It’s not easy to start a business. It is important to determine what service or product you want to offer, who your target audience is, and when to launch it.
Vistaprint’s study found that 62% of Americans want to own a business. 1 But do they really know how to run a business, start it, and grow it? Is it the right time of their lives to start one?
Toni Coleman Brown, founder and CEO of the Network for Women in Business, said that not all ideas are alike and that they are not available to one person in an email interview with The Balance.“It is the person who acts, the one who wins. Therefore, act immediately after you have an idea.
Entrepreneurs have many reasons to start businesses. They may be dissatisfied with their job, looking for a creative outlet or simply wanting more money. No matter what your motivations are, the timing and purpose of starting a business should be intentional.
These are important considerations and steps to help you decide if now is the right time for your business venture.
Research and Find Your Target Audience
Who you want to serve is the core of any great idea. Your target audience is the people who will use your product or service. This can make your business more successful. Failory, a startup-focused content website, recently published a study that found 90% of startups fail. This means that your target audience is the people who need or want your product or service.
Research is essential to determine if there is a market for your product or service. According to the Small Business Administration (SBA), there are three key keys to identifying your strengths, unique selling propositions, and target markets.
- Market research includes gathering data about age, wealth, and population.
- Analyzing consumer behavior, economic trends
Jazmine Thompson, for example, started Winnie & Co. vegan hair care after she couldn’t find moisturizing products that would suit her daughter’s hair.
Thompson spoke to The Balance by phone, saying that she realized other mothers were facing the same problems in her search for the right product. Thompson used her Facebook Parenting Group membership to connect with other mothers and receive feedback about their hair needs in order to create her vegan-based products for young children. Thompson was inspired by this feedback to start her own business.
Test Out Your Idea on the Target Market
You can test your business ideas to determine if they work.
Tonita White, the owner of Dopely Lit in 2019, had the idea of launching a home fragrance. She wanted to market soy-based candles to the “urban” consumer.
White spoke to The Balance by phone, saying that she kept returning to the idea of a home-scented fragrance line. “I needed a creative outlet and I wanted it to be something I enjoyed and loved.”
White, a busy mother of twins, decided to test the market with two fragrances. White set aside money for supplies and opened stand-alone shops. After trying out her business idea, and seeing that her products were well-received by customers, White decided to go for it in 2020. To further her business, she created a website and a social presence. White also expanded her product line to include holiday scents and candle melts.
Do You Have the Time, Energy, and Resources?
If you’re ready to start a business, you’ll need the time to dedicate to it, the energy, financial resources, and a network that will support your endeavor to get through tough times.
Time and Energy
Although you might be eager to start your business, it is important to remember that time is an important factor, particularly in relation to your personal and professional lives.
Imagine that you are a stay at home mother with small children and no other child care options. It might not be possible to launch a business that requires you to be available for clients all day. You might also find it difficult to launch a business if your profession is demanding.
Your idea is still valuable. Consider how you can realize your vision in a more practical way.
Teresa Satchell (business strategy coach, founder of Kingdom Legacy Partnerships), spoke via telephone to The Balance, “Patience” There are seasons in life and seasons when you need to be successful. You may have to adapt or offer fewer services due to changes in life, but that does not mean that you should stop.
How will you finance your new business? Many entrepreneurs will need to create a budget for their business’s legal structure, marketing, and supplies. You will also have recurring expenses as part of managing your business.
Your business type will determine the amount of money that you require to operate it. An entrepreneur starting a blog, for example, will not need to spend much. However, a person who wants to start a business that will require a storefront or a lot of equipment will need a business plan. They also need good credit to finance the idea.
These important financial questions will help you decide if now is the right moment to start your own business.
- What amount of money have you saved for your business to finance it?
- How does your credit score compare to your potential business opportunities?
- What can you do to build your credit to be ready to launch your company?
- What startup capital is required to finance your business?
- How much do your business expenses look like?
- What will it do for your personal finances?
Networking with others is possible through Social channels such as LinkedIn Industry-related Professionals, For example, it is crucial to have a plan for starting a business.
Satchell stated, “Before starting a business consultant with a consultant. This will help you make the right decision.” “Entrepreneurship can be a long journey. You can reach the top by connecting with the right people and forming partnerships. It is important to make connections and meet the right people.
Your ability to start your business may be affected by the time of year. People may open businesses at the start of the year to take advantage of the fresh start that comes with a new year. Others may think that it is best to start a business when the market is ready for them.
If you’re a baker, for example, it makes sense that you start planning your business in the summer. By the fall you can promote your products with tasting events to prepare for the holiday season.
You’ve Made a Plan
No matter what industry you are in, it is best to create a strong and sustainable business plan. Then be realistic about your ability to implement and maintain it. It takes dedication, a good understanding of your market, the economic outlook in your industry, and a realistic view of your financial capabilities to run a business.