5 FACTORS TO BE CONSIDERED AT AN EARLY STAGE OF BUSINESS

The height of a tree is directly proportional to the firmness of its roots. The same applies to every sphere of life, including business. For a company to reach great heights of success, its foundation must be strong enough. Every business demands the entrepreneur's rationality in making key decisions that will determine its success.

5 Factors To Be Considered At An Early Stage Of Business

Here are 5 factors to be considered at the early stage of business.

• Checking the feasibility of the IDEA

  You have started a business, meaning you have an idea you want to work on and want to make money. But before you make money, you must invest it with time and effort. What if you put in everything, but the idea does not work?

  To avoid being in such a situation, you must run a feasibility study on your idea. You must carefully check if the idea that you have is financially, technically, socially, and ethically feasible or not. If yes, Bingo! Carry on with the further processes; if not, get a new idea, run the feasibility study, and start over. 

  
  

• Partners

  You might have the idea and skills to run a business, but you need a partner as well. Someone who could be a helping hand and a support, not just financially, but, emotionally and mentally too. Look for partners as a resource who are willing to put in their efforts for your business. Carefully assess his ambitions, run background checks and then make it legal. 

  
  

• Unique value proposition

  The business you create is either to sell goods or provide services. But why will a customer buy from you, when you are a startup and there are existing businesses already offering them? 

  To resolve this question, create a value proposition for your products and services. Something that makes you stand out from the competition in your industry as a business. 

  
  

• Funding

  Finance is the backbone of every business. For startups, it usually becomes difficult to raise funds from the market. As a startup, you must build relationships with the investors you find willing to invest in your business. Look out for venture capitalists and angel investors that could invest in you. 

  
  

• Estimating Costs

  Costs are another critical factor that helps the business to generate profits. As a startup, while your goal should be to earn profits, your focus must be on recovering the fixed and variable costs. You must carefully evaluate your costs and try to cut off the ones that can be avoided. 

Right decisions at the right time bear sweet results for every business. Here is where the businessman's judgement, intuition and rationality come into play. A good entrepreneur is the one who makes excellent decisions from the very start. This helps them to visualize the impact of various factors on the functioning of their business.