What You Need to Know to Get Started


Self-analysis

Starting a business will make you work harder than ever before. Self-analysis can help you to decide whether to go solo.

Being your own boss means no one tells you what to do. Instead, you have to rely on yourself to get things done. You are going to be responsible for everything you do and people will be relying on you. All entrepreneurs agree that running their own business makes them work harder than ever before. Evaluate yourself against the following points:

  • You don’t need anyone to tell you what to do;

  • You are good at planning ahead;

  • You meet deadlines come what may;
  • You like to take charge and see things through;

  • You are happy to take decisions without knowing how things will turn out;

  • You rarely waste time regretting your choices;

  • You are willing to work hard for something you want;

  • You have a lot of stamina;

  • You can work hard without making everybody else’s live miserable;

  • You can organise your time and things around you.
 Getting Started Photo

You will need to sell your product or service. Are you able to face rejection, to pick yourself up and keep going until you make that breakthrough? Do you enjoy the ‘chase’ of the deal? Do you have the right temperament? Do you get along with different types of people?

Running a business requires a number of different skills – selling, financial skills like book-keeping, pricing skills, management skills, people skills, research skills – to find the right product, the right supplier. What skills will you need for your particular business? If you do not have these skills yourself, do you intend to learn them or buy them in? What are your strengths and weaknesses? How do you intend to overcome the weaknesses?

The business environment is always changing. Do you enjoy the challenge of managing change?

Finally, ask yourself if you are striking out on your own for the right reasons. If it is to seek a better lifestyle or as a way of coping with redundancy go back and check it all again. Are your expectations about your new lifestyle and income realistic?



Self-analysis
Your Family
Your Market
Sales Strategy
Costs
Cashflow
Finance
Personal Survival Budget
Business Form
Workplace
Legal
Advice



Your Family

Becoming an entrepreneur will affect you personal circumstances. Discuss with your family what might happen. Make sure they understand the risks. Will you be good at separating your business and private life? Striking out on your own will create enormous frictions unless you have the support of your family, your partner’s family and your friends. Will your families and friends be jealous of your eventual success?

Self-analysis
Your Family
Your Market
Sales Strategy
Costs
Cashflow
Finance
Personal Survival Budget
Business Form
Workplace
Legal
Advice



Your Market

Market research tells you if your idea has a reasonable chance of success. It helps you to find customers, identify market opportunities and develop the right products.

Ask yourself these questions:
  • Who are your potential customers?
  • Where are your potential customers?

  • What do they buy and in what quantities?

  • Why will they buy your product or your competitors product?

  • When will your best selling periods be?

  • How often will your potential customers buy?

Research your competition. What are their strengths and their weaknesses? Will you compete with them in price, quality, type of product, or in the level of service?


Self-analysis
Your Family
Your Market
Sales Strategy
Costs
Cashflow
Finance
Personal Survival Budget
Business Form
Workplace
Legal
Advice



Sales Strategy

Make future sales easier by deciding on a sales strategy. Can you list ten or 20 definite or likely customers, and explain why each one will part with their money to buy what you are selling? So why will customers come to you instead of going to your competitors? What is so special about your offering?

Cost-plus pricing is used by most start-up businesses. They work out the cost and put on a margin. However putting some thought into your pricing may pay great dividends. Three points to consider:
  • What prices are your competitors charging? What will it cost to produce your service/product? What is your product or service going to be worth to your customers?

  • How are you going to reach your customers? Should you sell direct to the end user or through a retailer or wholesaler.
  • How do you want people to see your business? What will be the image, young, trendy or mature, conservative? How does this match your potential customer base?



Costs

You need to calculate your start-up and operating costs. How much finance will you need to purchase initial stock, pay for the legal fees, trade and business license, equipment and premises, for initial advertising and for your stationary? How much will your running/operating costs be? Can you cover your running costs and still make a profit?

Self-analysis
Your Family
Your Market
Sales Strategy
Costs
Cashflow
Finance
Personal Survival Budget
Business Form
Workplace
Legal
Advice



Cashflow and Record-Keeping

You need a business plan and a cashflow forecast to determine whether your plans are realistic. Are your customers buying from you on credit? How long will it take to get paid? Do you know how to calculate your break-even point, the point at which you finally start to cover your costs? How much cash will you need until you break even? How much finance do you need to fund your cashflow?

Have you worked out how you will record your business transactions for accounting/book-keeping purposes? Some people have been running a business for years and they don’t know whether the business is viable or not – they don’t keep records.




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