A few days ago, a good friend emailed and asked what the 5 key things to consider when starting a business were. Here is what we said:
1). Do you know there is a market? Can you name, think of and profile the people or companies that will buy your product?
2) The business plan is actually for you so don't worry about what a banker needs to see and start with what you need to know and manage.
3). Know your numbers - knowing your accurate costs and also some reasonable sales targets is critical. 1000 units in month one is usually a sign of a bad plan
4) Who else is selling what you are going to sell? If the answer is no one, you probably arent looking hard enough. Rarely is a product or service so unique- even the iPod WAS competing with mp3 players initially.
5) Most plans take three times as long to get going and are two times the budget. Plan according to this even when it seems like your sure-thing, guaranteed, hit a home run plans seems fool- proof.
Starting a business is exciting and challenging. Having some guidance like a strategic business coach or mentor is critical.
2 comments:
Knowing the basics of the industry you intend to enter is a good way to start a business. And always keep in mind the dynamics of market competition when making important business decisions.
Before proceeding with any business venture, it is essential that you have a thorough understanding of the market you are entering. Important elements that you have to research include the size of the market in terms potential sales, and the number of players serving the market.
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