Starting a business is one of the hardest thing a person can do, there are many factors one need to be consciously aware of before diving into the business world. It is a place filled with opportunities to sale a product, offer value, make money and become financially independent. Statistics has it that 90 percent of startups die within the first five years of being in business.
In other to save yourself from failing there are thing you have to consider before kicking off. Coupled with the dramatic change of the business landsacpe from the effects of the covid 19 virus a person wanting to start a business needs proper planning.
The first thing that should be considered when starting a business is to determine the niche you want to enter. Lets say for the oil industry they are the drilling companies, transporting companies, vessel companies all in the same industry. It is a very important factor to determine the niche which is best suitable for you in any industry.
2. Skills and Knowledge
Many businesses fail because the founders did not have the skills and knowledge to manage the business. An essential step to take once you have determined the niche you want to be in is to acquire the skill set and knowledge needed to run the business.
If you do not do this the business has already failed even before you start. You cannot afford to waste resource, although they are many things you will learn in the cause of running an actual business but you need to first fortify yourself with the basics.
If the individual is not able to find suitable training then there are many other options available. One of these options is to choose an online school or college.There are many benefits to choosing this option rather than going to a traditional school. For example, there is no need to commute. With this option, the person will be able to study as well as do business or a home-based job.
All of the training in the world is not going to help if the person is not able to perform the required tasks. The person needs to be able to think in several different ways. They must be able to analyze various data and make appropriate decisions.
If the person does not have these skills then it is impossible to succeed. If they are unable to learn these skills then they could struggle in the business. Therefore, the very first step is to get some training and if this training fails to teach them these skills then the person will need to find something else.
3. Minimum Capital
You do not need to have all the money and assets in the world to start a business but you need to make on field valuations and know the minimum capital you need for the business to kick off. Many people make the mistake of entering and industry without the minimum capital needed for the business to thrive. If you do this the chances that you will lose the already injected capital is high.
The proper thing is to grow the capital you already have using already established schemes or businesses that can bring you returns. Then when you now have the capital you can dive in it. This is considering that the business landscape is not predictable;e so you need to have a good asset base to be able to survive and stay in business.
4. Understand the Risks Involved
Every business is risky, it is your duty to do due diligence and understand the risks involved in the business. Every business has its general and peculiar challenges. If you know the challenges you will be better equipped to handle them when they arise. When challenges arise in business know that they are persons that has been through the same problem. Seek for industry advice and apply them considering the uniqueness of your own challenges.
5. Proper Market Research
Never enter a business without doing market research to know if actually there is a need for your product or services in the business location. It is alrady a golden rule that if you want to be succesful in business you need to focus on peoples needs. Do not depend on guese work or assumptions, go out there and do proper market analysis for your business.
The business landscape is such a tough one, no matter any business you enter there is competition already waiting for you on the onset or later. So you have to be duly prepared to navigate this tough landscape. Do not start a business without preparation. Do proper analysis and research and at the same time equip yourself with the skills needed to make the business a success.