Top 7 Factors to Consider Before Starting a Small Business
What you need to know before you start your entrepreneurial journey
Starting your own small business is always exciting! But soon it’s replaced with anxiety, doubt, fear of failure, and other emotions. The entrepreneurial journey isn’t easy. You have to be well prepared to overcome obstacles and hurdles you’ll face along the way. After all, there’s no recipe for success.
Irrespective of the many challenges, running your own small business can be rewarding and life-changing if you prepare yourself for the entrepreneurial journey and develop an entrepreneurial mindset.
Here are 7 factors to consider before starting a small business
1. Turn your idea into a business opportunity
You have a business idea. Great. But how will you bring that idea to life?
Take some time to research the competition. Check if similar products or services are already available in the market and think of what you can do differently to be better than your competitors. Consult a business professional if you have to. Business consultants have a vast network and can help you meet some investors too in the process.
Next, take all those concepts running around in your head and put them on paper. As a business owner, if you are looking for funds, make it more detailed by including an executive summary, market analysis, method of execution, your company or team, product or service, and your financial plan.
This exercise will help you prepare for the challenges you’ll face in the process.
2. Enhance your entrepreneurial discipline
When you are stepping into the role of an entrepreneur, you need to realize that you’re the heart of your business. Everything that happens in your business starts with you. Plan your time wisely. Maintain work life balance. Resist the temptation to multitask — doing multiple things at the same time can lead to lower productivity and innovation.
Be patient when things don’t work out the way you expect them. Don’t get overwhelmed by everything that’s happening around you. Make it a habit to listen to yourself think because ultimately discipline starts in your mind.
Starting a small business can be difficult and risky. To become a successful entrepreneur, you need to learn to love your mission to power through hurdles. Develop a routine and stick to it. Don’t deviate from your business plan, allocate time for developing your business, make sure you don’t exceed your budget, and try to meet the goals you set for yourself and your business.
“We are what we repeatedly do. Excellence, then, is not an act but a habit.” Aristotle
3. Understand your own strengths and skills
Assess your entrepreneurial skills. Understand what you can and cannot do. If you have the knowledge to do everything on your own, great. If you don’t, engage professionals who can do it for you. No single person can have all the knowledge and experience is tackle a challenging situation. But make sure you continue with your research to stay on top of your industry trends.
Surround yourself with mentors who can guide you into launching and growing your business. Don’t shy away from seeking advice. Learn from others’ experiences.
There are many ways you can rub elbows with those who can mentor you. You can find them on LinkedIn, by attending workshops, or simply asking around.
4. Know your numbers
Estimating your costs is one of the primary things to consider when starting a small business. Evaluate the total cost that is required to set up and run your business efficiently. As an entrepreneur, you need to have a good grasp on small business costs, sales, marketing, projected profits, cash flow, and much more.
For example, if you are thinking of setting up a retail store, you need to think of the store rent, licenses and permits, store fixtures such as shelving, display racks, and furniture, initial inventory, signage, website hosting, and so on.
There is a lot of useful information on the internet. Read to know what it really costs to start a business.
5. Follow your passion
Passion is the only thing that keeps you going despite the roadblocks that you will inevitably come across. Being the only person seeing a vision that others don’t can be very lonely and tiring. You will face situations that will make you throw up your arms and give up. From major breakthroughs to letdowns, if you don’t really believe in what you are doing, your job as an entrepreneur becomes that much more difficult.
Remember that you are the head of your own small business. Make sure your business idea is something that fuels your passion. Look for ways to keep yourself motivated. Listen to successful business owners to find your inspiration.
6. Timing is everything
You have everything ready and you want to launch your business. But is the economy healthy? How is the industry you want to enter and grow is currently doing? It is important to ask yourself these questions. It’s best to start your own small business when the economy is more conducive for you to grow. Wrong timing can make it more difficult for your business.
For an aspiring entrepreneur, starting a business when the economy is bad may not be a good idea. But if your product or service is offering a solution to the challenges people are now facing then you may be in luck. A lot of businesses are moving to the online space to taste success. They are offering online tuitions, at-home salon services, online consultations, and so on.
7. Get yourself the right tools
Technology is becoming more friendly to small business owners. From planning your day, scheduling your meetings, collaborating with internal teams, securing electronic signatures online to close deals faster, you as an entrepreneur should know that there’s a digital platform or service for everything. Choose the right tools to get your work done seamlessly and effectively.
For example, you can use project management platforms such as Trello or Wrike, a communication and collaboration tool like Slack, an eSignature software like Signeasy to collect quick signatures online, virtual accounting software like Xero, and many more.
