Before following a checklist or guidelines to start a business there are some prerequisites that will determine your readiness to start it.
Here are three prerequisites for starting a business
- The idea: Is your business idea new? Or is it an existing idea? If its an existing idea, then save yourself the trouble and time wasted during the learning curve and try to look into franchising. If it’s a new idea then sit and write down in details how you envision it happening. If you can see the final picture of your idea, and where it’s going to lead your business to, and know that you are passionate about it; then you are ready to move on with it.
- Target Market: by defining your target market you become aware of that specific group of consumers that will benefit from your business. An example of what to ask yourself would be: “Will my business cater for kids or women? If for women, then are they women in the workplace or are they housewives? By defining and segmenting your group you make it easier to know who to sell your product or service to.
- Target Audience: That’s when you identify the audience that will buy from you based on your Target Market findings. So if the product you are selling is shoes and your target market is women in the workplace; then your target audience will be women in the workplace plus everybody that may give them shoes as a gift. It could be their kids or spouse, parents or partners or even their workplace, if they conform to a uniformed attire at work!
- Know Your Competition: Knowing your competitors can be a healthy practice if you plan for it to be that way; otherwise it may turn into a nasty competition that will end up with loses rather than gain. Reasons for knowing your competition may be to stay informed of the latest development in your industry, to follow modern marketing techniques used or even to partner on certain projects that will benefit both parties! Meet your competitors, stay on good terms with them, and to maximize profit adopt a win win position as you deal them.
Completing these 4 prerequisites is an indicator that you are ready to start your business and grow it into a successful enterprise.