So you’ve made the decision to take the plunge to start your own business. Congratulations! I’m very excited for you. But after coming up with your big idea, what do you to do next? I am sure the question has crossed your mind several times.
The journey of entrepreneurship has no hard or fast rules however those who are successful followed and trusted a simple process of planning. This process ultimately turns your business idea into a viable business. Any plan or strategy should should include the following key areas:
- Business definition
- define the problem you will solve
- identify who you will sell to
- define how you will make your product or service
- define how you will reach your intended market
- Industry analysis
- identify trends affecting your industry
- define your main competitors
- define how will you compete in the industry
- Market analysis
- define who you will serve
- define the characteristics of your customers including habits and lifestyle
- determine how much you will need to start your business
- determine what your projected sales will be
- identify where you will obtain capital and funds for your business
- Product pricing
- determine whether your products/services will be sold at a premium or discount price
- identify typical prices charged in the market by your competitors
- identify the trade associations you will join
So your next step should be to prepare a business plan. I strongly suggest that you take the time and trust the planning process because it will help you to better understand, test and defend your business idea. More importantly this process increases your likelihood of running a successful business.
Rashida Parasram is a freelance accountant and business consultant with a passion for seeing small businesses thrive. She is a member of the Association of Chartered Certified Accountants as well as the Institute of Chartered Accountants of Barbados. She has gained over 10 years’ experience in the fields of audit and business advisory with the accounting firms of KPMG and Ernst &Young.