You recently graduated from College or University and have a burning passion to start your own business. However, having the best business idea does not guarantee the success of your business. There are several crucial areas that need to be taken into consideration when first setting up the business. Keep reading to gain a basic understanding of some of these important areas.
Funding your Business
First and foremost, you need to have some sort of funding to start the business. Most start-ups commonly use personal funds or loans from family and close friends. This can be easily obtained without much hassle and terms of repayment are also very relaxed. However, if this is not sufficient to launch initial operations, they look towards external sources of finance such as bank loans, venture capital and business angels. A major drawback of these sources of funding is the high cost of borrowing in terms of interest payments and strict repayment schedules.
Forming the Best Work Team
Most start-ups are launched and run by the owner, at least over the initial period. While this is both cost-effective and most certainly doable, it is never a harm to seek the expertise and inputs of other individuals in areas of marketing, finance and operations. Sharing ideas among a close-knit team with a common goal can lead to greater clarity as well as better decisions in the interest of the business.
Deciding the Place of Work
Location is crucial to a business. Most start-ups usually begin in an extra room in the house or in some cases, even a garage. The business can be registered to your home address till it grows to a certain extent and you choose to move out to a self-rented property, a corporate maintained office or a co-working office space. The main deciding factor would be the cost of investment. For example, a service office in Singapore will cost several hundred dollars than working from home or even a workspace that is shared among individuals from several offices.
The time taken from identifying a business concept to making it a reality, could vary considerably from one business to another. Several key activities need to be taken care of during this period. This could include, clearly identifying the target market you are catering to, determining the best marketing strategy and other product development related matters. All back-end activities leading up to the final launch of a business are quite crucial as they will determine the success of survival and continuity of the business.