In this day and age, it has never been easier to start a business. With tools like Google Apps, Kickstarter, Shopify, and WordPress, there are resources available for entrepreneurs of all types.
In the past three years alone, over 100 Mobile App companies have emerged in New York City.
Unfortunately, though, not all of these businesses make it to their 5-year anniversary – due to lack of experience, lack of preparation, or a large number of other reasons.
Before you even begin thinking about your new business plan, there are 10 things that you need to consider first:
1) What Makes me Qualified to do This?
Think about what makes you uniquely qualified as an expert in your field. If you don’t have an answer to this question, now is the time to make yourself one. For example: Don’t tell me that you’ve always loved cheese and know everything there is to know about it – I’m not buying it!
Instead, maybe say something like “As a person with 10 years of experience in the food industry, specializing in Italian cuisine, I believe that I am uniquely qualified as an expert on all things cheese.”
2) Am I Passionate About My Product?
You need to keep in mind that launching a business will require countless hours of dedication and hard work – so if you’re not willing to pour every fiber of your being into making your company successful, then this may not be the right road for you.
You need to be able to ask yourself “Am I willing to give everything that I have in order for this company to succeed?” If the answer is no, then maybe entrepreneurship isn’t your true calling.
Before moving forward you might want to know about pro rata investment as it is an important term in the world of investment. Pro-rata investment basically gives an investor the right to invest in future rounds. This is so that they can maintain their percentage ownership of the company.
3) What Problem am I Trying to Solve?
The first thing a business owner needs to think about is how they will solve an identified problem. As a prospective entrepreneur, you need to learn how to describe a problem so clearly and concisely that your reader immediately realizes its importance, followed by an understanding of how exactly you intend on solving it.
For example: If there is anything that we can all agree on, it’s that working from home has its perks! However, without proper organization, it is all too easy to let clutter accumulate.
By creating ” The Office in a Closet “, you will help to organize the home offices of passionate entrepreneurs, keeping homes clear, clean, and clutter-free!
4) Who are My Competitors?
Depending on your field, there may be more than one company that’s solving the problem that you intend on fixing – which means that you have some competition. In order to stay ahead of your rivals, I suggest checking out what they’re doing so that you can find your niche within the market.
If their business model works well, find an in which you can differentiate yourself from them. For example: If a couple of companies in New York City have already launched a Mobile App for doctors, then maybe yours should be tailored towards schools.
5) Have I Identified My Target Audience?
As a company owner, you need to start thinking about who your audience is as soon as possible. You can’t just sell to anyone, you actually need to find those specific people that will benefit the most from what you have to offer! For example:
If you own a company that helps people quit smoking, don’t try and market it towards business professionals – they couldn’t care less! Instead, pitch it towards parents of children under the age of five – because they’ll take anything that might help their kids live a longer life!
6) What’s My Message?
The way in which you communicate with your customers is as important as what you’re saying! Your message should be clear, concise, and memorable. For example, It’s pretty simple – if you want to make more money this year, then buy our product!
7) How will I Reach My Audience?
With the advent of social media, it has become easier than ever for businesses to spread their message across the globe. As a company owner, you need to think about how exactly you intend on reaching your target audience before launch day.
For example: If you own a small business that specializes in Italian cuisine, maybe Facebook ads would work best for you since they give off an ” Underdog ” vibe that’ll appeal to your specific demographic.
8) How Much will It Cost to Get Started?
It’s important to have a realistic idea of how much money you need for your business. After all, there’s no point in starting a company that’ll fail due to a lack of funds!
Before even thinking about pitching your ideas to investors, set aside a decent amount of cash that will allow you to produce whatever it is that you’re selling while simultaneously ensuring profit after launch.
For example: If you’re going into the clothing business, then maybe $25k would be enough for your startup costs, which include buying fabric and labor. If you are an investor do not forget to check out these investing tips.
You May Read: Fund Your Start-up Business
9) How should I Price My Product?
In order for your business to succeed, you need to establish a price point that’s at least 15% less than your competitors. If you can’t beat them, join them! However, don’t be afraid to put a small premium on your product – it’ll go a long way in terms of helping to establish a reputation for quality.
For example: If you’re going into the candy business, then why not undercut the competition by 5% and hope that your customers will see your company as more trustworthy because of that?
10) Do I Have What It Takes?
I know that this is a lot of information to take in all at once, but before you actually launch your business, make sure that YOU are ready for what’s coming next ! Have you ever been responsible for managing employees?
Have you ever worked a 9 to 5 before? If not, then maybe it isn’t the best idea for you to start your company – because running a business requires a lot of responsibility!
For example: If you have no idea what it’s like to be an actual CEO, then I’d suggest that you avoid launching a Tech Startup