February 25, 2021

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Things to consider when starting a business

5 min read
4 Factors to Consider Before Starting a Business


It is the dream of many people to start a business. Having a business helps you to have a means of income that you can easily pass on to your children. You are also directly responsible for how much freedom you have and how quickly you grow when you have a business. This is as opposed to paid labor when most of those decisions will lie in the hands of your employers. However, when you want to start a business, here are some things that you should consider.

Location
The first thing you want to consider when you want to start a business is the location where you want to site the business. People that will need your products must be available in the location. It is also important that your shop or office should be located where there is high traffic. The higher traffic implies that more people will be able to see you. With more people seeing you, you will have a higher chance of making sales.

The type of business
You will need to have a particular business you want to start in mind. It might be a business related to something you are passionate about. It might also be that you have seen an opportunity for that business and you believe it is a business that will easily thrive. You should make a feasibility study and come up with a business plan. You do not want a situation where you will start the business and be forced to close it within a few days after. You should also inquire about what is expected of you, in terms of government regulations and be sure you have the license for the business where applicable.

Knowledge about the business
You should also consider how much knowledge you have about the business. The higher the knowledge you have about the business, the higher the chances of being successful. With adequate knowledge about the business, you will be a major part of the business. You will be able to make decisions that would drive the business forward. However, this will only be the case if you have expert knowledge. If you prefer to employ a knowledgeable person to help you run the business, you must have a basic knowledge of the business at the very least. This will help you to be able to go through the report and be able to recognize discrepancies than when you are forced to swallow everything you are told no matter how ridiculous because you have no idea. It will only be a matter of time before an untrustworthy manager takes advantage of the situation to enrich himself at the expense of the business.

Capital
You will require some money to start a business. You should know exactly how much you will need and where to source it. Furthermore, you should also have some money aside for expenses for the first few months. It would be advisable to have enough money to run the business for between 6 months and 1 year. Most businesses, especially those with long term viability, will need some time before they become profitable. Hence, you should be able to keep the business running before the business becomes profitable.

Not making mistakes that will affect your reviews
Once your business start, you should be conscious about how you relate and attend to your customers from the very first day. You do not want your first sale or one of your first few sales to bring you a negative review. That could easily discourage other people from patronizing you. However, when you can satisfy all your customers, it will be easier to get a lot of positive online reviews that would subsequently encourage other people to patronize you. Your business will quickly become stable, profitable, and have a better chance of being here to stay.

Employees
You might need employees that would help you with various aspects of the business. You might want to avoid this completely when your business is just starting. However, if you must get employees, then you should get only those that you need. The only exception is if you have enough money to cater for their salaries and other entitlements that will be due to them. If you do not have such a budget, get only those that are required before the business can run smoothly. When the company becomes viable and can pay existing employees with excess to pay some more, then you can now bring in other employees.

Accounting
It is important to put in place a very efficient accounting process for your business. What has led to the failure of many businesses is because of the poor accounting process. Hence, there were many leakages in the business that led to the loss of money and made the business to be unprofitable. After some struggle, the owner will be forced to close down because of a lack of funds to continue running the business. The sad case in this instance is that with the right accounting process, transparency, and integrity, the company would have not only had enough money to continue to run but will have been profitable. You might need the input of experts and get the right business accounting software to make it easier and stress-free to manage your business.

Marketing
Marketing is very important for your business as it serves as the lifeblood of any business. Marketing entails spreading information about your business to customers and prospective customers. The information will include who your company is, what you sell, why you sell them, to whom you want to sell them, why you want to sell to them, why should they buy the products you sell as well as why should they buy yours as opposed to buying similar products from your competitor. Without marketing, people that would have patronized you won’t even know that you exist or that you sell a product they are interested in. Every day, you find people looking for where to buy a particular thing and you have businesses selling those things and not knowing where they should buy them from. It is with marketing that you as an entity that sells what people need to find and tell those people looking for where to buy from that they should buy from you. Hence, you should invest in marketing especially as a new business so that people can start to find you.

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