Business

What Do You Really Need To Start A Business?

5 things you need to know before you start up a new business

There are many people that wish they could start up their own business and earn a good living from doing so. So why do only a small handful of people even try? Of those triers, only a tiny percentage will earn enough to live comfortably from their enterprise. It can seem to be a game of luck. On the contrary – those that succeed are set up for the startup before they even began. Here’s how:

Money?

It’s true that it usually takes money to make money. However, where and how that money might be invested can be quite different from business to business. Every little helps. If you have premises from which to operate, then that will help you move forward. Perhaps you already have the equipment you need in place from the start? Or maybe your work requires no formal premises or equipment, but you have to buy materials up front?

You are likely to need some money to get you going. Some businesses can get started without any formal investment. Others use crowdfunding online or formal investors to raise thousands. This might cover the bills and salaries of those working to launch your new product or concept.

Education?

The more you know, the more confident you’ll be that you can tackle any and every challenge your business faces. Many entrepreneurs graduate from courses like this business management online degree program before they officially launch their startup. Formal education will provide you with the skills and know-how to apply what you have learned to your own company.

Your education might be business oriented, or it might be specific to the industry you’re working in. You might be a programmer looking to launch an app company. Or you might have completed a mechanic’s apprenticeship and want to open your own garage. It might not matter what level of education you have or what subjects you studied. Your communication skills must be professional to succeed. Good written and verbal communication is essential.

Support?

Your family will have to sacrifice a lot if you are to succeed. They’ll have to give up the weekend ball games, and the bedtime stories. They’ll have to miss you at mealtimes and find that you’re too busy to take their calls. It is incredibly hard to juggle family or personal life with your entrepreneurial role. Setting up a business takes more than full-time hours. A supportive family can help to lessen the guilt and give you that drive you need to succeed.

As your social life probably dwindles to nothing, a good circle of friends will still reach out and offer help wherever they can. This can save you money and offer the emotional stability you need to power on through the hardest moments of your project. You will still need professional help such as law expertise or specialists with the knowledge you don’t have.

A Brilliant Idea?

Most people have that lightbulb moment where they think they’ve come up with an award-winning concept. Two things might happen from there:

  • The lightbulb goes out, and you get on with your day, or
  • You start getting to work developing your idea, researching the market, and pushing to make it happen.

Many of the best ideas are the culmination of months of research to find a gap in the market and a product that people are crying out for. The ideas that are close to your heart might not be marketable.

How do you find inspiration in the first place? What’s missing from your life? What tasks do you hate? What chores are cumbersome and overly complex? What you’re looking for when you answer these questions is solutions to a problem. That’s what the big idea really is, and it’s marketable!

How Much Research?

Lots. And lots and lots and lots. If you’re investing money into this product, you need to be certain you’ll make your money back plus a reward for your time and effort. Go ahead and put a price on that.

Research your marketplace thoroughly. Identify your target customers by creating personas. This data can be drawn from competitor research, social media data drilling, and focus groups. There is a wealth of quantitative data out there waiting for you to locate and analyse. After you’ve sifted through all that big data, it’s time to start your qualitative research. Surveys, questionnaires and focus groups will help to get you the answers you’re looking for.

Then What?

Once you’ve prepared yourself, your product, and your marketing, it’s time to launch your startup. Now the hard work begins! It takes tenacity, intelligence, creativity, and guts to make any business work. Do you have everything it takes to start a business?