Many of us want to start businesses. We dream of the day when we can work for ourselves and own a business and make lots of money. Some of us want a service business where they may want to help others. However, many of us do not realize what is involved in starting a business and what it takes to be profitable. Let me propose several points to consider before you venture out to start that business which may be eye-opening to you:
- Do you have the personal experience in a particular business? Having experience in a business that you want to start will help you organize the start-up and be aware of the problems and pitfalls you may encounter. Having experience helps to know how to deal with suppliers and vendors, use negotiation techniques common to that industry, realize the terms of payment typical in that business, and the jargon used. It certainly will make things a lot easier and lend to your success.
- Know your weaknesses. Whatever they may be like not being able to read financial statements or understand the income statement, or use QuickBooks, these can be easily remedied by taking a few courses at a local community college. Of course, as time goes by and your business can support it, you can hire a bookkeeper or an accountant to perform the tasks that were originally yours.
- Have passion or excitement about the industry. Having passion and the love of the business helps draw people into your idea and they will become excited too. This attitude will help in obtaining financing and increasing your patronage. Imagine going to work every day and being happy about it!
- Be able to discuss your business concept in relevant, concise language. This is a key to having people understand what your concept is all about. Especially being able to articulate the “why” of starting the business and having the vision will move you to be a success. Having that sense of purpose will help drive you through the trials and tribulations of a business and keep you going. What is it that you will be achieving in the marketplace?
- Think about the other companies which are similar to your business concept. Are they growing and selling more because the economy is good and the industry is in a growth phase? The answers to this question will determine whether you will be able to succeed in it, and you won’t have to be as smart as those trying to survive in a declining market.
- Will your business cause a change in the way people do things? Will you be eliminating the middleman in the supply chain? Being able to make a change in the way people do things or do business is a great feat, and one that is a great business idea. Consider Jeff Bezos of Amazon.com. He changed the way people purchase books. No longer will you have to go into a book store to purchase a book, just buy it online. If you can change the world, then the odds are that you have a strong business concept.