Strategising your business start-up - Your path to success
Nov 02, 2015
Nov 02, 2015
Strategising your business from the very start is the key to achieve your business goals and take your business to the next level. Strategies that apply to a business start up may differ from the strategies that would apply to an existing business.
What are the key consideration that you need to pay attention when starting a new business? Let's briefly talk about few key points.
1. Creating your business plan - Surprisingly, most people always take this very lightly. Having started a small business and working with a number of different small businesses, we have seen how crucial it is to create your business plan in writing. This living document is the first step that allows you to research your business idea, structure of your business, products and service offerings, your target market, systems, resources and processes, marketing, technology, finance and growth considerations. I can't stress the importance of getting this right, document all aspects of your business on your business plan. Failing to plan is the biggest mistake most start-ups do. This is why, banks and other financial institutions make it a point to ask for your business plan if you consider obtaining finance to address your funding needs.
2. Work out your start-up costs - Every business start-up has its unique finance needs. Analyse these needs for your business. Are you going to start a home-based business, an online business or another business that requires large investment in plant and equipment, inventory etc? How much of working capital is required for the first few years of the business? Some of these expenses could be employee expenses including setting aside a salary for yourself, location cost, capital purchases, inventory, operational costs, advertising & marketing, other charges including costs of obtaining permits, licences, insurance etc.
3. Learn about your potential customers - It would be worth while to spend some time to study about your target market, needs of your potential customers, your competitors and their audience. This will helps you to identify your USP - Unique Selling Proposition and build an strategic approach to launch and grow your business.
4. Set SMART goals - You will need to identify 2 or 3 strategic goals for your business, set a deadline for each, track progress at regular intervals. For example, if your target is to reach $100000 gross sales in the first year from your online shop, you can compile a report every month to track your progress. Doing this in detail with professional help will help you to identify seasonal variations, product specific factors, risk areas of your business and strategise your path to success.