Is it difficult to start a business? Hundreds of businesses are started each day across the globe. They range in size from a few dollars of revenue to giant sums of money. For the entrepreneur, starting out it can be very challenging or if one has the appropriate backing and experience, very easy. Some of the elements to consider are listed below, not all, but a sampling of questions you might want to begin with:
Do you have the self-discipline, drive and dedication to your venture? Good ideas are a “dime a dozen”, translating those ideas into goods and services (and making a profit) is not for the easily discouraged. While success is particularly satisfying as an entrepreneur, the amount of time, effort and difficulty will not be minimal. Do you have the personal communication skills, sales ability and technical knowledge necessary to market and sell your product or service?
Do I have the financial backing to embark on your venture? If you’re living at home and are receiving food, clothing and shelter, insurance, transportation and a space for your venture, that’s great. If you are missing any of these resources, it will be necessary to provide them while you are starting your business. You’ll need to fund these expenses just to get started….for a significant amount of time. That said, people have started businesses on a “shoestring” but it is VERY difficult to do and will add to the already high stress involved with a startup.
Do you have the core competencies to start the business? That is, the analytical skills, financial tools, marketing strategy etc. It helps to list the resources you need, the resources you have and the gap between the two. Filling in the gaps with resources will be an important part of your business planning. Have you defined what your business will be, who are your likely customers and why they are likely to purchase your product or services? Have you explored other companies in the same field? How would you differentiate your business from theirs?
Once you have some of these questions answered, you’ll be ready to begin a formal business plan, developing all the details of your concept/marketing/your execution/ launch plans.
I started my business many years ago by identifying a need for a specific product which was not available through normal sources. I found a manufacturer, funded development and production then started selling to my original customer. I was later able to sell the same product to other customers. We typically try not to compete head to head, but specialize in products that are not currently produced and are needed to replace obsolete technology and/or which have smaller quantities not suitable for mass production.