Try not to be dissuaded from starting your new business or launching a new product by gloomy economic forecasts. If you have taken some basic steps, I believe your business will thrive regardless of what the forecasters say.
In fact, this could be the best time to strike out on your own. Your business, as a small business, can provide products or services with a lot less overhead than the older, more established companies – and make more profit than the larger companies, some of whom are struggling to turn a profit right now.
Start-up costs might even be a little less now compared to the last few years. Because a lot of companies have closed their doors, vacancy rates are climbing and rents in some areas may be less expensive.
Larger companies are finding they have to lay off workers to meet their profit levels. A small business is already lean and can run efficiently with fewer people.
Here are what I feel are the basic elements of starting a new business or launching a new product that you must take care of.
First, have experience in the field you want to service. This is important, too, if your product is geared toward a certain market. You must have experience to share with others in the same field. While I didn’t always know the kinds of products I would be working on, I had many years’ experience in product development after working for different companies.
Next, you must have done market research to prove that the product or service you are offering is needed and will appeal to the consumers in your target market.
Know your competition – and don’t be fooled into thinking that you don’t have any. Because you have a product that fills a need in a certain market or will provide service to a niche market, you still have competition and must recognize it.
Finally, you have prepared a solid business plan or at least have a good draft of one ready. From your business plan, you have a good idea of when your business or product will turn a profit – and you are able to demonstrate how this will happen through well-prepared and well-thought-out financials.
If you have done these important steps then you are ready regardless of the economic climate in your area.
This all sounds like a lot of work, but most people who decide to go into their own businesses have already gone through these steps at least in an informal way. They have experience because they worked in a particular field, they found a niche market, did some preliminary research, talked to people who would be using the product or service and sat down to draft a business plan. This is where some people are scared off. They feel they won’t be able to make it – especially when all the news right now is bad.
There are always opportunities for people who are well prepared and willing to take risks. Seize the opportunity! It is the beginning of your future.
Article – Copyright 2001 Stanley I. Mason. Syndicated by Paradigm News, Inc.