Making the decision to go into business for yourself is not one that can be made quickly. Statistically, most business startups will fail within the first five years. No one wants to put that much work and money into their dream only to have it fail. It is important to research your business, and the market surrounding it, to gauge a realistic level of success while things are still in the planning stage. There are two key realizations each person must come to before they can know if starting a small business is the right move for them.
What is Your Strategy?
Before any money is spent, planning out each and every step of your business is vital to its survival. Outline what marketing, production, or packaging and design solutions will be needed and take stock of their cost. Don’t only consider what you will make but how it will get to your customers. Will you have a brick and mortar shop or focus on an online presence? Strategize thoroughly to make sure you have a concise view before moving forward.
What Problem Are You Solving?
The basis for your business doesn’t have to be world-altering but there must be a public need fulfilled if you are to have any success. If you want to open a coffee shop but there are three on each block, then unless your shop has something extraordinary to offer, you are less likely to be successful. A business should be your passion, but be realistic about the future. Consider finding a new location or hosting live events to have a better chance of success.
Speak to people already in your field and be open to the advice they offer, even when negative. No one plans for their business to fail, so to ensure yours beats the statistics you must design a competent strategy for success.