Nobody said that being an entrepreneur easy. Anybody who has started a business of his own will tell you that it’s can be an all consuming activity which will demand a lot out of you but will also reward with more than just financial success.
Success in a Business venture is result of many factors such as knowledge, perseverance, passion, good plan. It has been estimated that every year more than 60% of businesses fail. So, if you are thinking about been an entrepreneur then you may be vey well advised to think it over many times before taking the plunge.
The road to success is long and has many phases which need to be understood by every budding entrepreneur. If neglected at the start of any endeavor then any venture is doomed to fail very early. These phases of a business may vary form industry to industry but one of the most important phases is the market research. While this may seem to be a very logical step it is very often overlooked. Market research helps in determining your market and understand it fully.
Many times, while starting, entrepreneurs are too consumed by passion and emotion to be able to do an unbiased study of the viability of their product or services. If undertaken at the start, many would-be-entrepreneurs can save themselves from the ignominy of failure. Most business plans cannot stand up to the scrutiny of the market research and fail even while been on the drawing board.
To be successful in any market you need to understand the history of the market, demography, economic conditions and current trends. You also need study the competitors already established in the market. Studying them will help you unearth your target audience and your niche.
Many a times, people overestimate the value or novelty of their products/services. This gives them false sense of confidence promoting them to make irrational decisions and undertake big risks.
It may be possible that there are other businesses offering similar products/services with much more value additions and at much better price. Are you offering something really that good?
Once, you have completed your market research and are confident then you need to secure Funds for the Business. The fact is “Businesses need money”. It’s like oxygen. You cannot avoid it. Most small businesses fail because of paucity of funds.
After sorting out funding question comes management. Business needs to be managed on a daily basis. You may have to employ and manage people of varying skill sets and attitudes.
Another important phase is how much money to allocate to marketing your business. Marketing enables people to be familiar with your products and services. Without an effective marketing plan, any business will fail.