Factors to consider before starting a Business

Most people think or have a dream of starting a business, yet only a small percentage of newly starting business manage to grow. The drive of most people starting business is desire to be on top of things. They have no idea of money that is required, the hard work they have to put in the knowledge and patience they need to have until their business grows to make profits.

Here are some of what to have before starting a business.

A Business Idea

Every business starts an idea that actually works. If you want your business to stand out, you will need to offer something that no one else has offered till date

That said not everyone can come up with a unique business idea that actually can stand out. Hence the following questions are essential:

What do I need to do to make this better?

What is it that I can do better than what the other guys are doing?

Will I be able to grab some market share in this category?

You might have a great idea but unless it fulfills the market demand is useless therefore

you can do a research and identify the demand of the market

See what best you can do to address these frustrations.

Government regulation.

The first is to identify the kind of permit required to run your business legally. Another thing is to go the local city council offices to talk to the officers, ask them to explain necessary documents required to run the business. After that you get the required documents to register your business. You need to visit K.R.A offices or website to be conversant with the V.A.T taxes to be charged and how to be paid. If starting a company seek advice of a business lawyer on taxes to be paid.

Knowledge or Expertise

Once you know what business you want to start, you will have to start gaining the required knowledge and expertise to start that business. If you have the knowledge you can construct one, all by yourself. If not, you can always hire a professional business consultant to do it for you.

Market or Demand

Once you are sure of starting your business, your next step would be to explore the market or the demand for your product or service. First identify your target market or consumers.

Secondly is selling the product or service for instance, if is locally asses the demand for instance if taking to international level understand the rules and regulation governing the business.

A market survey should reveal all the details that you may need about the market for your product or service. Basically, you are looking for:

The current size of the market (the approximate number of potential buyers)

Its growth potential (whether it is likely to grow in size or contract)

The market share that you can expect to take

The buying habits of the target audience (and how to exploit them)

The different segments of the market

The kind of margins that you can expect from the market.

By: Mikey Mugutsu.

Related posts