Starting a business can be exciting, but there’s a lot to think about. You might have a great idea, a skill you can turn into an income, or an opportunity you’ve spotted in your community. But how do you know if it can become a viable business?
You don’t need to have everything figured out before you start. Taking the time to think through a few important questions can help you make informed decisions and build stronger foundations.
Here are 10 things to consider when starting a business.
1. What problem are you solving?
A good business usually meets a need. Think about what your product or service does for your customers and why they would choose to pay for it.
Ask yourself: Who needs what I’m offering? What problem does it solve? What makes my idea useful or valuable?
The clearer you are about this, the easier it will be to explain your business to potential customers.
2. Who are your customers?
It’s difficult to sell to “everyone”. Think about the people or organisations most likely to buy from you.
Where are they? What do they need? How much are they willing to pay? How are they currently solving the problem?
Understanding your customers can help you make better decisions about everything from your pricing to how you promote your business.
3. Is there enough demand?
Liking an idea and buying it are two different things.
Before investing too much money, look for evidence that people will actually pay for your product or service. Talk to potential customers, research similar businesses and, where possible, test your idea on a small scale.
You may discover that your original idea needs to change – and that’s okay. Learning early can save you time and money later.
4. What will it cost to get started?
Write down everything you might need to spend money on before you make your first sale.
Depending on the business, this could include equipment, tools, stock, insurance, registrations, licences, a vehicle, technology, marketing or somewhere to work.
Knowing your start-up costs gives you a much clearer picture of how much money you need and whether you can realistically get started.
5. How much do you need to charge?
Setting a price isn’t just about looking at what competitors charge.
Your price needs to cover the cost of delivering your product or service, contribute to the ongoing costs of running your business and leave enough for you to earn an income.
Being busy doesn’t always mean a business is profitable. Understanding your numbers from the beginning can make a big difference.
6. How will people find you?
You don’t necessarily need an expensive website, a big advertising budget or thousands of social media followers.
Think about where your customers are and the simplest way to reach them. That might be through word of mouth, local networks, referrals, community events, social media, online searches or relationships with other businesses and organisations.
Start with what makes sense for your customers and your business.
7. Who else is doing something similar?
Other businesses aren’t necessarily a bad thing. In fact, competitors can show you that there is a market for what you want to offer.
Look at businesses providing similar products or services. What do they charge? Who do they serve? What do they do well? Is there something you could do differently?
The aim isn’t to copy another business. It’s to understand the market you’re entering.
8. What are the practical requirements?
Depending on your business, there may be registrations, licences, permits, insurance or other requirements you need to consider.
You’ll also need to think about things such as your business structure, record keeping, tax and how you’ll manage your money.
It might not be the most exciting part of starting a business, but getting the basics right can prevent bigger problems later.
9. What does success look like for you?
Not every business needs to become a large company.
You might want to create a reliable income for yourself, employ family or community members, work more flexibly, grow a business over time or create something you can pass on to the next generation.
Knowing what you want from your business can help you make decisions that suit your goals rather than somebody else’s idea of success.
10. Who can help you?
You don’t have to work everything out by yourself.
Talking through your idea with someone experienced can help you test your thinking, understand your numbers, identify risks and work out your next steps.
At Many Rivers, our Business Coaches work one-on-one with people to understand their business idea, develop practical business skills and make informed decisions about starting or growing a business.
Our support is tailored to you and your business. We won’t do the work for you, but we can work alongside you as you build the skills and confidence to move forward.
Thinking about starting a business?
Whether you have an idea you want to explore or you’ve already started taking the first steps, Many Rivers may be able to help.
Get in touch with Many Rivers to find out more about our free business coaching and support.