Business Start-Up
If you're planning to start a small business, what are the main areas you're going to want to know about in order to improve your chances of success ?
Answers
The best thing to start with would be an external analysis of the market place covering:SWOT analysis PEST analysisPorter’s five forces analysis Value chain analysisFor a good explanation, see www.cimaglobal.com…ools_nov07.pdf.pdf
03 January 2014
The below answer sums up really well the areas you need to look out. However, other areas include looking into the costs of production (costs of buying in the required services and products you need in order to run the business..how and where can you get these from and at what cost?..who will you employ and at what cost? and so forth); basically, it would be a good idea to look into the financing of the business. By doing so you will have a good idea of what costs you will face and what revenue you will make as a result. Hope this helps :-)
03 January 2014
Hi Paul, to answer your question the most important thing you will want to know is if there is a Need for whatever the small business is going to sell or to deliver etc Market Research - key questions:- Is there a Need? Who is the target audience for sales? Competition - is anyone else already providing the service? Funding - where will the start up Capital come from? How will the Business support itself in the first year and thereafter? Hope these few points help :-) Jennifer
01 July 2014
I too would emphasise the importance of Market Research... it is easy for the start up entrepreneur, through passion and enthusiasm to over estimate the potential success of their business... As such, they need to establish a) is there a demand or need for my product? b) What is competition like, is the market saturated? c) Who are my customers (income levels, tastes & preferences, age demographic etc). One has to be careful to consider however, the potential costs in time and money when carrying out MR, as adequate capital, and consequently cash flow are also important considerations. Most start ups fail, not because their idea was not a good one, but because they have run out of cash! Without a proven success record, finance will not be easy to raise! One way around this is to be creative, and use technology to maximise opportunities more effeciently. Facebook for example is an excellent way to reach large numbers of target audiences fast!... and cheap!
16 July 2014
Absolutely agree, and it doesn't have to cost anything ! Marketing Plan first, before you start a business. Nearly half of first year failures, though, are caused by poor or no planning, then cash flow - usually not allowing for the tax man ! Thanks for your comment !
17 July 2014
Your passion about business?what you want to do ?what new you can offer?are yu offering same or you have ammanded the old idea?who is your potential, clients?what is their ratio ?will the grow in future?your culture and geographic location?how you will communicate your idea to your ?
10 February 2015
Hi paul, the 3 main areas are as follows- Firstly you will need to understand - 1. DEMAND? Is there a need for your product/service, this is because without a need you wont make any money because nobody will buy/use your product, to understand if your business will have demand you can use Market Research such as Questionnaires and Focus groups, . Secondly - 2. PROFIT? is your business going to make any money, you will need to take in to consideration Competition, Start up costs, Start up investment money, Product buy price/sell price, Ongoing costs such as Rent, Repairmen/Replacement of assets, Staff wages, Marketing costs (advertisement), Storage costs (warehouse) and Distribution costs (delivery of products) Lastly 3 - MARKET/BUSINESS, you will need to fully understand your market and your business, what are you selling? how will your business expand? why will people buy your product/service over competitors, understanding your USP is vital for a successful business what is your unique selling point? Knowledge of the market, understand who you are selling to, understand why people will buy from your business over others. Understand how your business will operate who will be working for you? will you have skilled employees who's wages are high or will you have unskilled employees who's wages are low? understand exactly how you are going to run your business and what strategies you will use. Have a plan B to plan Z what will you do if your plan A doesn't work? You will need to have back up plans in order to succeed, Plan A very rarely if at all works perfectly in a start-up. Do you the necessary financial backing to keep your business afloat if your business doesn't make money in the first stages? these are all questions you must ask yourself and fully understand to help a start up to succeed. Hope this has helped you :)
14 February 2015
Hi Paul,Competition- what else is available, similar to your business idea. There should be lots of secondary research to help you with this online.Is there a GAP In the Market- Is your business current to society needs, such as a current trend or are there any competitors for this product/service. Is there demand for your Business?Aims- try to right a mission or vision statement to keep you focused, a business plan should be reviewed and amended regularly to measure your sucess; make changes if needed and new small goals and explain how you will meet these goals (Mission) to reach your main Aim (Vision).Finances available and skills to create, manufacture, market and sell your product or service; this is distribution.Marketing- how will you let people know about your product, how will you advertise. Look at different marketing strategies and decide how far you want your marketing to go? Local, national or international. Ownership- sole trader, partnership, private limited company or public limited company. This will probably help determine your marketing and target market (customers)
19 October 2017
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