Start-ups are the lifeblood of the modern economy. New entrepreneurs and small-medium enterprises are often trailblazers within their industry, identifying market gaps and pushing innovation with new products and services that directly compete with institutional giants.
You might think yourself something of an entrepreneur, and you might have a disruptive business idea of your own – but getting started is a mammoth task, and a scary one to boot. If you want to start a business, ask yourself the following questions:
Are You Ready to Start a Business?
First and foremost – and before you even begin to touch the specifics of your business idea – you need to ask yourself if you are ready to start a business at all. Helming a start-up is an incredibly large commitment, especially if your plan involves the hiring of staff.
There are tax and funding implications, and significant time demands inherent to creating a new company from scratch. Without the right preparation, and without being completely sure of your decision to begin, your idea could fail before it ever leaves the ground.
Is Your Business Idea Viable?
Next, you need to ask yourself some ruthless questions about the viability of your business proposal. A good idea is just that: a good idea. Sometimes these ideas do not translate well into a tangible product or service, at least not without the right approach and execution. Good ideas can often demonstrate themselves to be prohibitively expensive, and you may find your profit margins narrowing as you get closer to a proper launch.
As such, you should test your ideas and models vigorously. Ask other professionals in your industry for their input, and mock-pitch your business to associates to get a clearer, external view of your business. You should also consider your business plan in the context of your industry; does it stand apart from similar products, or does it offer any form of competition?
Do You Have Funding?
Unfortunately, the proper launch of a new start-up often depends largely on one thing: money. You will need funding to build the infrastructure necessary to start your business, be they retail locations, factory time or even logistical staff.
There are a number of ways you can secure funding for your start-up, but it falls on you to find the best solution for your individual circumstances. You could use property you own as collateral for an asset-backed business loan, or you could utilise investor pools. You could seek angel investment from an industry leader, or you could take out a personal loan to swallow initial costs.
How Robust is Your Business Plan?
Whether you’re looking to secure funding, impress industry leaders, or simply provide yourself with a solid framework to build your business, your business plan needs to be airtight. Does your business plan include both a one-year and five-year plan? Are your business goals clearly defined, with tangible steps to completing them?