Wondering how to start a new business? Then keep these seven aspects of business in mind when starting your own business. This will dramatically improve your chances of success.
The market is the community to which you sell your products or services. This may mean geographical community or a group that has shared interests and needs. Therefore, it is critical to do market research on product demand before starting a business.
Key questions to ask yourself:
- Is there an existing market for your products?
- If so, where is it?
- Do you have a buyer persona (a detailed description of your target market)? If not, read MoreBusiness.com’s tips on how to create a buyer persona.
During your market research, you will have to make sure that you can produce enough products or services for sale to make a decent profit to keep the business running and take care of your living expenses.
Every small business has to have an owner or owners, people who start a business and run it in its first stage.
You will need to determine if you are going to run a one-person business or if you are going to take on a partner.
If you decide to have others join you in the business, you’ll need to make sure that everyone has the necessary skills and expertise to operate their part of the business successfully.
3. Customers and Clients
Every new small business has to have customers or clients to survive. This is one of the top business aspects to consider.
In the beginning, you will need to find out how your target market feels about the products and services you are offering.
You will also need to determine how they will be able to purchase your products or service and how you’ll be able to meet their growing demands.
A marketing plan goes a long way in helping you chart out your customer acquisition strategy. Download MoreBusiness.com’s free marketing plan example (Microsoft Word document) so that you can see what a good marketing plan contains and make edits to create your own.
4. Start Up Capital
Of all the aspects of business, this is also one of the most important. The majority of small businesses need money to get started, though a few may already have things in place to get going without needing to raise additional capital.
Money is often the #1 reason most business fail, so you should ask yourself the following questions:
- How much do you need and why?
- What do you need it for?
- Where can you get that money from?
- Can you lower your capital needs without certain things without harming your ability to start your business?
5. Facilities and Location
You will need a place from which to run your business. Running your business from home can save you a lot of money, if you can pull it off.
However, if you need an office with storage for products or space for equipment, products and staff, you may need to raise money to lease a physical location.
Depending on where you live, you might have access to shared work spaces. These are offices that allow you to rent a desk, a room or just a mailbox so that you have a physical address for your business. You can usually rent a conference room as needed at these locations, too.
Read our location analysis for business for suggestions on how to pick the right spot for your business.
6. Permits and Licenses
No matter what type of business you run, whether from home or another facility, you have to have a business license in accordance with the laws in your town, state or county.
You may also need special permits if you are dealing with food or dangerous products. You can contact your local city hall for their specific guidelines and costs.
7. Ownership Type
You may choose to run a one person operation or you may need partners. Read our post on the different types of corporations you can set up so that you pick the right structure for your business.
- Are you able to handle all aspects of business yourself?
- If you have partners, are they also able to handle all business aspects?
- Who is liable for legal repercussions?
- Do you want to pay dividends to shareholders (even if that means just paying yourself)?
- Will you have shareholders in different countries (this affects which type of business entity you set up)?
Each state, province, town, city and country has their own laws. It is important to research the rules, establish legal ownership, seek legal advice and register your business type.
Starting your own business takes lots of hard work and planning. By knowing each of the seven aspects of business above, you will give your new company the best chance of succeeding right out of the gate.