If you’ve been considering making money from your hobby or creating a business in an area that you’re interested in, there are some things you should first think about. Creating a business, no matter how small, comes with a number of pitfalls and problems, so having a good plan in place can help you overcome these.
Not knowing what to do if something goes wrong can leave you in a bad situation, which could damage your business. This is why it pays to answer these questions before you take the plunge. After all, it pays to be safe.
What am I selling and who is it aimed at?
Having a clear idea of what you are going to sell or what service you’re going to supply can help you to create a solid brand identity. People buy into a brand as well as a product, so you need to have a clear message as to what your brand is all about.
This is why it is a good idea to know who your target market is. Knowing exactly who you want to sell to can help you design future products, advertise and handle social media in a way that works for them while also building your business.
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Straying too much from this target audience or from your core products can leave your customers a bit confused, which can impact your sales.
What are others offering in the same area?
Knowing how similar businesses are working and what they are offering will help you better understand how to run your business. While you don’t want to be exactly the same, getting an idea of what products are popular, what social media posts work and the general tone of a brand can really help.
This will also allow you to better see how you can make your business stand out for all the right reasons. This can be things like product designs or service levels, both of which are very important.
You can also get an idea of price, allowing you to ensure you remain competitive while still achieving a profit.
How will you fund it?
You have to spend money to make money, so knowing where this cash is coming from is vital. It could be that you are running your business online and so are able to do this alongside your day job. You might also be willing to work a part-time job while getting the business running. Of course, you could also want to use savings or get a business loan.
However you are financing your business, knowing what money you have available and what you need to make by when is vital. This means knowing the minimum number of sales you can make each week and doing what you can to ensure you get them.
It will also stop you from suddenly realising that you are at risk of being in trouble financially, as you will know the state of your business at all times.
How will it grow?
While it’s good to start off slow and steady, you also need to have an idea of where you want your business to go. Setting your sights on this will give you something to aim for and ensure you are working toward it in the right areas.
After all, there’s no point in pushing into one side of your business if that isn’t the overall idea. However, it is still important to remain fluid, so as to react to how your business is going. This means you can push growth in an area that is working, rather than wasting time and money on something that your customer base doesn’t want.
Am I ready for this?
If you feel you’re ready to launch your business, then that’s great. However, if you think you still need a bit more help and advice, you might find that a business course is the right step before jumping in.
This will help you better understand how to create a working business model and ensure your success when you do create your company.Back to the Magazine