starting your own startup

A lot of people with great ideas venture into the world of entrepreneurship with the motive of making profits. However, setting up your own business isn’t an easy task as you need to look after a lot of things which might seem very new to you.

While contemplating whether or not to start your own business, ask yourself the following questions:

1. Why should I introduce this product into a market?

If you cannot answer this question successfully, it clearly means that your product is either not new or not enough to suffice the current problems of society. If you can answer this question without hesitating, go ahead and answer the rest as well.

2. How will my product/service help the society or any other stakeholders?

This is a crucial question which needs to be answered because the whole point of entrepreneurship is that you spot a problem and create a new solution. You need to make sure that your product/service affects your stakeholders for the better.

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3. What is the end goal of your business?

If you don’t have a mission and vision for your business, the whole thing could result in a failure. You need to have a goal besides profits which you want to achieve through the business you are setting up.

4. Which groups you need to target as your audience?

You can’t go around assuming that all people are your customers. You need to identify a proper target group for your product and focus on them more than other groups. You could also have secondary and tertiary target groups.

5. When are you likely to break even?

Break-even is a point where the total revenue earned is equal to the total cost incurred. This question is crucial because most businesses take about 6 quarters to break even. Also, this is the first question your potential investors will ask you because no one likes investing in a business which isn’t profitable.

6 What is your product’s USP?

USP is a unique selling proposition and it distinguishes your product from other competing products already available in the market. If you can clearly point out what is unique in your product and why it will work with your target group, go ahead with your idea.

7. What convinces you that customers are ready for your product?

Your product might be solving a problem and unique, but customers still might not want to buy it. In that case, you need to speak to some members of your target group and do basic research to see if introducing your idea into the market makes sense.

8. Who are your competitors?

As a businessman, you should be aware of your competition in the market and learn from their strong points. Based on the present competition, you can mould your product or service to make it look more appealing to your target audience.

9. How and what will you price your product?

Pricing is a very sensitive and important part of a business. You need to identify which strategy you would use for maximum market share. You could opt for sales maximisation or profit maximisation depending upon the nature of your product.

10. What channels of sales and distribution would you employ?

You also need to figure out the medium of sales and distribution you would want to employ for your product. It could be an e-commerce based product/service or sold through personal selling. You also need to figure out where your product would be available.

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11. How much capital would you need to set up the business initially?

You need to be sure about how much capital you would require to set up your business in terms of rent, labour, raw material etc. Calculate the cost of fixed and variable inputs for a better understanding.

12. What are the risks you might be facing?

Every business has its own risks. You need to figure out the risks of your own business and try and minimise them.

A lot of entrepreneurs are trapped in 9-5 jobs and need a change of job for professional satisfaction. Some may have the required expertise but lack in experience. For such aspiring entrepreneurs, it is essential to weigh certain pros and cons before venturing into a particular market.

Here are four points to consider before you decide to start your own venture:

1. Learn to distinguish between what you can do and what you think you can

This is a very important consideration that entrepreneurs need to take into account before starting off. One shouldn’t be too optimistic about the different work domains an entrepreneur has to work upon.

For instance, an entrepreneur might be very good at marketing but social media might not be his forte. For stuff, one is not very proficient at; an entrepreneur should consider delegating for maximum results. When you have a fair idea of what your business should be like, you need to also make a list of the domains that you or your company needs to work upon- marketing, sales, social media, content etc. The tasks you know you’ll be good at should be done by you where as the others should be given out to people better in a particular domain.

2. Be confident about your idea and skills

An entrepreneur needs to be confident and have belief in his idea because he wouldn’t be able to convince customers or VCs regarding the venture otherwise. Also, if you as an entrepreneur believe that you’re good with marketing and pitching, you should be absolutely confident about the same.

Self-confidence is the key to succeeding in the business line. Without self-confidence, it is very easy to become a prey to criticisms and feel disheartened.

While you believe in yourself, you are able to inspire others around as well which leads to high levels of motivation within an organisation.

3. Research as much as you can

Researching about your own venture not only makes you aware but also gives you the power to take decisions more accurately. This step is crucial for any new venture because without required information, a business is doomed to failure. An entrepreneur needs to research about the market he wants to venture into and the target audience as well. This will help him reach out to his target better and maximise sales in the long run.

An entrepreneur also needs to be very sure about the start-up costs he is bound to incur from the venture he is willing to set up and have a fair idea of the capital he is going to require.

For instance, if a guy wants to open a shop, he should be aware of the rent of a shop in a particular locality and also the costs he would have to invest in the inventory. This will help him get a clear perspective and deal with stuff better.

4. Enjoy the whole process of starting a venture

Instead of worrying about the profits you’ll be making and the sales, you should enjoy what you’re doing because you chose to do it. All the time you decide to dedicate to your business, should be fruitful and worth it. Some days will definitely be more hectic than others, but on those days you should remember the sole reason why you started a venture. Also, be honest and dedicated because you as an individual are expected to spend a lot of time and effort on it.

If these considerations are met and you want to go ahead with your venture, we wish you all the best!

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Tag: starting your own startup

12 questions you need to ask yourself before starting your own business

4 essential considerations one needs to think of before setting up a venture

1. Learn to distinguish between what you can do and what you think you can

2. Be confident about your idea and skills

3. Research as much as you can

4. Enjoy the whole process of starting a venture