Running your own business is always an exciting option as you will enjoy a huge degree of freedom and unlimited earning potential. However it also has its own set of pitfalls which you should be aware of.
Most people enter a trance like happy state before they take the decision of entrepreneurship which leaves them with no preparation to enter the rocky world of business. 60% of entrepreneurial start ups fail, so check out the following points to make sure yours isn’t one amongst them.
Are you psychologically prepared?
Running a business entails a lot more than just working for yourself. You will definitely need strong people management skills, good industry experience, tech understanding, excellent grasp of finance and a clear overpowering vision. You must explain to yourself the following points.
Why do you want to start a new business in the first place? Can the business generate enough money to look after your needs? Do you have the skills and the mind set to start off on your own? What are the goals of your business? Will you be able to give the amount of time and commitment required for a start up to flourish?
If the answers are not clear, maybe you should depend some time figuring them out before you take the plunge.
Have you done market research?
The single most important thing for an entrepreneur is to conduct market research to check the feasibility of your idea. You need to survey the market and your competition and take a hard look at your product/ service and ask yourself “Will this work?” Some other questions to consider are as follows.
What kind of products or services are you trying to sell? Have you identified the market? How will you stay on top of your competition?
Select your business structure
You will have a lot of options when it comes to starting your own business. You can either opt for a franchise model of a well known brand or you can try creating your own brand. Starting from scratch will require a lot of resources and time but the creative satisfaction will be huge.
Taking up a franchise is a safer way but you must be prepared to shell out money to the brand owner. Even if you start up on your own you should seriously consider taking the help of business services.
Learn the basics of marketing
As a start up you have to understand that a customer will not come to you on his/her own. You will have to devise ways of convincing your target group that your product or service is better than the rest. Learn the basics of marketing as this will serve you when you are operating a start up.