In my fourth year in campus, I started an online business which didn’t pick up well as I had envisioned. My target market did reject my service offerings and pricing. I hadn’t thought them through. I picked a few lessons of what one ought to know before starting a business. I’ve shared them below in this article.
Make your concept simple
Many businesses start out simply as a simple idea or solution to an everyday problem. Nonetheless, some ideas end up turning into something complicated.
Be simple. Elaborating your idea may end up making it more expensive. Overly complicated solutions to problems may prove difficult both to market and to implement. Aim to start small then narrow your focus.
Search for ways on how you can deliver simple, high-quality product or service, then pick up from there.
Give attention to the market instead of the product
Many people starting out in business make the mistake of relying too much on their product to drive sales. They fail to take into consideration dynamics in the market that they are getting into.
Focus your business in delivering a product that your target market are willing to buy. You may come up with a blockbuster product in the world, but fail to succeed if you ignore the demands of your target market. Getting a small chunk of the market share is better than trying to invest in a market that does not exist.
Always overestimate your costs
Give yourself allowance when it comes to expenses. When you start implementing your plan, chances are high that you are going to over spend. It is good to prepare for the worst and overestimate your business’s costs. Give yourself room to breath. Do not make an assumption that your expenses will always be as planned. Always prepare for emergencies.
Build a support team
It is hard to run a business on your own. Build a team from the start.
Your team members do not necessarily have to be your business partners. They can be your peers, family, friends or mentors.
Having a team that you can fall back on in times of crisis can help you greatly.
Assess your business idea
Knowing that a market exist for your product is the first step in starting a business. Doing a thorough market research is an unskippable step in the journey of implementing your business plan.
Find out how things are done in the industry or niche that you are getting into. Assess the strengths and the weaknesses of your competitors. Dig out what drives the interest of your audience. Do not go into things blindly.
Know the committment behind starting
Before taking the first step, determine if you are prepared to start a business. Establishing and running a brand, regardless of how small it is, takes a ton of dedication. Expect your daily routine to change. Apart from putting down a heavy financial investment, you’ll also need to put down some emotional investment as well.
Loosing sleep and feeling stressed are common members in the menu of those who are engaged in business. As your business grows, you will need to invest more and more time to it. Failing to run your busines properly can damage your relationship with other people.
Generate income soonest possible
Newly established brands experience an early death because of cash flow challenges. Income is the lifeline of every business, even small ones.
Your business should start generating revenue as soon as possible. There are a number of ways to do this, either through pre-orders or deposits.
Starting a small business has never been a walk in the park. That said, there are still a number of factors that can lead to a business falling. Take note of these nuggets and work hard to get your small business out there.