Regardless of your decision to become an independent business owner or become a franchisee, research is the single most important activity in making your decision.
Starting a business of your own is a life-altering decision. It requires months of planning, hard work, intricate strategies and thorough research to pull it off successfully. Once you arrive at the decision to start your own business, you need to decide whether you want you to be an independent business owner or a franchisee.
Regardless of your decision to become an independent business owner or a franchisee, research is the single most important activity that needs to be conducted thoroughly in order to finalise your decision. Without ample information, you may end up making the most costly decision of your life.
Starting a business from scratch is more difficult than owning a franchise. However, having your own business does have its perks. So, if you have come to the decision of starting your own business, then consider these below pointers to evaluate the business opportunity.
What Business to Start?
Believe it or not, it is one of the most difficult and important decisions you have to take. Many people start a business with the thought of making money and later come to a realisation that they do not enjoy the business. Hence, you should always select a business which compliments your future goals, talents and that you will enjoy for a long time. Ask yourself these following questions:
Is there a Market?
Before kickstarting your business, conduct market research to understand whether there is any demand for the product/service you are offering. For the success of any business, it is essential that they should either satisfy a need, solve a problem, or respond to a trend. Make sure you get answers to the following question:
- How many potential customers are there in your area?
- Will your product or service sell in those areas?
- What should the appropriate pricing be?
- Who are your competitors and how many of them are there?
- How will your product or service be unique?
Determine if you can afford that Business
No matter how low-cost your business idea is, it is an undeniable truth that you cannot start it without capital. Checking on your finances is a crucial factor; many new businesses fail due to lack of money. You need to also include operational costs in your financial planning. Here is the detail of the costs you need to consider:
- Location design and construction
- Professional fees
- Equipment and fixtures
- Opening inventory and supplies
- Pre-opening labour
- Opening advertising and promotion
Operational Costs (The money you will need to run your business until you register enough profits):
- Staff salaries
- Interest on a loan (if there is any)
Is it Worth the Time & Energy?
After all the research and calculations, it needs to be determined if you can make enough money to make the venture worthwhile. Estimate the profit potential for the business while taking into consideration all the factors such as income, expenses and profit. Think about the amount of time and energy it will take to make the business successful. If you are totally convinced with the positive outcome of your business, only then should you continue with the business idea.