As the world changes, the population’s view on business also evolves. According to the2016 BNP Paribas Global Entrepreneur Report, the generation today, also known as millennials, are starting their first business at an average age of 27, compared to the average of 35 from the generation before them. What does this mean? Well, it means that the millennials are more eager to start their own business.
One of the top reasons why people start their own business is because entrepreneurs can work for themselves, be their own boss. Sometimes, money plays a role, too.
If you are one of the millennials who wants to start early, then prepare to take risks. If you are older, well, you’re not too late, either! It might not be a smooth ride, but with the proper knowledge, research, and planning, you’ll have success. Here are some tips to prepare for your business:
1 . Do a lot of research and learning.
Do not just assume that you know something. Yes, it is highly encouraged to start a business that you’re good at, or you’re passionate about. But you should also know what you’re in for. Don’t just dive right in. Instead, research about similar businesses and learn its ins and outs. However, there are some ideas that are already patented, so that’s another thing to research about.
2 . Determine your target market.
Make sure to know who your clients will be. Knowing your target and their needs will provide you with a lot of ideas in which areas to improve your business on. Also, make sure that your target market is big enough to support your business idea. For example, people who want to create origami during Friday nights (you get the point). Your target market should be large enough to allow your business to grow and develop.
3 . Check your finances.
Let’s be real. Setting up a business requires some money. If you have enough to start up, good. If you don’t, then you can wait and save up. Or you can also borrow from banks who support start-up businesses, although you have to make sure that you pay them after. Make sure to list and account for the expenses you will have, taking note of any hidden expenses, too.
4 . Define what sets you apart from the competition.
Even if you see some other business very much similar to what you have in mind, don’t be discouraged! Find a way to different your business and provide more value than other businesses offer. Look into their business as a potential client or buyer. What do you want that they can’t give? What would make these things better?
5 . Focus on real innovation.
We might mistake some features for innovation, but really, they are not. Some might just be a novelty; good to have, but not life-changing.
Just remember what Simon Sinek said, “Real innovation changes the course of industries, or even societies”.
Planning is one of the most important stages of starting a business because it minimizes uncertainties. Resources will be risked, and if some decisions are made haphazardly, these resources can just go into waste. To sum it up, a good idea, plus a good plan with good execution, will result into a successful startup business.
