By Karlene Sinclair-Robinson
Today an individual can get up and decide to start a business. They get an idea, think of ways to fire their boss and find ways to leverage their time. However, the possibilities of succeeding in a given business or industry can be a daunting and exciting process. Many startups tend to want to get large sums of money to offset one’s feeling of financial security. They tend to want to have enough financial backing for their venture and to pay themselves. Depending on the possible growth of the startup concept, they might be able to qualify to borrow.
Feasibility is a Must
Before trying to start a business and seek financing or monetary support, one should consider doing a feasibility study on the business model. First of all, this study should be done before launching into something that could fail before getting started. A feasibility study can help identify significant drawbacks, possibilities for success, and present a viable approach to getting started. This study approach should be mandatory before spending time writing out a comprehensive business plan. It is all about testing to determine the viability of an idea.
A feasibility study should include the following:
- Market Demographics
- Customer Demand
- Competition Assessment
- Financial Assessment
- Organizational/Management Assessment
- Operational Assessment
There are more things to consider when thinking of a new business idea. Complete a feasibility study and see if it makes sense to put money, time, and effort into something that could be a non-starter or a success.
Financial Understanding is Fundamental
The financial aspect of a business is the heart of a company. When a business owner has a good understanding of their finances and operational processes, they can achieve various levels of success. The opportunity for startup business owners to get this part of their business operations right is fundamental to their success. Therefore, business owners who completely leave the financial aspect of their business up to someone else often fail. When the Internal Revenue Service shows up to audit a company, it is the owner’s responsibility and any key individual with legal signing rights to the business.
Financial mismanagement is one of the main reason companies fail or end up in a turnaround situation. The critical thing to do here is to learn what proper financial management includes and get training where necessary. Develop good financial habits, including checks and balances, to understand the current financial position. It is essential to the ongoing sustainability of a company. Pay close attention to revenue and expenses through proper cash flow management. Assess profitability and other monetary components to help determine when a business stays the course or pivot to improve overall growth. It is crucial to get help and training if one is not already knowledgeable in this area.
Persistence is Key
Our personalities often determine how we achieve our goals. Starting a business is not for someone who is not willing to work for it. Furthermore, developing an idea to bring to a market that does not yet know that they need ‘it’ can be a daunting process. Hence, the uphill battle to bringing a dream to life takes time, money, and lots of sleepless nights. Achieving overnight success is like watching a movie that took three years to make but only 2 hours to watch. Consequently, the audience only sees the result.
Persistence is one of the critical ingredients each of us must possess to become a successful entrepreneur. Without this elemental piece of the formula, some give up before they could even glimpse a tiny fraction of their idea becoming a reality. Furthermore, persistence does not mean that one stays on the same path doing the same thing and expecting a different result. That is called insanity! If that were the case, we would never have the light bulb above our heads. Thomas Edison would have long foregone that his idea would make sense.
So, when one decides to start up a business, be sure to check your persistence meter. Your persistence meter must be strong to survive and thrive in this world called ‘entrepreneurship.’ Finally, enjoy the journey and not just fighting to get to the destination.