Embarking on an entrepreneurial journey can be an exciting and motivating idea, especially for first-time entrepreneurs. However, starting a business is not a small decision – it can be daunting and demanding. While there are no secrets to success in the business industry, you can improve the odds of your business survival by determining and understanding the 4 crucial factors entrepreneurs need to consider before launching a business.

1. Nature of the business

The first thing entrepreneurs need to think about is the nature of their business. ‘Nature of Business’ means the overall purpose and existence of a company. What are you offering? What are you selling? In general, you can choose to provide the following to your customers:

ü  Service – it can be selling your time and expertise, such as providing BPO and digital marketing services.

ü  Merchandising – also referred to as retail. It can be a buy-and-sell of goods. Examples are online resellers, retail outlets, grocery, and department stores.

ü  Manufacturing – it can be utilising raw materials, labor, and use of equipment, then turning it into a saleable product.

2. Target customer

After identifying the nature of your business, knowing your target market is a crucial next step. Remember, having a service or product to sell is not going to make your business profitable if you do not have a customer who will buy it. One way to know who your target market is, conducting market research will help you find the right customers for your business.

Market research allows you to gather demographic information to better understand opportunities and limitations for gaining customers. The research may include population data on gender, age, interest, location, or any information that is relevant to your business.

3. Location (Physical/Virtual)

A location can make or break your business. Your choice of
location plays a vital role in your business’s success. It affects your income
and expenses, and it also helps create a brand and reputation for your
business. Your location should be inviting and refined. It should create a
positive reputation for clients and customers so they think highly of your
business.

If you are planning to launch solely or partially online, where you show up digitally is just as important. You want to research customer online experience and determine the best digital locations to show up – on social media, on Google, on community forums etc.

4. Funding

It costs money to start and keep a business running. Every business has different financial needs. Thus, knowing how you can fund your startup costs should be considered. You can fund your business through your personal savings, a bank loan, borrow money from family or friends, or grants from the government or other organizations.

Moreover, list down all the possible spending you need for your business to operate to know how much funding you need. This may include your lease payments, operating expenses, renovation, assets to purchase, etc.

Are you a first-time entrepreneur? To position yourself for success, you will need to tap into the expertise of professionals who have the knowledge and experience in the business industry. A good place to start is with the Australian Institute of Training Solutions. Knowledgeable and highly-skilled professors will take you through all the basics of business, marketing, and leadership in a way that’s approachable and easy to understand. To learn more about us and the courses we offer, please don’t hesitate to drop us a message.