5 Keys

Five key decisions to make before starting a new business

Starting a new business is an exciting prospect, but it requires careful planning in order to set yourself up for success. Without a clear vision, realistic timeline, adequate resources and enough time, as many as 20% of new businesses fail within the first two years.

However, with a keen idea and a solid foundation to springboard off, there’s no time like the present to start your own business venture. But before you dive in, take some time to ponder over these five key decisions you’ll need to make.

Validate your idea

It’s a sad truth that just because you think your business idea is amazing, there’s no guarantee that it will be marketable or profitable. Although all new businesses start out with a certain element of risk, your chances of success will be greatly enhanced if you take the time to carefully research your target market and establish that there’s a calling for your service or product. Validating your business ideas before you invest too much time or money into them is the best way to avoid wasting resources, and land with a solid business proposition that’s worth pursuing. 

Develop a business plan

Developing a comprehensive business plan is key for outlining your vision, goals, marketing strategy and operational plans. A well-thought-out business plan will serve as a roadmap that you can refer back to time and time again whenever you need help with decision-making. Begin by deciding the integral elements of your business, such as your legal structure, location, target market and what your business processes will look like. You can then bulk it out by adding in projections and goals for the next six months, one year, two years, and so on. 

Establish finances

Finance is undoubtedly a huge factor in any new business venture, so establishing early on what this will look like for you is crucial. Will you self-fund, seek investors, or apply for business loans? It’s well worth discussing your options with a professional financial advisor so that you can weigh your choices carefully and choose the most appropriate route with minimal risk. From taxes to production fees to shipping costs, there’s a lot to think about before you begin, so be sure to take your time and not rush this step. 

Create a brand identity

It’s important to develop a strong brand identity for your new business, to differentiate you from your competitors and begin to build customer loyalty and recognition. Carefully think about your logo, colour scheme, website style, social media presence and how you will market your products or services. What is the message you want to convey? What are your business’s core values? Answering these questions will help you to create a brand that resonates with your customers’ own preferences, earning you their trust and loyalty. 

Consider available technology

Long gone are the days when technology such as artificial intelligence (AI) was only for NASA and high-tech companies. These days, even small businesses can benefit from the power of AI and use it to boost productivity and efficiency within their infrastructure. While investing in expensive, custom AI systems may not be on the cards, there are plenty of free and low-cost options available to help you jump ahead of the competition. 

Take it slow

It’s easy to get swept up in the excitement of a new idea and want to jump in head first – but by taking a careful, slow approach when starting your business, you’ll be better prepared to navigate the inevitable challenges and uncertainties of entrepreneurship and increase your chances of long-term success.