5 Things to keep in mind before starting a new business
Starting a new business can be extremely challenging and tough. Degrees, experience and knowledge don’t always guarantee a successful entrepreneurial journey. This journey may not always be a smooth ride, but once you begin there is no going back.
While we can’t give you a full-proof strategy that will help your new business, here are a few things that you must keep in mind before starting out:
- Recognize your core competency:
When you are planning to enter the market, the most vital requisite is to recognize your core strength and how it can help you get an edge over the competitors. Knowing the area of your expertise and applying that in your business can help your new business stabilize and earn the trust of the consumers. It is also essential to find the relevance of your competency in the existing market in order to measure the profitability of the business idea.
- SWOT analysis:
In order to gauge the viability of the product and/or service that you’re planning to offer, it is important to do first-hand research and market tests. This may require some resources and time, but it is an investment that will bear lifetime fruits. If you roll out your offerings on a large scale and the market doesn’t respond well, you could land up incurring huge losses.
By using the SWOT matrix before launching the business, you can find potential opportunities that can lead to greater profitability and avoid the pitfalls.
- Let your packaging speak for you:
Did you know 1/3rd of consumer decision-making is influenced by packaging?
A lot of times, entrepreneurs neglect one of the most important elements of business – packaging. Although it is said that you shouldn’t judge a book by its cover, we tend to pick the product that comes with a fancy packaging. Having said that, it is important to maintain the quality of the product primarily and not write anything untrue on the packaging solely to appeal to more buyers.
- Create realistic strategies:
It is not important to have a strategy ready for every element of your business. In a survey conducted, it was observed that only 10% of organizations achieve at least 75% of their strategy objectives. Moreover, about 36% companies achieve between 50%-67% and 54% companies achieve less than 50% of their strategy objectives. This shows the need to create realistic business strategies that are easy-to-understand and implement.
- Get the right people on board:
Before hiring people for your business, it is vital to get a lawyer on board. The lawyer will help you stay away from all the legal litigations and ensure that you’re abiding by all the required laws of the land. Being proactive in seeking legal advice will help you in the long run.
Next, hire the right people who share the same core values. This will increase the understanding within the team and also motivate your team to work efficiently.
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