Business Activity | 10 Things to Consider Before Starting a Business by @steemtopus

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Starting your own business can be one of the most rewarding experiences you’ll ever have in your life, but it can also be one of the most stressful and intimidating endeavors you’ll ever take on. From legal issues to financial concerns to the actual logistics of how you’re going to go about doing what you want to do, there are more questions than answers when you decide to become an entrepreneur. To make sure that your first venture into the world of business is a success, consider these 10 things before starting a business.

1) What type of business am I going to start?

There are many different types of businesses out there, and even within those categories, you have choices to make about how you’re going to structure your company. There are many factors that go into choosing what kind of business is right for you, including your interests and experience, as well as where you plan on getting financing. Ultimately though, it helps if you pick something that aligns with your values. For example, would you rather run a successful business but work longer hours or be able to spend more time with family? To figure out what type of business is right for you requires research. You can start by asking yourself some questions: What do I want my business to look like? Do I want employees or will I work alone? What kinds of customers do I want to serve? Where will they come from (i.e., local, national, international)? How much money am I willing to invest in my business at first and over time? How much money do I need to make each month in order to live comfortably while working in my chosen field? Once you know what kind of business is right for you, then comes the fun part—figuring out which one it should be! One way to think about narrowing down your options is to ask yourself these questions: What industry does my business fit into? Who are its competitors? Are there similar companies already operating in my area? If so, why haven't they been successful here yet? Does anyone care enough about what I'm doing to pay me for it (even if I'm not charging them anything up front)? If you've answered yes to all of these questions, then you're ready to move forward with starting a business. If not, keep researching until you find an idea that really speaks to you.

2) What am I good at?

To determine if starting your own business is right for you, ask yourself what you're good at and what you enjoy doing. When deciding whether or not to start your own business, remember that there are many other careers out there besides being an entrepreneur. If running your own business isn't something that you feel passionate about, it will be hard for you to be successful in it. It's also important that you choose something in which your skills and experience can help make a difference. The truth is that most businesses fail because of poor planning rather than poor execution. So before diving into entrepreneurship, think carefully about what you have to offer as a potential employer and take time to plan your business effectively from day one.
What am I passionate about?: Passion has been called the fire within for good reason; when passion burns within us, we are energized and motivated to accomplish great things. But passion alone doesn't ensure success; passion must be balanced with intelligence and practicality (more on these qualities later). For example, I may love playing tennis but I don't want to become a professional tennis player because my passion doesn't outweigh my lack of skill or training in that area.

3) Where will my customers come from?

Starting your own business is exciting and you want to get going as soon as possible. While it's important not to rush into things, there's nothing wrong with spending some time doing research and planning ahead. One thing that can be helpful at this stage is working out where your customers will come from – how are you going to reach them? Will they come through referrals or search engines or advertising? What exactly are you selling, anyway? You might have had an idea in mind but it's worth spending some time exploring whether there really is a market for what you plan on doing. If it turns out that people just aren't interested in what you're offering, it's best if you find that out sooner rather than later so you can reassess your plan. The 5 most common reasons businesses fail: There are many reasons why businesses fail, but according to statistics these five top all of them: 1) Lack of demand for product or service; 2) Lack of planning and/or poor management; 3) Competition; 4) Inadequate financing; 5) Poor location. If you've already got a good grasp on these areas then great! But even if everything looks good right now, don't forget that circumstances change over time.

4) How much will it cost me?

While starting out on your own, you’ll probably be spending a lot of time, money and effort on getting things up and running. Therefore, it is important to consider how much starting up your own business will cost you. In addition to expenses associated with launching your venture—like office equipment, marketing materials and professional services—be sure you think about how much personal financial risk you are taking on by founding your company. This means calculating how much money you’ll need saved before launch day and figuring out where it will come from—savings? Loans? Outside investment? You should also consider what kind of salary you want or can afford. The more financially secure you are, the better off your business will be in its early days (and months). It’s worth noting that if you plan to bootstrap your startup, don't underestimate how expensive it might be for some period of time.

5) How long until I break even?

This might seem like an overly simplistic question, but if you don’t know how long it will take you to break even, there’s no way of knowing if your business will be successful. Once you have break-even figured out, then you can think about profit and whether or not your business will be able to sustain itself without regular injections of cash from outside sources. Knowing how long it will take you to break even is important for any type of business, but it’s particularly essential for businesses that sell products: If it takes too long for your product or service go from cost price to profitability, then your chances of success are greatly reduced. For example, let’s say you want to start a shoe repair shop. You buy all your supplies upfront and decide on prices based on what people in your area currently pay for repairs. You set up shop and get busy repairing shoes—but after three months of steady work, you realize that you still haven’t broken even! What now? It may be time to rethink things or change your pricing structure so that customers are more likely to come back for more repairs in future months (and years). The point is: To avoid getting stuck with dead inventory (or worse yet, having to close up shop), figure out how long it will take before each item sold turns into profit.

