People, who seek freedom in their thinking and imagination to convert their thought into reality, are prone to be a businessman. But starting a Small business can be a daunting task for both fresh graduates and 8 to 5 employers.
As for definition – Business means generative profits by creating value for people. There can be hundreds of ways of generating values for people. production service, reselling, etc. is done in exchange of monetary terms.
However, starting a Small business not only requires self-willingness but there are some other factors that deserve proper attention to make it successful. And in this article, we’ll be guiding you throughout all the things you should consider for making your dream turns into reality.
Things To Consider Before Starting A Small Business
Nature of the business:
In every business, there is something to sell. For your business also, you have to think about what you are going to sell. Will it be a product or service? Are you going to produce it or buy it from wholesalers? etc.
In order to produce any good or service, three things are needed to get merged. They are raw material, labor, and equipment. Cloths, cosmetics, electronic products, etc. are the example of manufacturers.
It is not always necessary to sell products for running a business. You can sell services to make money also. Services like event management, IT consultancy, management consultancy etc. are some of the booming examples nowadays.
Only buying and selling products is also a form of business. Retail shops, local wholesaling, online retail shops all are the type of merchandise. Production is not a part of this type of business model.
Place you are going to operate your business is basically considered the prime location. Perfect location selection results in a short delay success for almost any kind of business.
Target customers have to find the shop (If any) or selling point easily for better customer engagement and consistent profitability.
Customers are the most valuable asset for any business. Not every business has the same group of people on the list to follow up. So, according to the nature and product type of the business, customers are needed to get identified properly and specifically for long-term business success.
For starting any business you have to invest something for starting and running its operations. All of those things invested are considered capital that helps to get a return from them.
You can make a list of all the things and money needed to run your business accordingly and put emphasis on the most needed ones.
Based on the number of owners of a Small business, the formation can be set. There can be multiple or single owners of a business, who will divide their profit among themselves.
In the case of single ownership, the business is called a sole proprietorship business, whereas, more than one person owning a business makes it a partnership business. In a modern business world, a corporation has grown its effect all over the world have hundreds of owners at the same time, putting their money in business operation.
Never proceed with your personal bank account when you’re starting a business. Never! This will make you lose tracking the regular transactions and deposits. We mean, it’s tough to say which amount you spend where just by seeing the numbers.
So play safe! One more thing, go with the bank that’s most accessible and comply with your business terms.
Read more: How to Start Business Perfectly?
Following the law is another thing to consider before you take an actual step towards your business. A lot of people make the mistake of ignoring legal things. This results in a backward even when they are all set with their capital and expense requirements.
In case, you don’t wanna repeat such silly mistake, do register your business before it becomes too complex. You don’t have to get too many. BIR, Mayor, Barangay and SEC/DTI are must-haves though!
Marketing is the process of letting people know about your product or service. In order to start any business finding the ways of marketing and promoting your product is a crucial point..
Based on the type of your Small business the promotional activities are needed to be adopted. There are two types of basic marketing systems that are followed by marketers. They are – online and offline marketing.
In offline marketing, the promotional cost is quite higher than online marketing and it is considered a traditional marketing system also.
In this system, billboards, flyers, magazines etc. are used for promotion, whereas social media, blogs, websites etc. are the major media of promotion in online marketing which is competitively affordable.
You have to follow rules and regulations imposed by govt. For running any business in every country. Based on the country where you want to operate t your business there must be specific govt. compliances regarding the business process.
If your business needs a consistent exchange of products between counties, you have to follow the import-export act strictly.
On the other hand, local businesses like retail shops, clothing, merchandising need minimal rules to follow.
Running a Small business is not all about producing ro buying and selling. There is more work to do other than these like marketing, account maintenance, suppliers’ relationship, customers’ satisfaction etc. among all of these, financial and account maintenance is the job of handling all monetary transactions accordingly and precisely.
Keeping a good accountant for your Small business will ensure maximum profit analysis and minimum wastage of asset.
Through modern and digital accounting software, it is possible to calculate complex and professional accounting calculations efficiently.
You can’t run your Small business alone effectively unless you hire a group of people who are truly interested in your Small business. So, people who have appropriate knowledge of particular should be included in your team.
Not all the people interested in your business are to be recruited. Because you have to keep an eye on your expenses also. After recruiting, it’s also necessary to hold their spirit of work in your business.
They will be in need of continuous motivation and perfect leadership from their boss. Training, cross-training, recognition, communication, incentive programs, performance appraisal are some of the greatest ways of employee motivation.
Keeping them on track and gaining the best output is the prime motive of any leader, so as you.
In terms of priorities, supplies come next to the customers. Generally, people, who sell raw materials to us, are considered suppliers. Selecting suppliers can be a demanding task for a businessman because product quality depends highly on the quality of the raw materials provided by the suppliers.
Besides heaving quality, the raw material from them it’s the responsibility of the purchaser to clear due payments on time and provide the necessary time for shipment.
By following these two basic principles, both the businessman and supplier can have a long-term business relationship with them.
That’s all you should think about before you take the first step to implement your target business idea. Good luck!