Want to Start Your Own Business?
November 19, 2015
10 things to consider before starting a business
By Adam Kelly
There is a reason behind everything we do in life. Whether we eat, work or do something else, it is always supported by at least one reason. Similarly, starting up a business should be backed by one, if not a number of motives. Here at Startups.com.sg were consider the most common reasons to incorporate a business and earn a positive livelihood. Our expert business consultants have formulated a quick 10 step guide you should consider if you are planning to start up a business.
1) Why are you starting up a business?
We understand that setting up and operating a business takes a considerable amount of time, energy and resources. Starting up a business requires you to be dedicated and focused on the task at hand, as well as being proficient in time management and people management as well. You should ask yourself “why am I starting this business?” Think about:
- You are your own boss
- You get to work on what you are interested in
- You can be creativeYou can be creative
- It can be very profitable
- Turn your BIG dream into a reality
The advantages of starting up and running your own business can be hugely rewarding and beneficial for you. A strategically thought out and well researched approach should help accomplish this task with ease.
2) What is your business Structure?
Once you have decided that running your own business could be ideal for you, the next step in the process is to consider your foundation or business structure. It is you who will decide the business model and business structure for your operation, which in Singapore can include:
- Limited Liability Company
- Private Limited Company
- Public Limited Company
- Limited Liability Partnership (LLP)
- Sole Proprietorship
Each business entity type has unique characteristics, challenges and responsibilities that you will have to face as a new business owner. At Startups.com.sg our highly regarded business consultants can help you choose the ideal solution for your particular needs
3) Your skills
Know yourself! You should analyze your plus points and weaknesses. It is always better to hire professional people in a certain category/skill where you have no competency. Some people chose the opposite thing by exploiting their weaknesses in business and thus suffer a loss. You should be critical and honest at the same times. Hiring new people, seeking professional advice or asking for expert help are just some of the remedies for areas where you have limited skills.
4) Funds/Money for your business
Money is the basic unit on which your whole business idea’s structure will be built. In other words, without proper and sufficient funds, you stand no chance to do a serious business anywhere in the world.
For example, if you have the best idea in the world, that brilliant idea needs time and proper execution to bring fruitful results. The time factor asks for good supply of funds to be injected into your business. There will be expenses, and you cannot cope with them by having empty pockets. Adequate Funding and budgeted start up business are vital for the success of your business.
Try to be conservative with your funding limits by saving enough money to keep you going through the initial startup period of your business or asking for sufficient start up funds, by convincing investors or banks of your solid business plan.
Understand your counterparts and competitors to excel in your industry niche. You should thoroughly research the competitors in your selected trade or industry. Find out what your competitors are doing well and see where you can make improvements, furthermore, look for their weaknesses and make sure you do not follow or repeat it in your own business. Smart thinking is so important during the research phase. Make sure that you benefit from your competition by learning as much as you can about your industry, your market, how your competitors work and what they lack, and lastly what their plus points are. A well-executed, strategic business tactic rarely fails.
Locate a market for your product or service and identify a target audience. Do not just launch a product or service without in-depth research and investigation of your market place and ideal customer. “Subway” wouldn’t build a restaurant next door to two others, a successful startup business, should be targeting a market where potential buyers, customers and clients are compatible with and interested in the product or service you offer. Furthermore, by strategically researching and analyzing your intended audience, your chances for success is far stronger and more suitable between the market place and your product.
7) Business Plan
Having a well constructed and well thought business plan is vital towards the success of your startup business. The thought process, ideas, discussions, reality based facts and figures, even finances should all be considered when forming a good business plan. There are a number or financial and business management experts who can help create a steadfast business plan, which can greatly improve the chances of applying it to your own business with success and achieving the desired results in return.
It is not compulsory for you to work on a business plan, however it is highly recommended. You wouldn’t want to just jump head first into a brand new project, without an effective plan would you? A structured format for your business plan will do wonders for your start up business and can help you convince investors and banks to follow your dreams. An ideal business plan should be easy to follow and your focus should not stray from the outlined objectives.
Imagine trying to operate a successful business with people running in all different directions, and having no idea of the business plan or operational tactic. Of course, business is always changing, so ensure that you are always open to new ideas, thoughts and innovations.
8) Employees & Staff
Additional staff or new employees can be hired as your business continues to develop and expand. The addition of additional staff will allow you to meet the demands of your customers and clients. However, it is important to hire those people who are skillful, adept and suit your business plan, overall operation and other value added priorities.
There must be a harmonious and professional business relation among all staff members and you should monitor it. Without achieving a positive and highly effective working environment it is almost impossible to achieve any significant results. A team that will work productively together should always be your first choice.
9) Asking for assistance
There are dedicated, hard-working, highly experienced professionals who can help you launch a successful business by sharing with you all their knowledge about your business plan and daily operations. Professional assistance in the form of incorporation services, business management services, financial services and even legal services can be of great help to startups and established businesses alike, if you utilize the information in a proper way.
10) A failed business- what are the reasons?
Any successful business owner or entrepreneur has experienced failure to some degree. The reason they are successful is because they learn from their mistakes, rather than let it bring them down. Luckily, at Startups.com.sg we have an abundance of resources to help you avoid mistakes and operate a successful business. Some of the most common causes of failure for start-ups are caused by setting your sights too high, limited knowledge of the market place, poor funding, poor hiring and failing to have a business plan. These can all easily be avoided and by ensuring you don’t make the same business errors will have you well on your way to business success.
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