Deciding to start your own business is an exciting decision. It can also be a worrying time. There is no guarantee of success and many small businesses do not last beyond the first year. Successful businessmen such as Tunde Folawiyo know that planning and preparation are vital for success and following these tips will give your business the best chance of flourishing.
Research your product
At the centre of any successful business is a great product. It is important to check that your product will have a customer base wanting to buy it. Surveys and market research can help give you this information.
The name that you choose for your new business is very important. It needs to be something simple that clearly relates to the product. Once you have some ideas for a name, it is worth checking online to see if the domain name has already been taken.
Businessmen like Tunde Folawiyo know that having a comprehensive and detailed business plan is vital for starting a successful business. The business plan should set out what will happen to the business particularly in terms of reinvestment and expansion and when it is planned that these actions will take place. A business plan should not be a static document and should be revised on a regular basis to take account of the performance of the business so that adjustments can be made to the plan if needed.
It is vital that you find the right staff for your new business. Recruitment methods have changed substantially with many businesses preferring to recruit online rather than the traditional way through job agencies. This can make it easier to recruit staff with a specific set of skills and can make the process quicker as you are generally dealing with the individuals directly instead of through a third party.
Setting the wrong price can condemn your business before it even starts. Market research will give you a guide to suitable prices. Other considerations could be including pricing incentives to aid the start up. This could include some services or minor products that are free. Business costs will obviously have a huge influence on the price that you set. Traditionally the price is set at a point somewhere between two and five times the cost of producing the product. If your new business will have close competitors then it may be advisable to set a lower price and initially settle for a smaller profit.
Make Your Business Attractive
One way to ensure that your new business will be successful is to create a service or a product that can be used by other companies. This may mean that your business could become so valuable to other businesses that they will want to buy it in the future.
Get People Talking
Word of mouth can often generate new business and social media has meant that it is now much easier to pass information about your new business to a wider audience. Social media can also be a great way to gain customer feedback.