5 Things to Consider When Starting Your Own Business (Part 1)

Alison Setton March 7, 2018

There are many details to consider and seemingly endless tasks to keep organized after the initial excitement of being your own boss and keeping your own hours has faded.
Here are 5 things to consider when creating a business of your own:

1. Startup cost

The startup cost of your business depends on the type of business you want to have. To estimate the startup cost, make a list of anything and everything you’ll need to finance in the first 6 months. Then take each expense and ask:
-Is this cost fixed or variable?
-Essential or optional?
-One-time or recurring?
Once you’ve determined the frequency and necessity of each cost for the first 6 months, add it all together. Then you’ll have a ballpark idea of what your startup costs might be.
Hint: Don’t forget to add a line item for those unplanned expenses!

2. Competitors

“Find a need, and fill it” is general advice for starting a successful business. But if the need is apparent, how many other businesses will be going after the same space to fill? And how do you create a business that can compete? After all, keeping your doors open and your business frequented is priority #1.
The simplest and most effective solution? Be great at what you do. Take a step back and think like a customer. Try to imagine how your competitors are failing at meeting customers’ needs. What can you do to solve those issues?
Hint: The cost of your product or service should not be the main differentiator from your competition.

3. Customer acquisition

The key to acquiring customers goes back to the need you’re trying to fill by running your business. Be aware of your brand and what your business offers. This will make identifying your target audience more accurate. Target you niche market with a varied strategy on multiple fronts: content, e-mail, and social media; search engine optimization; effective copywriting; and the use of analytics.
Hint: The amount of money you spend on marketing – e.g., Google & Facebook ads – is not as important as who you are targeting.

Check out my next blog on why building product inventory and compliance with legal standards is important for successfully operating your business..

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