What to consider when starting a startup business

The world is full of people with great ideas! Many people would like to see their great ideas turn into a vibrant money-making opportunity. The entrepreneurial spirit is the engine of our economy. Thanks to the entrepreneurs of today, new businesses are alive and thrive. Consumers have more options than ever before for a variety of goods and services of any category they can imagine. If you have a brilliant idea and are considering becoming one of the thousands of entrepreneurial business owners, before you take the plunge, here are a few things you need to consider:

1. Do Your Research

Often, products and processes which inspire your idea will need research and development. Before you jump into production, you need to research markets and patents. Look into the market and see if anyone is already doing what you want to do. Remember… pending patents are not always made public until the patent is officially registered, so make sure your idea is first to the table or at least is different enough than those whom you would see as competition to make it a viable product.

2. Validate Your Idea

In the thirty-eighth episode of The Simpsons (“When Flanders Failed,” aired 10/3/1991) Ned Flanders opens a store known as “The Leftorium,” to satisfy a selfish need of never being able to find left-handed themed products. His dream quickly crashes and burns. This is partially due to the fact that he didn’t validate his idea with the right kind of people. He went to his neighbor, Homer, who was bent on watching him fail.

If you validate your idea with the right type of people in the right market (not just your friends and family) you can really find out if your product or service can really make it in the real world. Experts recommend that you do this without pouring a lot of money into your business.

3. Don’t Underestimate Your Cash Flow

It takes a lot of money to start a business, especially one that has a storefront. You need to consider your overhead expenses, cost of goods, inventory, marketing, payroll, taxes, rent, utilities, cash on hand and other expenses. Make sure you have money for day-to-day operations and enough to operate during the slow season so things aren’t stressful and difficult for you. Understanding your cash flow and having a clear view of where you are money-wise will help keep your spirits up when things are slim.

4. Getting Customers Into Your Business

No business can survive without customers. Consider offering coupons and discounts to customers who come in. This can be a great way to get new customers through your doors. You can have online only specials or mailers they have to bring in with them. You can also reward customers who provide your business with online reviews telling others how their experience was with your product or service.

If your store is online (something many people are doing these days) you could get an edge on your completion and a large market share by obtaining an agreement with Amazon.com. It brings millions of people to the virtual table every day. It would only make sense that you would want a piece of that pie.

5. Bringing it All Together

There is a lot that goes into starting a business. When done the right way, a business will thrive and grow. That is how the American dream is achieved.

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