Starting Points
1. Will your business provide a professional service (are you selling a service that does not require manufacturing? Eg: IT service, music composer, graphic designer)?
This would mean that you have a special skill which you want to turn into a business. You will use this skill to provide a service to people or to companies. You will probably have acquired a qualification towards this skill. Turning your special skill into your own business is different from being employed by a company.
2. Will your business manufacture a product (will you build something and sell it? Eg: Bike company, electronic parts for technology, factory)?
This would mean that you are creating/building a product which is going to be sold by either a retailer or by you. There will be many things to consider such as: buying materials, hiring employees, etc. You will have probably acquired a qualification towards the production of your product. In this case, your business will be mainly focused on manufacturing.
3. Will your business be a retailer (will your business be a shop selling other companies products? Eg: Supermarket, clothing store)?
This would mean you are selling products from other manufacturers or selling directly to customers from your retail using products from other manufacturers. Depending on the country you will start your business in, there are different procedures to follow in order to get a license to be a retailer. You should also consider if you will need to hire retail space or if you will be an online retailer.
Your Market
4. Is your product unique?
You will need to consider whether a version of your product already exists on the market. You will need to establish exactly how your product is special or different. Convincing your target audience that they need your product will take time and a focused plan.
5. Is there any competition?
You will need to consider the competition on the market and compare strengths and weaknesses between your product and similar products.
6. Have you done your market research?
You will need to carry out a thorough research about similar products and their pricing. You should research what the markets’ biggest interests are. Consistently keeping up with the markets’ biggest interests will bring you a great advantage and long term successful results.
7. Will the price of your product/service be competitive?
You need to consider the cost of creating your product or providing your service. This will indicate the price you will sell your product or service for. If your competition is selling their products or service for cheaper prices then you will need to reassess your initial cost of product.
8. Have you identified your customer target group?
In your research you should have established a clear customer target group. This will also indicate the best ways to reach and attract your customer group. You will probably have to add advertising to your costs.
9. Will you have to create a website or/and social media platform for your business?
Online presence is highly important in today’s world. Gaining the right kind of visibility can have a great impact on your company image and reach. You should consider your needs for having a website and/or social media. This will help you with the expansion of your business community.
Cost Considerations
10. Have you calculated your monthly costs?
Depending on whether you are a professional service provider, manufacturer, or retailer you will have different kinds of monthly costs. The best way to organize your monthly costs is to create an excel sheet estimating every single expense you will have per month in order to be able to carry out your business.
11. Will you need to buy materials?
Regardless of whether you are a professional service provider, manufacturer, or retailer you will need to buy materials. These materials vary from purchasing a computer to parts for manufacturing. Other related costs to buying materials may include transportation or hiring help.
12. Will you have to hire employees?
Regardless of whether you are a professional service provider, manufacturer, or retailer you will need to consider whether it is necessary to hire employees to assist you with your business. If you decide to hire employees, then you must consider social security obligations in your country and the salary you will pay.
13. Will you need to advertise?
Advertising can bring you visibility to a wider audience. You should consider if the cost of advertising is worthwhile for bringing you customers. Advertising can be done through social media or by placing advertisements in other media.
14. Will you work from home?
Nowadays many people have chosen to carry out their business from their home. You should consider whether this is applicable to your business. Working from home is very cost effective but in some cases it may not be possible.
15. Will you need to hire a space specifically to conduct your business?
Depending on what your business is you may need to hire a space to conduct your business. You should consider the location best suited for your needs. If being centrally located in a city is best for your business then you should keep in mind that the cost of rent will be higher.
Financing
16. Have you figured out how much you will sell your service/product for?
In order to come up with the right price for your service/product you will have had to consider the costs you are occurring as described in the previous questions. After having considered all these aspects you should still be able to put a competitive price on your service/product.
17. Do you have capital or savings?
In order to start your business you will most likely need to have some kind of capital available to you. This could be your savings, contribution from your family or friends, or a loan. This money is what you need for the starting period of your business when there is no income yet.
18. Do you need a loan?
You can apply for a loan from a bank. They will ask for your business plan and ask for either a guarantor or collateral. You will have to pay interest for such a loan and you should take this expense into consideration when calculating your monthly costs. Alternatively, you may have family or friends who may provide you with a loan.
19. Do you need investment?
Investment means that another company/person will provide you with capital in return for a share in your company or in your companies income. Investment usually happens once you have been able to prove that your service/product is successful and worthy of investment. Investment can be made by family/friends, investment companies, or professional investing individuals. In order to understand your business idea they will ask for your business plan and in preparation for the potential investment you must have created a comprehensive investment proposal document.
20. Have you identified a potential investor?
Looking for the right kind of investment is an important task in order to make sure that it helps the company grow in the right direction and at the right time. You should do extensive research in order to understand your preferred investment so that you are prepared for the negotiations and can get the terms both parties are happy with.
Essentials
21. Do you know how to set up a company in your country?
Depending on the country you would like to start your business in, there are different rules and regulations that need to be followed. There are different types of company structures from which you will need to choose the correct one. You will have to start by registering your company with the relevant department of businesses before you can start trading. You will also have to open up a bank account.
22. Do you have a/multiple business partner(s)?
You may have decided to go into business with a/multiple partner(s). For a successful business you should all contribute different things towards the development of your service/product. When setting up the company you should have clearly decided how the shares in the company are to be divided and why.
23. Have you considered your tax obligations?
Depending on the country where you would like to carry out your business there will be different tax obligations to consider. The tax obligations also depend on the type of business you are carrying out. Hiring a good accountant with knowledge in your specific field of business will be important for the long term success of your business. You should also keep in mind that this is an additional cost.
24. Do you have legal support?
Hiring good legal assistance is very important. You may only need legal assistance from time to time but it is good to identify legal assistance which is relevant to your business at an early stage in order to be properly informed and ready for any potential situations of conflict.
25. Have you come up with a name for your business?
In order for people to find your business easily you should have thought of a name that you think best relates to your business. The name you have chosen should not be taken by another company. Names which are catchy and not too long are usually easier to remember. You may want to include your given name into your business name. You should design a logo for your business.
On the next page CONCLUSION you will find a summary which is based on these questions above.