So you’ve finally decided to pursue your dream of small business ownership after considering your concept. Congratulations, you’re well on your way to joining the estimated 28 million small business owners nationwide.
Before signing on the dotted line, here are four questions that every entrepreneur should ask themselves prior to making the plunge into small business ownership:
1. What is my motivation to start this company?
This should be an easy to answer, but surprisingly some business owners do not know why they want to launch their business. Your heart must be in it for the long haul if you plan to run a successful business, if not there won’t be enough effort dedicated to enjoy the fruits of labor. When starting a company, it must be a priority in your schedule.
2. Does my product/service already exist?
Competition is a good benchmark for any business. If there is a saturated market for your product/service, ask yourself: “What differentiates my product from what is currently available in the market?” Whether it is quality, availability, cost or simply a better feature, there should be some characteristics that enable your product to claim a portion of the current market.
If your product is brand new, ask yourself: “How will I market it to consumers?” There are many challenges associated with getting a product into marketing channels and as a small business owner, it is realistic to anticipate these challenges.
3. Who is my target market?
A company’s target market is defined as the group of consumers at which a product or service is predominantly aimed. Understanding your target market is important because you must identify with that consumer and appreciate that there is a demand for your product before determining how much to invest in or even to invest at all in your idea. The best way to conduct this is through market research with your target demographic. If the goal is national sales, target various locations throughout the country. It’s better to learn where your product stands in the early stages when there is time to make adjustments.
4. How does my business generate revenue?
It is one of the most overlooked component of the business model is perhaps the most critical to success. Every company requires some form of revenue or cash flow whether you are a non-profit or publicly traded company.
Upon completion of your business model, develop a best- and worst-case scenario. Every company goes through its growing pains, especially in the early stages, but your business must prove profitable through reasonable analysis.
Biz2Credit can help throughout the summer and the rest of the year for all your financial needs for your small business ideas. If lack of funding is distracting your business from achieving its goals, visit Biz2Credit for financing and refinancing. Call (800) 200-5678, or click www.biz2credit.com.