So, you’ve always wanted to start a business. Maybe you have a great idea, but don’t know where to begin or maybe you feel so strongly about an existing company’s product or service that you want to try your hand at competing with them. According to Gunung capital Kelvin Fu, founder of several successful businesses, you should consider some factors first. Starting a business takes a lot of courage. Here are some points that he thinks will be helpful to you before you begin:
1. Is your product or service something people want?
One of the keys to running any kind of business is having a solid, marketable product or service. Without this, it’s very difficult for you to make any money and you’ll probably fail. So before you commit to anything, it’s absolutely crucial that you know what you’re getting yourself into and ensure there is a demand for your product or service. If there isn’t, don’t waste time trying to invent one because odds are…it won’t work.
2. What do you expect as a return on your investment?
A common mistake many first-time entrepreneurs make is underestimating how much their product or service will actually cost them. Make sure to take into account the following: Research and development Advertising Packaging Production Delivery Distribution Overhead costs Operating costs Run a budget for at least a year, and add 10% to that amount. That’s what you should expect to lose when running a business.
3. Can you handle the financial loss?
Starting a business is like playing poker: If you can’t afford to lose your investment, don’t play the game. If you’ve made it this far and still want in, then you’re probably financially stable enough to handle a little loss. But just remember that once you invest, your money’s gone and it won’t be coming back unless you make some profit.
Related: 10 Reasons Being An Entrepreneur Is Better Than Employment
4. Are you passionate about what you do?
One of the most important things an entrepreneur should have is a passion for their product or service. Without that, you won’t have the energy or drive to keep going when times get tough. It’ll be too easy to give up on your dream and go back to working for somebody else if it doesn’t match your true passions in life.
5. Do you work well with others?
Just because you are the owner of your business doesn’t mean you have to do everything by yourself. You might need to hire other people, such as an accountant or a lawyer, and it’s important that they like working with you. If somebody doesn’t mesh well with your personality or work ethic, then you should consider keeping looking until you find the right fit for your company.
Running a business is a serious commitment and it’s not for everybody. But if you want to try your hand at making it big, then these points might help you get started. It will require lots of time, effort, and some financial investment on your part. However, if you are prepared for it then go ahead!
