What Do You Need To Consider Before Starting a Business?

Are you currently pondering whether or not you are ready to start a business of your very own? Perhaps you are tired of working for others, you have a great idea for a niche product or services that you've always wanted to pursue, or you've been successfully growing your side-hustle to the point at which it may be sustainable as a full-time pursuit. Whatever the case, there are some very important things to take into account before taking the big leap.

Below, we highlight seven key considerations that you should make before establishing your very own business. Don't for a second think that this is discouragement from doing so. If you're passionate, driven and ready to make a change, business operation could definitely be for you, but the more prepared you are, the better your chances of success.

1. Market Research:
   Before starting a business, it's important to conduct thorough market research to determine the viability of your business idea. This will help you understand your target audience, your competitors, and the trends in your industry. Find out the scale and scope of your target market, as much as you can about how your product could fulfill a genuine need for them, how much they are likely to pay, and whether other offerings in the market sufficiently meet that need.


2. Business Plan:
   A well-written business plan lays out the strategy for your business and outlines your goals and objectives. It also serves as a roadmap for your future growth and success. Business plans do not need to be hefty documents. In fact, it's possible to keep them to a couple of pages, but you need to consider your vision and mission, what you bring to the market, what support you need, what growth opportunities exist, how quickly you can get a product to market, what it will take to do that, how the product will be marketed, what your key strategic objectives are, and include sales and financing projections to indicate a realistic pathway to profitability.


3. Financial Planning: Starting a business requires careful financial planning, including forecasting your start-up costs, estimating your operating costs, and creating a budget. This will help you make informed decisions about how to allocate your resources and manage your cash flow. It's often a good idea to seek professional advice from an accountant or other suitably qualified provider at this stage.


4. Legal Structure:
   Deciding on the right legal structure for your business is important as it affects everything from taxes and liability to your ability to raise capital. Consider the pros and cons of different structures, such as sole proprietorship, partnership, and proprietary limited company (Pty Ltd) before making a decision.


5. Marketing Strategy:
   A well-crafted marketing strategy is crucial for attracting customers and building brand awareness. Consider your target audience, your unique value proposition, and the channels you will use to reach your customers. How is your offering different from those that already exist, is that something that is likely to be in demand, and how can you maintain a competitive advantage?


6. Talent Management:
   Building a strong team is essential for the success of your business. Consider what skills and expertise you will need, and plan how you would go abnout incrementally building a team of talented individuals who share your vision and passion.


7. Networking:
   Building a network of contacts can be invaluable for a business owner. Attend networking events, join trade organisations, and reach out to other business owners to build relationships and learn from their experiences. These connections can provide opportunities for partnerships, mentorship, and support as you start and grow your business.

Once these pieces of the planning puzzle are in place, you'll be better prepared and more comfortable about the viability of your new business, and through the process you may even have discovered ways that you can pivot or deviate from your original concept to something more compelling. Best of luck!

First published 3 February 2023. The information contained in this article is general in nature and does not constitute financial advice. This information is believed to be accurate. To the maximum extent permitted by the law, Curiosity Cave Pty Ltd (ACN 091 954 380) disclaims liability for errors in, or omissions from, this article. In preparing this article we have not taken into consideration your investment objectives or your investment needs and make no representation as to the suitability or otherwise of any product, or security, to you. Before making any investment decision you should evaluate your own particular circumstances, and if necessary seek professional investment and tax advice.