Starting a new business especially in an area you already know and love is often romanticized. Before you even think about turning your hobby into a business be aware that your hobby will turn into a job.
That is not necessarily a bad thing because you will help a lot of people in your community to in their achievements. So keep that in mind when you feel overworked.
This lists highlights points to consider even before thinking of starting a new business.
1- What type of entrepreneur are you?
This task takes a bit of soul searching and will determine not only which
type of leader and the corporate culture that your business is going to have but if you are ready to start your own business.
2- Find the answers even for the questions you don’t know you should ask?
As a businessman unlike most jobs, you will find a lot of problems that you don’t have the answers for and don’t even know who to ask. It really helps to go into business when you are already knowledgeable about the market in the area you want to venture and people that are part of it (network). One solution is to find a mentor. A mentor will guide you through the times you are feeling lost and found a business problem you cant get over, but most importantly even when you have failed to realize that a certain aspect of your business is a problem. This is part of finding the unknown unknowns.
Another way is…
3- Find new paths:
As a starting entrepreneur, you are going into an existing market with big players, if you cant offer a unique product or service that sets you apart from the rest of the market in any way, the days of your business are numbered from the start. Find a unique selling point. This entails finding a differential that consumers are willing to pay for or a competitive price with a similar to a better quality than the currently existing products and services being offered in the market.
4- Your audience:
As a small business, you should know your customers to a deep level. Big business is able to collect large amounts of data through research but they often don’t get to the qualitative side of information on what that person is really like. As a small business owner, you have the opportunity of engaging a shaping your business quickly to what your audience desires. So you should know the people who are soon to be your customers to a deep level.
5- A strategy:
If you know that people that will be your audience than you should know where they are on the internet, what platforms they use. You should also know how they behave On and off the internet. Once you have this you can start to create a strategy taking account On to Offline behavior and how that affects their buying process.
6- You are going to need to invest money out of your pocket:
Take into account that you need a realistic plan and expenses that need to be used before attaining break-even, that is when your profits surpass the overall expenses you have had with your business (variable and fixed). Taking into account the present value of money and degradation of the value of owned assets if possible.
7 – The business name:
The business name is almost set in stone, this because, you will spend quite a bit of rebranding if you wish to change it. The brand name and logo should communicate something to your audience at first sight and draw them in. In the long-term you brand should communicate something instantly to your audience, what you are doing with branding is associating the brand name and logo to the products and services you produce.
8- Your partners:
Establish a list of interested parties, people that can help you with the business and people that have an audience similar to the ones of your ideal persona. The persona is your ideal customer and it may be more than one persona.
Even if you have enough money to start and set your business afloat you need to think about funding. Once your business is running you will find that people will try to copy your business model and make money off it, this means that you should grow fast enough to grab the market share that recent to come copycats wish to acquire
10 – Licensing and legal issues:
This is probably one of the least sexy aspects of starting your business especially for idealists but here we go again, you have to treat this as your job now. Once you have enough money you can outsource aspects like this and focus on what your business truly about. Consulting a legal counselor can save you a lot of money and headaches in the future, you need to know if your business is not infringing any laws that might result in fines.