6) How will I promote my business?

You may have a plan in place for how you'll promote your business once it's up and running, but without first figuring out how you'll get customers and clients on board, there's no point in developing marketing materials or sending out press releases. Of course, it's hard to know exactly what kind of promotion strategy you'll need ahead of time. That said, here are a few questions to ask yourself: How do I reach my ideal customer? What’s my budget for marketing and advertising? Will I need help promoting my business? Am I comfortable with social media? What kinds of promotions work best for my industry? If you can't answer these questions yet, don't worry. The important thing is that you're asking them now rather than when you're knee-deep in start-up mode. Your answers will change as your business grows and evolves—and that's OK! As long as you remain flexible, willing to adapt and always aware of what works (and doesn't), your success is all but guaranteed.

7) What risks am I willing to take?

One of the most important things you need to know before starting your business is whether or not you're willing and able to take on specific kinds of risk. There are four types of risks that every entrepreneur takes: economic, personal, opportunity and lifestyle. Some kinds of businesses carry more or different kinds of risk than others, but it's important for you to be as clear about what kinds of risks you're willing to take before starting a business. Once again, creating a business plan helps clarify your thinking on these issues; it's also worth consulting an advisor who can help identify these risks and ask hard questions. You may find yourself reconsidering your original idea once you've thought through all these factors. If so, don't worry—it just means you've done your homework and have a better sense of what kind of business will work best for you. If not, congratulations! You've identified a great idea worth pursuing!

8) Am I ready for this commitment?

As new business owners, we’re often so focused on getting our idea off of paper and into reality that we rush past some crucial questions that determine whether or not starting our business is actually right for us. One question I hear all too often is, I have an idea and I want to start my own business. What do I do? My answer: I don’t know—do you really want to start your own business? Why not join someone else’s team as an employee first? Ultimately, being a great entrepreneur requires immense passion and motivation—something you won't always have if you haven't started your own company before. That's why it's important to ask yourself, am I ready for this commitment? If you're still unsure, maybe starting your own business isn't for you just yet. If you've already answered yes to these questions, then congratulations! You're now ready to take action. The next step is taking time to think through what success looks like and how much money you'll need in order to achieve it.

9) Am I prepared for success (or failure)?

Starting and running a business is not for everyone. Can you handle it? Will you take it personally if your business fails? Does your partner understand that your time will be limited once you launch? Do you have kids, or are you willing to relocate (or work from home) so that your family can stay in one place during those first years? Do you know what sacrifices you'll have to make and are they acceptable to you and those around you? Are there ways in which success would be really good for everyone—not just for yourself—and do those things matter enough for everyone involved? If you're starting a business with others, how well do you get along with them? How much of your identity is tied up in having a successful business? If you're an entrepreneur who has already been through some hard times, how did you get through them emotionally and financially? What made it easier on you than someone else might find it to be? What were some of your biggest mistakes and what did you learn from them? If you had it all to do over again, what would you change? When was your last vacation and when's your next one? Have you ever taken a big risk before? If so, how did it turn out for you? Have you ever failed at something important before? Have you ever started a new business before? Was that experience positive or negative and why? What kinds of people have I worked with in my career and am I still friends with any of them now (or could I start new friendships)? Is my industry changing quickly right now or is it stable/slowly evolving over time--and does that affect my ability to succeed as an entrepreneur right now? Am I passionate about my idea? If not, why am I doing it? Am I too passionate about my idea? If so, how can I balance that passion with rationality and objectivity? Am I prepared to put everything into making my business successful but also prepared for failure should it happen (and knowing that sometimes failing means going back to square one).

10) Is now the right time for me?

So before we go any further, ask yourself: Is now really a good time for me to start my own business?If you’re considering starting your own business, there are many factors that can influence whether or not now is actually a good time for you. Many people, in fact, know they want to start their own business but never actually do it because they don’t think they have all of their ducks in a row. But it’s important to realize that there is no perfect time—there is only now. Don’t let self-doubt or uncertainty hold you back from making progress on what matters most to you. If you want something badly enough, and if it’s going to make your life better and happier, then why wait? As Nike says: Just do it!

Conclusions

In short, there’s no getting around it: starting your own business is tough. But it can also be exhilarating and rewarding—and one of your best chances at building something great. Remember these 10 considerations when you start planning your new venture, and you’ll be more likely to succeed.

Business name:	Octopus
Owner's name:	@steemtopus
Business address:	Ilorin, Kwara, Nigeria.
About us:	link to presentation

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