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Nobody decides to start a business because they think it will fail. However, the statistics aren’t very comforting, with more than half of small businesses going under before they reach their fifth year of operation – regardless of whether they’re an LLC in California or LLP in Arkansas. Therefore, it’s important to consider all the angles when you’re making a decision to start a business.
Access to Funding
Start-up costs can vary, depending on which sector you have made a decision to work in. Statistics show that more than two-thirds of businesses in the US originally start in the owner’s home. Of course, this is probably because this can mean fewer startup costs in terms of rent, utility bills, and so on.
However, if the nature of your business requires separate business premises, you will need to have access to capital. In such as situation, secure online loans can be helpful until you get the enterprise running and making a profit.
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Your Areas of Expertise
There is no reason why you can’t make a decision to start a business in a sector in which you have no experience. However, you will face a sharp learning curve if you do. This can slow development of your new business until you have mastered the basic techniques. Also, it could make an already stressful experience even more so.
Therefore, think about your past academic and employment history. Were there any areas in which you excelled? Making your decision by taking into account the full range of your talents and skills can boost your chances of success.
Many people have developed a workable and original business idea from their personal life rather than from their professional expertise. The advantage of making a decision to use a hobby or interest as a springboard for a business concept is that it is something you are already passionate about. This can motivate you more than trying to start up in a sector that leaves you indifferent.
Also, you are probably knowledgeable about those things you’re passionate about. So whether you’re a fitness fanatic or an avid stamp collector, your hobby has the potential to develop into a thriving business. Additionally, you will be in daily contact with like-minded individuals. This alone will make marketing and customer relations much easier.
Not everyone has the temperament for setting up on their own. You need to possess a burning desire to succeed. Further, you must have the necessary persistence to overcome obstacles and setbacks. Therefore, if you sense any ambivalence in yourself about your decision to work for yourself, your new business could be destined to fail.
Your Personal Life
When you make a decision to start a business, you have to think through the logistics of your work-life balance. Accordingly, you might initially start a business as a sideline and continue with your day job. In this case, you will need to devote your valuable free time to getting your new business off the ground.
So consider what effect your new business will have on your personal life. Take into account your relationships with family and friends, as well as any other obligations you might have. Additionally, remember that you will need to be able to enjoy your evenings and weekends without guilt.
Finding a Solution-Based Niche Market
The best business ideas are those that offer a solution to a problem that people hadn’t realized they had. For example, consider those business ideas about which you say to yourself, “Why didn’t I think of that?”
Therefore, get into the habit of carrying a notebook and pen around with you. Then jot down ideas as they occur to you. Make a decision to focus on problem-solving products or services. These will increase your chances of success.
Also, there are plenty of articles online with advice and suggestions about the latest trends. These range from health food fads to tech products and services involving artificial intelligence, virtual reality, and augmented reality.
However, there are problems with following such trends. The first is that the market will already be saturated and you will be competing with lots of other businesses. Therefore, you need to base your decision on a tried-and-tested idea, giving it a new twist to make it unique.
The second problem is that fads and fashions come and go. In other words, you don’t want to make a decision to start a business in a niche market that will have a short shelf life.
For example, one recent trend for new businesses is beard-care products. However, if you make a decision to start a business based on beard care and beards go out of fashion, where will this leave your business?
Some Other Things to Think About as You Make Your Decision
If you’re running an online business, your location probably won’t be an issue. However, be sure to research the local market and your competitors if you’re starting an offline business. Also, think about whether you’ll need to relocate and how this will affect your life.
Your financial situation will also play a role in the decision you make. With the sole exception of some service industries, most startups don’t start making a profit until after three to six months. Do you have savings put by, family members ready to help, a supportive wage-earning partner, or an understanding US private bank?
Don’t Make Your Decision Lightly
Nobody wishes to take away your dreams of going it alone. However, starting up a business shouldn’t be an impulsive decision. Thinking long and hard about all these factors will improve your chances of success.