There is nothing better than being your own boss, but before you start a business “Look before you leap”.
There are some important considerations that will help you, when you are thinking about starting a small business.
Is your idea of business worth the time and energy you plan on spending on it? The idea has to be efficient in terms of the certain things like demographics of that area where you are planning to start the business (Average age of the population, division of the genders and the total population) along with this you have to cater for the local needs of the target area (Preferences, usage patterns, spending pattern of the consumers, the potential customers that your business may attract).
Most important aspect before starting any business is you have to consider the fact that whether your business is feasible .i.e. whether it will breakeven and start generating profit and revenue within 2 years so that you can grow. Because according to experts, small business should reach a breakeven within 2 years otherwise you have to seriously think about your business.
Along with the feasibility you have to consider your financing method for the business to be feasible, for this you have to think;
- Do I have my
own capital to finance the business?
- Personal capital investment is risky because in case of business failing, you won’t have your savings to support you.
- Do I intend to
- Multiple options available in the market, each with its pro’s and con’s. It will be discussed later.
No business can survive in the current market scenario without people being aware about it or the product and service being visible for potential customers. The cost of promotion is a major factor in making any business feasible because you have to make sure people are aware and can see your product. If they see, they will buy.
Now that we have laid a basic premise on the 3 basic considerations, let’s talk about the fourth consideration
How To Execute The Idea?
Execution of a business idea entails the cost of starting and financing a business. As discussed before, the borrowing option is better and there are multiple options of borrowing.
Traditional borrowing is readily available at banks but the cost of traditional borrowing is high as the interest rates demanded by banks are very high and most small business cannot afford it and sucked into the debt trap and eventually falter and default because of the harsh terms of the commercial banks.
So you have to be creative and have to look for other options i.e. financial institutions available in market with flexible terms and conditions according to what suits your business and available for financing your idea and to make it a profitable venture. There are multiple institutions available in market for especially helping small businesses to grow by financing them. You have to be creative, you have to be thinking about capital to get alternative capital borrowing for small business to grow and reach their potential through partnerships and key technology support. According to Thinking Capital, alternative financing is a new frontier solely dedicated to the growth and success of small businesses.
It’s a decision you need to make, as today’s wise decision will mark either your success or failure in future. Think wise and grow.