Entrepreneurs are those who seek freedom in their thinking and imagination to bring their ideas to life. However, starting a small business can be a daunting task, both for fresh graduates and for 8 to 5 employees.
Business is defined as generating profits by creating value for people. It is possible to generate value for people in hundreds of different ways. In exchange for monetary terms, production services, reselling, etc., are provided. Below you’ll find a list of the most important things to consider before starting a business.
1. Amount of capital
To start and run any business, you must invest something. The investment of all those things is considered capital that helps to generate a return. Make a list of all the things and money you will need to run your business and place emphasis on those that are most important.
2. The nature of the business
There is always something to sell in a business. It is also essential for your business to consider what you will sell. Is it going to be a product or a service? Will you produce it or buy it from wholesalers? And so on.
3. The registration process
You should also consider following the law before starting your business. Legal things are often ignored by people. Even with their capital and expense requirements all set, they still fall backward.
Register your business before it becomes too complicated if you don’t want to repeat such a silly mistake. It’s not necessary to get too many. SEC/DTI are must-haves, along with BIR, Mayor, Barangay, and Barangay Council!
A prime location is a place where your business will be located. For almost any type of business, perfect location selection results in a short delay of success. In order to ensure consistent profitability and better customer engagement, the shop or selling point must be easily accessible to the target audience.
5. The manufacturing industry
For any good or service to be produced, three things must be merged. The three components are raw materials, labor, and equipment. Manufacturers include those who make clothes, cosmetics, electronics, etc.
6. The target market
Any business’s most valuable asset is its customers. Business lists do not always have the same people on them. For long-term business success, customers need to be identified appropriately and specifically based on the nature and product type of the business.
7. Providing services
Running a business does not always require selling products. It is also possible to earn money by selling services. A few examples of booming services today are event management, IT consultancy, management consultancy, etc.
8. The retail industry
Business is not limited to buying and selling products. There are three types of merchandise: retail shops, local wholesalers, and online retailers. A business model like this does not include production.
9. Keeping a bank account
When starting a business, never use your personal bank account. You will lose track of regular transactions and deposits if you do this. It’s hard to tell just by looking at the numbers what you spend where. Take precautions! Furthermore, choose the bank that complies with your business terms and is most accessible.
10. Establishment of a company
The formation of a small business can be determined based on how many owners there are. Profits from a business can be divided among multiple or single owners.
Sole proprietorships are businesses owned by one person, while partnerships are businesses owned by more than one person. Modern corporations have grown their influence all over the world, with hundreds of owners investing in their companies at the same time.
11. The marketing department
Marketing involves letting people know about your product or service. Marketing and promoting your product are crucial to starting any business.
Depending on the type of your business, you will need to adopt promotional activities. Marketers follow two types of basic marketing systems. Online and offline marketing are both critical.
Having a small business does not only require self-willingness, but there are a few other factors that need to be taken into consideration in order to make it successful. The article above is sure to teach you about the most important things to consider before starting a business.