5 things to consider before you launch a business

Launching a new business is always an exciting time as hours and hours of hard work are rewarded with a finished product or service. However, most businesses fail within the first year of operation because of a multitude of reasons. The focus of today's blog is to highlight 5 things to consider before you launch a business. So, let's get started…

1. Validate your idea
Whilst its great to have a passion or an understanding of a particular product or service, that doesn’t always mean it’s a viable business. For example, just because you are a qualified Accountant it doesn’t mean you should set up an Accounting Practice without doing some research first.

Take a look at the competition locally and understand if there is a market for your idea. Conduct a small sample or survey, either with general members of the public or online using survey tools to see how people respond to your idea. Always take the responses into consideration and if your research indicates your idea is not desirable, don’t get disheartened. Tweak your idea and test again or move onto your next great business idea.

2. Create a business plan
Having a short, medium and long term plan can really help you plan for the success of your business. A business plan requires you to evaluate every party of your business, from funding right the way through to marketing and customer care. Taking a 360 degree at your business and planning contingencies for every eventuality will ensure your business can pivot and modify when required.

There are lots of free business plan templates that you can download online that will allow you to compile the plan within a few hours. A business plan is also a necessity if you are looking to raise funding from a bank or potential investors.

3. Assess your finances
Launching a business and then operating your business requires capital investment. Create a financial forecast that lists all your outgoing costs, both for the business but also your personal living costs so you have a clear idea of your finances.

We always recommend, where possible, to transition into your business full time. This is achieved by firstly launching your business around your existing job and gradually reducing your employment hours as your business begins to pick up. This will minimise your risk and allow you to stay on top of your finances.

4. Understand your customers
Your customers will be the lifeblood of your business. If you exceed their expectations, you’ll be well on the way to building a long term business. Before you launch your business, spend some time creating persona’s of your customers. Who are your ideal customers? What characteristics do they exhibit?

This will allow you to position your brand, products/services and marketing messages at an appropriate level to entice new customers as well as retain existing customers. Linked to this point, start to think about how you will look after customers and some of the strategies you can put in place to convert customers into repeat customers.

5. Prepare to work hard
Being in business is not all about the flexibility and high return, you actually need to be motivated and consistently work hard. Most people overestimate what they can achieve in 1 year and underestimate what they can achieve in 3 years. A business is a marathon and not a sprint. There will be good and bad days.

Always remain consistent with your work ethic and regularly try new initiatives to grow your business. The rewards for when you get it right are so much higher than working for someone else.

Our final thoughts
Self doubt inevitably kicks in when you are preparing to launch a new business as its human nature. However, by considering some of the aspects mentioned in this blog, you can go a long way to ensuring your long term success.

To find out how iOB Business can remove many of the challenges normally associated with launching a Digital Agency, please hit the ‘Talk to Us’ button up top to find out more.

Until next time, take care.