You must have a passion to start your own thing rather than working for someone else; well, great! However, it might not be as easy as it sounds. Being an entrepreneur requires a lot of commitment, so when you make that decision, you need to make up your mind to be ready to put in your time, money and effort all into it. Starting a business can become a make or break situation, and statistics show that 90% of business fail all over the world. So here are some things to consider before you go ahead with your business idea.

  1. Do your research

You need to identify the industry you will be operating in and understand its dynamics. No matter how unique you think you are, there could be someone already in the market with the product you have in mind, and if you don’t do your research on the existing competitors, your efforts will go in vain and you’ll incur immense losses. If you do find someone with the same product, don’t be disheartened. You can either come up with an upgraded product or produce the same at a lower price. Focus on your target market and they will surely like a better version or most of the time, go for the cheaper option. It’s a gamble you will have to make so better have all necessary information in hand. It is essential that you deliver what your customer wants, rather than what you want.

  • Look into legal aspects

Before you start-up, you need to decide on a legal structure of your business since the legalities change as per business type. The most common is the Limited Liability Corporation since it gives protection to the owners with regard to debt and capital liabilities. You will have to register you company, create articles of incorporation, obtain an employer identification number and apply for necessary licenses that will be required for certain types of products. The registration will then declare you tax liabilities, paperwork, liabilities of owners and other legalities regarding the company. It is advisable that you hire a corporate lawyer so that all procedures can be done smoothly. Having these legalities in place will assist you in obtaining finances, entering into serviced offices contracts, earning trust of your customers and suppliers etc.

  •  Find the finances

Money is the biggest hurdle you will encounter when starting a business. Of course you wouldn’t have millions to invest so you need obtain loans from banks, apply for government grants or contact angel investors. Take a business plan with you so that they can have a clear idea of where you are heading and how you are planning to achieve your goals.


 

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