Last updated on September 10th, 2020 at 06:14 pm
We know that the vast majority of startups fail within their first year of operations. For those starting their own business in 2016, this means they must commit to researching the process carefully before they begin. By learning from the mistakes of others, future business owners can ensure their success in the coming years. To help in this process, we’ll offer our five things to consider before starting your own business.
Sizing Up the Competition
The competition is the element that defines a business’s success. As a future business owner, you must ask whether other organizations in the industry have a fundamental flaw in their strategy. How much are their customers paying for the company’s products or services? Analyze what the competition does well and what they could be doing better before starting your business.
Creating a Web Presence
The latest data shows that 50% of small businesses don’t have a website. Many more don’t consider their website a priority. This is confusing to many market experts due to the swift growth and immense potential of the digital marketplace. As a business owner, it’s important to consider both online and offline marketplaces in connecting to customers.
Building a Refined Business Plan
A business plan can provide a clear path for the success of an organization, and so the plan building process has become a foundation for stable businesses for many years. By building a business plan at the early stages of a company, you can then begin to approach lenders and other investors with the idea and show them your path to profitability. This will help illustrate your understanding of market dynamics and set you apart from other, less serious owners.
Analyzing Insurance Options
Companies with staff are required under the law to have employer’s liability insurance. Those welcoming customers to their property should have public liability insurance. If you use or sell expensive equipment as part of your business, you might also consider product liability insurance. These insurance options can help protect your fledgling company in its infancy and protect your personal finances in the event of a claim against the company.
Discuss Licensing and Legal Issues with a Specialist
Before entering into a particular marketplace, it’s important to review each of the licenses you’ll need to sell products or services in that industry. For example, food vendors require specific licenses depending on the type of operation they run. There are a multitude of legal issues you might face when running your own business, and so it’s important to speak directly with a lawyer before you enter the marketplace and begin working with customers.
By reviewing these five considerations, you can create a sturdy foundation for your organization and its placement in the industry. To discuss business ownership with a specialist, speak with our team today!
Laura Harvey is an entrepreneur herself as the owner of Ontario Business Central Inc. Her passion has always been about supporting the entrepreneurial spirit and advancement within Canada.
Laura authors in-depth blogs for Ontario Business Central assisting entrepreneurs and business owners to start, manage and grow their businesses. She has almost 30 years of expertise as a corporate specialist and 25 years of being an entrepreneur. Laura has the unique position of supporting a community that she also belongs to. She walks the walk right along with you.
You can find Laura on Linkedin and Twitter.