When Does it Make Sense to Start a Small Business?

Starting your business can be one of the best decisions of your life. Although from the outside, it may seem very exciting, in reality, it is also the riskiest decision that you might ever take. There is a considerable amount of hard work, time, money, research, dedication, and strategy that goes into starting your business. Whether it is a product or a service, months and years of consideration have to be put in to develop a solid plan.

If you want to work for yourself, follow your own schedule and reach great heights, then start your own business. Unlike a job, where you are limited to your senior management and job roles, being a business owner makes you a one-man army handling operations, management, accounts, team, and many other areas.

To start your business, the first step is to identify the industry and come up with a business plan. A business plan helps you decide the investment required, business goals, competitors in the market, define your USP, among other things. This will give you complete clarity on your business idea and how to get started.

Hence, if you are looking forward to starting a business but are struggling to get the answer to the above question, you are in the right place. Here, we will discuss the perfect time to start your own business.

Factors to Consider Before Starting your Business

1. You Have Ample Time to Devote

One of the scariest prospects today is not to lose money or gold, but time. Most of us struggle with time management, but if you are keen on starting a new business, then start working on improving this area.

A new business requires extra working hours to create a foundation. With proper planning, you can execute a business plan adequately. This will help in preventing uncalculated risks. Also, remember that there is no point in giving just half of your energy, especially if you are expecting substantial returns.

2. Enough Capital to Start the Business

The first thing that’s required to build your business is to calculate how much capital is required. Calculate the financial requirement, profit-making, wastages. So, take time to reflect on the initial investment required and if you have enough money to sustain your lifestyle for at least 6 months.

Consider expenditures such as registration fees, office setup, purchase of electronics and machinery if required, marketing and branding costs, hiring human resource, learning and development. Running a business can be very challenging and you should be mentally ready to bear losses if they occur.

3. Right Connections

Once factors such as money and time are sorted, the next big thing to consider is the 'Right Connections'. Have you heard the phrase, “Your Network is Your Networth”?  It’s your personal connections that will come in handy when trying out your products and services, and they will be willing to spread the word for you.

Consider joining multiple business networking groups.

4. Right Knowledge

Learn as much as you can about the industry. Find mentors as they will help you dive into a deeper knowledge and save you from committing avoidable mistakes. Read more so that you will know the insider truths and details from both your competitors and also bench-markers.

Conclusion

So, before you step into an entrepreneurial journey, you need to first address the following questions:

1. Do you have the time to start and run your business?
2. Do you have the necessary capital required to run your business?
3. Do you have the right connections for the first phase of marketing?

Once you have figured out the answers to the above questions thoroughly, you will know how ready you are to start your own business. You will also know how much time you require to be fully prepared to launch your business.

Also read:

1) Online Business Ideas You Can Start Quickly
2) What online business can I do to make money? Here are the top-6 ideas for you.
3) Where Do the Best Business Ideas Come From?
4) Best Home Business Ideas in 2020
5) OkCredit: All you need to know about OkCredit & how it works.

FAQs

Q. If I want to start a business for which I do not have the desired skill, should I continue to start my business in such a scenario?

Ans. One should only start a business about something they are passionate about or have complete knowledge of. In case you fail to possess the skill-set or knowledge about the industry you want to get into, it might not be a very viable idea to start your business in that domain. This is because you will always depend on others, such as your employees or your mentors, to help you grow. Also, you will lack the 'First Mover Advantage' since you will rely on your competitors to take the next step.

Q. In the case of a small business, which is better to sell a product or service?

Ans. This is a good question, and there is no right or wrong answer. A business could be selling a product or a service; regardless of this, many factors define its success. You should not worry about selling a product or a service; rather, you should focus on excelling in what you are sending. Make sure to have intricate knowledge about the industry you are planning to enter and develop the right skill-set for the same.

Q. What are the multiple ways for a small business to market itself?

Ans. Currently, we should feel lucky in the era we are living in. The emergence of technology, then the internet, mobile phone, and social media, has made entrepreneurs' jobs easy. Earlier, one had to spend lakhs on tv advertisements or outdoor hoardings, which did not get so much traction, and there was low ROI.

However, times have changed now, as, with the emergence of social media, it has been a boon, especially for small businesses. You do not have to spend a bomb, and you can still market your services in the best way possible. You could use paid ads on different social media platforms such as Facebook, LinkedIn, Instagram, etc. You could also use influencer marketing, which is considered one of the best ways to gather the attention of the target audience.

Q. How important is knowing about technology to start your business?

Ans. Today, be it a product business or a service business, technology plays a huge role. One has to be well versed with technology to be able to survive the cut-throat competition. Every hour there is a new invention that is taking place, and to be able to sustain itself in the market, it is very important now to be technologically sound. There are various other advantages of technology, such as the fact that it helps in saving time and cost. It helps in delivering better quality output, too.