Things you Need to Consider When Starting a Small Business

By Fred Klein / August 26, 2016
what is your point of difference

Having an idea to start a business is easy but implementing that idea is where the challenge comes in. Starting a small company no matter how small it is can be challenging. You have to plan everything well and carry it out.
For most of the people who start these businesses use their personal savings. And so it is important to take very serious precaution so that you do not make mistakes that will affect your personal life.

Here are tips that will assist you to start a small business successfully.

Knowledge of the Business

Ensure you have skills and knowledge in the kind of business you are starting. You need to be experienced in everything you decide to do. The chances of doing well in the firm that you are well experienced are very high.

Passion

resell something online or offline

You have the option to resell something online or offline

Start a business that you are passionate about. It will motivate you and increase your morale. You will still work hard even when things are not going well since you will always feel motivated.

Market

Consider the targeted market before setting up a small company. For instance, if you are selling skinny jeans then your targeted group is young people so set a business where you are likely to get customers.

Capital

Make sure that you know the amount of money your company is going to use. Ensure that you also know where to get funds from just in case your capital is not enough to complete the process.

Competitors

Getting closer to your competitors is an added advantage since you can be able to get your customers and at times those of your competitors. It will also motivate you to work even harder.

Profit

The primary goal of every business is to make profits. After deducting all your expenses and all the cost, you are left with a profit. It is important to estimate the kind of profit you will be getting.

Location

The place where your organisation is located plays a critical role in the success of your business. Consider the security in the area, availability of labour, key distributors and your competitors.

What to have in mind when starting business overseas

If you run a successful business in your home country, you may have an idea of expanding it abroad and making it international. This is certainly a large step, with plenty of good and bad sides and possible obstacles you will encounter. In this article, we will present you some of the most important things to have in mind when you decide that you want to take your business global.
Before taking the big step, you need to ask yourself several questions and think about certain aspects of going global. 79981685Firstly, think about whether your products are likely to sell well in the other country, since different cultures may have different needs, preferences and even laws which may affect your sales and the overall success of your brand. Secondly, think about whether the target market is already familiar with your business and your offer. If this is not the case, keep in mind that you will need to invest a lot of money and effort on advertising and possibly even consumer education. Then, think about whether you feel comfortable in the target country. As the business owner, you will need to work and communicate with the people from the target country, and possibly even live there for a while in the first stages of company development. Businessman Choosing the right person in the old textureTherefore, make sure that you are familiar with their culture, customs and language before you make a move. Last but not least, think about the infrastructure of the target country, because it determines the reliability of supplies delivery, production and much more.
If after all this you decide that it is time to export your product, it is time for the next step. Assuming you have performed a thorough market research and familiarized yourself with the market conditions of the target country, you should start a business spreading campaign.

Prepare a thorough business plan, set clear goals, select the preferred methods of distributing the products to the target country and learn how to act in the circumstances of a new culture.

83253174_XSOnce you hit the international market, it is important to make business moves according to the culture in which you do the business. This implies pretty much everything you would do in your home country – build relationships with your clients and associates, be flexible, learn to understand body language and dress professionally. In case you do not know the language well enough, it is advisable to bring your own translator.
As international expansion of business needs financing, you can ask the Import-Export Bank for help. They will guarantee working capital loans, but also credit insurance which protects the exporter in case the foreign buyer does not pay. The Im-Ex Bank offers a great deal of trade services for the exporters, and they will finance all types of goods and services as long as they are not military-related.

Last but not least, once you have expanded the business overseas, it is important to find a reliable foreign distributor. Assess the distributor based on their area of expertise, recommendations and references, and choose the one who best fits your area of business.