Everybody desires to be financially independent. Since it is the begining of a new year and decade, many have set financial goals for the year and the decade. It is not uncommon if a resolution that touches on financial independence feautures in most of the new year resolution lists. You have made the decision to be financially independent. Are you ready for the process? Are you ready to start that company that you have been dreaming for years? Before you give answers to these questions, you may want to know factors to consider before setting up your company.
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Industry knowledge and skill
A good question to ask yourself would be ‘What do I know about this industry and what are the skills I should have?’
Be equipped with sufficient knowledge about the type of business or industry you intend to embark on. Do a survey of the top business trends in that industry and be ready to have the requisite skills to carry out the business.
In business, it is costly to learn while on the job. You may end up losing your starting capital.
Level of competition
A good question ask yourself would be ‘How competitive will my startup be?’.
Do an evaluation of the level of business competition in your market. This will help you assess the opportunities and threats your competition presents. Identify your competitors and come up with strategies to stay in the game.
A question to ask yourself would be ‘what are the risks involved in starting my new business?’
Conduct a thorough study and evaluation of the risks involved in the type of business you are interested in. Once you have identified potential risks, come up with strategies to counter them.
A question to ask yourself would be ‘How much capital do I need?’
Before starting your business, consider the amount of capital that is needed. Determine the minimun capital required to start the business. Make sure you are able to afford the start up. Nonetheless, leaning towards the minimum capital requirement is unsafe as there is a risk of falling below the minimum, which would diminish yoyr business.
A question to ask yourself would be ‘Will my startup generate good revenue?’
The primary objective of all businesses is to generate revenue, hence it is a must to consider the level of profit before embarking on a new business venture.
Take time to analyse projected income and expenses to help you assess the financial health of the company you are setting up. Without profitability, your business is doomed to fail in the long run.
A question to ask yourself would be ‘Who are my potential customers/clients?’
Loyal customers make businesses flourish. Without customers, a business is at a risk of collapsing.
Identify your potential customers and always keep them interested in your business. Keep finding strategies to improve your product or services to meet the high demands.
A question to ask yourself would be ‘Where is the best place to put up my new business?’
Consider the location of your business. Let it be a location where your target customer congregate.
Check your demographics, traffic pattern information, lifestyle data and competitive analyses.
Channels of distribution
A question to ask yourself would be ‘How do I reach out to my potential customers/clients?’
To make sure your products reach consumers, choose an effective platform of distribution for your business.
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A question to ask yourself would be ‘How does my business comply with government policy?’
Have a look at the government policy that touch on the business before you embark on it. Adhere to the rules and regulations of the policies or you might face a fine, with your business plummeting.
A question to ask yourself would be ‘How will my business succeed in future?’
Plan for the future prospects of the business. This will make you avoid collpase or closing down of your business.
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