- Many a time have start-ups failed, and there are a lot of reasons for this. Some but not all of the reasons for failure are rejection by the market, failure to plan (I used to have a teacher who used to say, “failure to plan, is planning to fail“), lack of financial muscle. In this article we address some of the pre-requisites to starting a business and these are not only limited to tech start-ups, we tried to make it fit in any business setup.
Here are 6 things to consider
- Be sure to do your research – After you have decided to put out your business idea into action, it is of utmost importance to do your research on the kind of product you intend to sell ( obviously you don’t want to sell something which you have no clue of what it does or how it works), your niche, and what value your product will give to your customers. Don’t forget to research also about your potential competitors, and come up with strategies to beat them .
- Intimately know your product – As mentioned above, you need to know your product intimately. You need to know your product so that you know what value it is set to present to your customers. The reason being that, in order to make money, you need to offer something of value to your customers, in exchange for money. For example, at Tramstech we offer you a variety of services, some of which include website design , online shop for your convenience.
- Write up a business plan – Remember earlier on we said failing to plan in planning to fail, and guess what, the line is back again. Writing a business plan is as good as drawing up a road map of how you will steer you business, and it could be used as an evaluation tool to check for your progress in as far as your business growth and survival are concerned. When you run your business without this plan, we see you as that headless chicken running all over the place with no direction, and in most cases your business will eventually crash.
Here are some of the things which we think your business plan should outline:
- Your target niche
- Your analysis of your strengths and weaknesses, your Opportunities and Threats (S.W.O.T)
- Your strategies to survive and grow
- Your financial projections
- Your goals and how you intend to achieve them, etc
- Write your marketing plan based on your research – You need to clearly spell out how you intend to market your product, and any other future plans you might have to get your product out to the market and all this will be based on your findings in your research. Doing this will put you at an advantage, as this drawn up road map can serve as an evaluation tool later, to see how much progress you have made towards achieving your goals.
- Do your financial projections – In as much as you intend to go into business, you need to make your forecasts, on how your business “will perform”, and most importantly, make those financial projections that will make you understand even more the kind of business you want to venture into. This could also give you a sense of direction and will help you understand the value of the project and this should motivate you to work hard to achieve your goals in the long run. You get to learn fast, if your project is really worth your time, remember we say, “Time is a valuable resource, use it wisely”.
- Set targets – Look at your business as a project, and we know a project has many targets and in some cases with very tight schedules. We view targets as those aims or milestones, which you direct your efforts at. There are tools which one could use to help in the planning and making sure those targets are met. Some of the tools you can use in your business planning or “Project management” include a critical path analysis , a Gantt chart, and there are many other tools online that you can use and the beauty of it is that , these tools are easy to use.
NB: The things to consider when starting a business are not limited to the above mentioned.
There are a lot more factors to consider that were not mentioned above, and some of which include, Political factors, Economic factors, Social factors, Technological factors, Ecological factors, and legal factors. In as much as these factors are usually affiliated to marketing theories, making up what is well-known as the (PESTEL analysis), we believe they also are to be considered when starting a business.
Starting a business has never been easy for some, and so has been the thought of working for someone for the rest of their lives to some. We do however appreciate the fact that we can not all be the same, some will be employers and some will be employees, so it’s up to you do decide which group of people you want to fall under. Remember when we see the rainbow, we do not see only one color, but we see many colors and that is what makes it beautiful, so we see no problem in being different.
We hope this will help you avoid some problems faced by some startups , and make you touch the ground like a boss. Remember to leave a comment in the comment box, or email us with recommendations and what you want us to write on. Our email is email@example.com
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