Starting anything new is quite risky. And when it comes to starting a small business, it is even riskier as you need to assure adequate return on your investment. Thus, it becomes necessary for the small businesses to do proper research before entering into the industry.
Thinking of starting a new business does not really require anything, but implementing various ways of setting up a small business needs investment. Every businessman, whether small or big, aims at profit, which is only possible when his business comes into the focus of the potential customers.
Doing thorough research before starting a small business is a mandatory step to be taken if one wants to ensure success. Following are some of the parameters on which the research should be based on:
Kind of business: Decide whether you want to be a sole trader or have a limited company. Before coming to any conclusion regarding this, you must know the good and bad points of both the alternatives.
- Sole trader – In this type of business, the owner himself is responsible for everything. From maintenance of the records and bearing all legal and financial liabilities to sharing profits and losses with him, he is solely responsible for everything. The business owner is allowed to keep post-tax profit, i.e. profits after paying taxes. This is easiest and best option for the starter businessmen.
- Limited company – This type of company is the legal entity to its directors. The owner acts as an employee and gets paid as same. This set up is more costly and consumes more time.
Figuring out Competition: Find out who are into the same business in the market. Make an analysis of the strategies that they have implemented to make their business successful. See how well they are doing this. Learn the techniques and know about the tricks to make it even better.
This will ensure proper running of your business as well in the market. Reading your competitors and analyzing the latest business trends, thereby applying the same in your trade, is the best way of assuring success.
Define Target Audience: Identifying your target audience is yet another best way to make your research apt for establishing your new small business. Once you know who your target customers are, it will become easy for you to make your appeal interesting and catchy. If you impress your customers, your work is half done.
Business Presence: No business can be successful if nobody knows about it. Thus, it is of prime importance for the owners to increase the presence of his business in the market. The more popular it is, the more successful it will be. Market presence leads to customer’s awareness, which ultimately ensures the success of a business.
Web Presence: This is the internet age and everything is controlled over the internet – even the business. More than the physical market, the presence of a business online is significant. Most of the people visit the websites to know about the business and its products and services, rather calling up as it was done earlier.
Therefore, having a significant web presence of the business through an official website is very important to reach maximum number of people around the world.
Your USP: There are a number of companies that offer the same products and services. Why do you think the customers would opt for your goods and services? In order to ensure the customers buy your products, it is important for you to research and find out about USPs, i.e. Unique Sales Proposition.
A person will only prefer your product if you offer something different and of course better than what others provide. This ‘something different’ is the USP of your business.
Investor: If you have the capacity to invest in your own business, that’s well and good. However, there are many businessmen who desire to start a new small business, but don’t get any funds to do so.
Do research and find out some investors who could take an interest in funding your business. It is up to you how you convince them to fund your business by providing a clear picture of your business to prove its unbeatable success in the market.
Market Path: Once you are ready with everything, the next research should be based on the market that you should target. This is because customers will only get your product if they reach the market. Know the market route and proceed.
Licenses and legal processes: As soon as you decide to start a small business, talk to the local authority and ask him whether you require any license for the same. If there is any such requirement, you must obtain it as it may harm your image if you don’t take it seriously.
Insurance: Having a secure property is what everyone wants. However, it becomes even more necessary when you have invested in that property. Apply for the best insurance policy to protect your business from any kind of attack. With the help of insurance policies, you get compensations even if your business gets harmed by any natural or unnatural disaster.
Giving a name to your organization, recruiting staffs for the operation of your business, being technology savvy, etc. are some of the major fields to be taken into consideration while planning to set up a successful business.
Priya N is an internet marketer, who writes articles on topics like online business ideas, make money tips, blogging tips etc. on her blog.