8 Things to Consider Before Starting Your Own Business

Jul 16, 2021

There is something exhilarating about owning a business. Whether you saved years from a regular job before getting started, or shifting gears to run your own small business at an early age, there are things requiring close attention. Learning how to start your own business will not happen overnight, so allot time and other resources to increase the chance of making the venture work.

Ditch overconfident statements like “how hard can it be” or “people will surely buy this.” Focus, instead, on what to know before starting a business or what is involved, and tackle questions like “What will be my niche and key messaging,” How long did it take other small business owners to start making a profit?” and on to “Is taking out a business loan a good move?”

Starting Own Business

In a nutshell, here are at least eight important things to consider when starting a business, based on successful entrepreneurs’ experiences.

Passion – Some people have passion or zeal for certain things. It may be a passion for the arts, or for cars, or food, or public service. Being passionate about your chosen project or business will sustain you through the hard times. Passion will arm you with greater resilience and strength to weather challenges. One does not need to be very proficient in a particular task when getting started in business. One can work on the business, and delegate other tasks like delivery.

Skill SetsThe most important thing you should do before launching your product or service is to know where your strengths lie, and what your weaknesses are as well. You may then get professionals who can handle the nitty-gritty of certain business aspects, like marketing and web page designing.

Target Market – Never assume everyone will like your product or need your service. People have varying tastes and requirements and come from all walks of life. Understand who your main targeted demographic is before starting a business. Deliver what your target customers want, not what you want for them. Apart from discerning “what do I need to start a business,” determine exactly what problem or requirement you are addressing, which your primary and secondary markets will be willing to pay for. 

In the US, food carts and mobile kitchens became very popular in the early 1900s. In the book, “The Food Truck Handbook: Start, Grow, and Succeed in the Mobile Food Business” author David Weber cited as example food cart businesses that operated back then at night, in places like Boston, New York. They successfully catered to people who frequented the theater and enjoyed the night life.

Similarly, when if you are considering starting your own business, a key priority for you should be to: understand buying habits of a captive market or potential customer base.

Competitor ResearchBe aware of competitors, experts advise. Healthy competition is a good thing, but too many in the area you plan to launch your business may undermine your startup efforts. If you cannot offer a standout service, or a good product at lower cost to consumers, then rethink another important element in your entrepreneurial journey – location.  Indeed, one of the things to consider when starting a business is accessibility and foot traffic.

Funding – Realistically speaking, the best way to start a business is to have sufficient money. Even if you are not creating a business structure like a brick-and-mortar shop, ample starting capital is vital. You may be seriously considering owning your own business via the franchising route, in which case you need to know purchase costs, opening inventory and overall working capital needed before breaking even. Will you be using your own savings or thinking about how to ask for a loan from family members? Early on, it is best not to leave anything to chance, and consider getting qualified for a business loan. Beforehand, reassess if your new venture will be able to generate enough income to cover loan repayments, before taking out a business loan.

Years ago, many people applied for a loan from a bank. When considering making a loan to a company, a bank will look for a sound business plan and strong credit history. When starting a small business, it’s important to remember that you can widen your options, especially when it comes to financing. Alternative financing from a reliable peer-to-peer funding platform like Blend.ph can be utilized.

With Blend.ph, lending money and collecting the loans are done with customers’ best interest in mind. In case of delinquency, the company’s collection department representative contacts the borrower to remind, without resorting to harassment. Monthly payments are predictable. Blend.ph provides flexible short term, as well as longer-term, unsecured loans to regular loan applicants and small business owners including retailers/resellers and franchise operators.

Self-Discipline – Most successful entrepreneurs get by with some help from family and partners. One of the essential traits to have is self-discipline, be it with handling money, meeting financial goals, or dedicating time to develop the business.

Flexibility – One of the things to start a business with is usually a plan.  Some experienced small business owners have noted that while a business plan can be useful, there are unanticipated instances, like when the pandemic occurred, requiring entrepreneurs to pivot and adjust, or implement a back-up plan. Being flexible enough to make big changes can prove to be an asset.

Mentors – It does not take a genius to figure out who to talk to to start a business. Experts or specialists who have had years of exposure consulting individuals like franchise operators, or small entrepreneurs, can help position a startup business owner for success and save that person money in the long term. Other entrepreneurs also offer tips for opening a business, while financial partners usually advice saving during the early stage of owning a business, and often enough, to maximize gains.

Get Expert Advice

There are groups, like the association for Filipino franchisers, with members who share best practices, and who also consult a franchise consultant with track record of experience. Association members seek each other’s advice on starting a business and strategies for growth. There are also mentors who write books or create podcasts about their first-hand experiences and cite the most important things you need to start a business, so search for them online.

If you have a very long to-do list to guide you in owning a business, narrow it down initially to these eight important things. Before long, you will be able to fully grasp how to start your own business and sustain it. For questions about loans, kindly email [email protected]. To get qualified for a franchise loan with Blend.ph, visit http://www.blend.ph/franchise-loan. Or indicate your desired loan type and purpose by signing up here: https://app.blend.ph/1/apply/check.