There are a lot of things to think about, even before you start.

Running a business isn’t always easy, especially these days. There will be a lot to think about and even more to do. In this 3 part series we provide a useful guide to anyone who wants to start and operate a successful business.

In this first of 3 parts we look at what you need to be thinking about when Starting your business, and then we look at Marketing.

Starting

Clarity

Before you go anywhere near a customer, make sure you know why you are intending to work for yourself. Be clear about what it is you want to get out of your business. Be goal orientated and have clear objectives. Set deadlines for your business, decide how long you intend to run your business for, and know your exit strategy.

The Entrepreneur

Statistics say that working for yourself only suits 5% of the population and that 95% are more suited to working as employees. Running a business is long hours and continuous processes, month after month. A self-employed individual works a minimum of 60 hours a week on average. Freedom, not money, should be the primary motivator.

Which One?

Good business people can fail in one business and yet succeeded in another; e.g. product orientated people with skills in sourcing, merchandising and an understanding of the margin matrix should consider retail. For others a practice based, clinical or professional business is more appropriate. Choosing the right business really can make all the difference.

Marketing

Customers

There is nothing more important than knowing your customer; not knowing them is the number one reason why businesses fail. Know who they are, where they are, how much they have to spend and what will make them want to buy your product or service. Ensure the market is concentrated enough and that your marketing will reach sufficient numbers to return a large enough total cash gross margin.

Research

Ensure before you get close to starting your business that your potential customers will love your product or service as much as you do. Good market research can save a ratio of 10:1 of any money spent. Do your homework, talk to your bank, your accountant, friends, other businesses. Develop a suspicious attitude and look for a fatal flaw.

The 5 P’s

Let’s have a quick look at them. Product (make it desirable), Price (affordable and profitable), Place (available in the right sales-channels), Promotion (reaching enough people), Positioning (ensure the identity of the product / service, relative to the identity of competing products / services, is positive in the collective minds of the target market).

Summary

If we get these 6 things right then we will be well on our way to starting a successful business. Most entrepreneurs plan for 6 months to a year before they start a new venture. In the next part we look at Planning and Operations which is where things really start to hot up as we begin to trade.