise you are not likely to run an efficient business

Choose the business that suits you best after considering the time you can allocate to your business. You must be able to organize your business professionally. Success in business needs more than just opportunity or skills. You have to have a can do attitude. The most important thing is the way you approach your life as well as your business. Balance you family life with your business. We have a choice whether to be happy or miserable. Many people do not realize such a choice is available to them. What ever you do you need more than courage, you need a combination of hard work, skill, perseverance and good old fashioned luck.

If you have assessed your skills and abilities on a specific product or service do some research on it. The Idea you have in mind, was it successful before, do research on successful people and get information and also find out how much time and effort you have to contribute for the business.

Find out the possible market for your product or service. What is your target market? What is your minimum startup cost? Can you afford it? This is very important. Asses your financial situation before you start to prevent possible bankruptcy.

Do not keep things only to yourself. Share your idea with your family, get their support. That is more important than anything. Develop a business plan to suite your needs. Discuss with a qualified business adviser. You will have to incur marketing and other costs. If you need financial assistance, you have to have your business plan ready so that your financial institution will asses your business idea and if they think it will work, they will be happy to lend you money,

You must register a business name or a domain name. This would help you from future inconveniences. Find out whether any license and requirements are needed for this business. For some types of business you may need a license or permit. Asses your start up costs and estimated income and operating costs at least for one year. Consider how any shortfall will be funded.

If you are employing staff get advice about awards and minimum conditions of employment including occupational health and safety.

Consult your financial adviser. Good financial management is critical to the ongoing success of your business. Your costing and pricing should be accurate. Know your breakeven point. Be vigilant in sales and cash flow forecasts. Remember to keep your records up to date this is really important.

Make sure Insure your business and use the latest technology as possible so you do not have to bury your head on business. Enjoy your wonderful business.

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Written by Mahesha Iddagoda