What Should an Entrepreneur Do Before Starting a Business?

The world has changed immeasurably in 2020 due to the Coronavirus pandemic. Many of us have found ourselves without a job as we have been furloughed from our jobs, or worse, have been made redundant. For those of us that are still employed, our working lives have changed forever as working from an office is something of a rarity as our kitchen table has turned into our new workplace. 

This has led many people to consider a change in career and one of the most popular choices is to start your own business. The inner entrepreneur has been sleeping deep inside many people and this is the opportunity that they have been waiting for to do something for themselves rather than working for somebody else. However, the majority of people will have no idea how to go about setting up their own business, but thankfully, we have prepared this handy guide, so read on if you’d like to find out what an entrepreneur must do before starting a new business.

When people take that first step into setting up their own business they may have the seed of an idea about what services they are going to offer or what goods they are going to sell, but often they haven’t a clue who they are going to sell these products to. It is absolutely vital that you understand your market and know who your target demographic is from the outset, otherwise you will never sell anything. In the 21st century, online marketing is essential, so you should tailor your approach to your type of product and who you are trying to sell to. Younger customers should be targeted through the likes of Snapchat or Instagram whereas older, middle-aged people, are more likely to use Facebook or Twitter as their social media of choice. Whichever you use, make sure that you have done your homework so that you are clear who your audience is and how you will market to them, well in advance. 

Many people decide to chuck their life’s savings at a new business venture, and while this could work, it is also an extremely risky strategy. If things go wrong you could find that your whole life crumbles around you and you are left destitute. Much better is to start small and then grow organically using the profits that you have made from your sales. It may be slow, but you will learn to understand the nuances of your business much more quickly and then can sidetrack into different avenues as and when they present themselves. If you blanket everything with cash you will find it difficult to see the wood from the trees and you may miss out on fantastic opportunities. 

If you are selling a product, for example, second-hand cars or electric guitars, and your business is in a state like Nevada, then you are going to need a prime spot to position your forecourt or shop. There are plenty of places that offer retail space for lease Las Vegas, but what you are really searching for is a location that has great footfall, but is also prominent to the major highways so that you can attract people in. Don’t get sucked in by cheap rents in undesirable locations - they are cheap because no one visits them. Head where the people head, and you will find that you are much more likely to attract the number of shoppers that you need to make a living.

Just as knowing who your market is, is important, so is having a clear business plan from the outset. You wouldn’t spend a fortune buying a house without planning the financial side of things, so why would you blindly start a business? You must plan from the beginning how much you need to take on a weekly basis in order to break even, and then you can work to that goal as your first target. 

Set small achievable targets rather than putting pressure on yourself by saying that you must make a million in your first year. How will you structure your business, as an LLC or a sole proprietorship? These things need to be looked at in advance, and if necessary you should seek professional advice so that you are best placed to start your new venture without making fatal mistakes.

As we have learned there are several important points that you must bear in mind before starting a business. Knowing your market is paramount otherwise you will waste valuable funds advertising to the wrong demographic and you must have a clear business plan that you can follow in a structured way to reach your goals. Growing organically will save you potentially risking a huge capital investment and if you are physically selling goods make sure you have a great retail location that offers footfall and visibility. If you follow this guide you will be well placed to succeed in your new venture!