In startups, there are three categories of people; those who invest due to lack of alternatives, those who need an extra source of income for financial security, and those who are passionate about a specific sector.
There are a growing number of people turning to small scale business. For reasons such as monotony in jobs, high demands from the managers, retrenchment, toxic working environment, and minimal income, just to mention a few.
Admittedly, while some plan early, others face the responsibility of making quick decisions on how to earn. This leads to a series of questions making it hard to move forward.
When it comes to capital, bookkeeping is essential.
1. What do I need to know before starting a business?
a. Your business is your responsibility. From acquiring customers to retaining.
b. What are some of the regulations when investing in the selected business? Think and inquire about business and health permits, taxation regulations, and other requirements.
c. Entrepreneurs solve existing or future problems. Sometimes the target customers may have a problem. If the product or service solves the problem, the period between introduction to the market and acceptance decreases.
d. Your target customers and their demographic.
e. Your business accessibility to your customers. They need to easily reach you.
f. Entrepreneurs also need a working ethic. You may specify that you will not give items on credit and if you must, how will you ensure the debtors pay on time?
g. Your friends may not be your customers. This is not a direct indication of poor products or services, but their preferences and relationship with the current suppliers.
h. Check on your competition and what they’re up to.
i. What is your marketing strategy?
j. Which are the possible risks and how will you avoid them?
k. How will you venture into the opportunities that emerge?
2. Which is the most profitable business?
All business can be profitable or experience losses.
For a business to be profitable, soft and hard skills must be on the table and in abundance. They include current demands amongst the target population, marketing strategy, location, passion, commitment, patience, accountability, and flexibility.
Depending with the demands of the product or service, needs of the target population, their economic standards, the problem you are trying to solve and its believability, the startup can bring thousands after a few weeks.
Study the market adequately and decide on how you’ll cope with the competition.
3. How much capital do I need?
There is no standard value or range. Some start with an idea, which they sell to established firms (wholly, partially, or form partnerships), or to individuals. Some entrepreneurs who had an interest in selling clothes confessed starting with two or one piece, saved the profits, and climbed the ladder. You may not have the idea to sell or get the candidate for it, but a sense of direction saves the day. That is, taking other jobs and saving for that one dream.
4. Is entrepreneurship better than employment?
The answer depends with what you want. Each has pros and cons hence should not demonize what does not favour you.
5. Which is the most effective marketing strategy?
Do not rely on one marketing strategy because even the most recommended can fail if not maximally utilized.
Also, choose the most appropriate for the business. For example, television ads increase the audience reach, and preferred by many companies. Surprisingly, Lamborghini does not invest in the ads because they believe their customers rarely watch TV or play video games.
6. How long does it take for businesses to thrive?
There is no standard time since we interpret thriving differently. To some, it is the monetary gain and to others it is about how many people know about the product or service even before viewers and admirers become paying customers.
Nonetheless, the quality, economic capability of the customers, environmental stability, pricing, customer service, user-friendliness, availability, and marketing strategy have a huge impact on the period between launching and getting the anticipated amount of attention or money.
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