Business Start-Up from Scratch - Essay Example

Download file to see previous pages Smart thinking should be employed in order to have potential for growth (Marinel 5). Factors to consider when starting There are various factors to consider before starting a business. One factor is the area of expertise and knowledge. The entrepreneurs must come together and evaluate the level of expertise in providing the good or service they intend to market through their business. For a business to be successful, the business partners must have some experience in the field in which they want to invest. Many businesses fail due to lack of knowledge. The exposure could come from employment in other companies or organizations offering similar products or services. The knowledge should be reinforced by research into the prospects of the product faring well in the market to avoid frustrations. Every niche of a business requires a specific set of skills and, therefore, some require more expertise than others. The knowledge should be coupled with the desire to succeed. Many starters fail in business due to diminishing passion once they face hardships. The people who want to start the company must, therefore, have a culmination of passion if the business is to take off the ground (Marinel 5). The second factor to consider is the market and demand for the product. Before investing in the product, it would be necessary to determine how much of the product will be sold in certain duration. This is a crucial marker for projecting the profitability. The main reason for starting a business is to make a profit and profit involves sale volumes. The product should be sold in areas where its demand is felt. Some products do well in the local market while others would do well in the international market. Extensive research should be done in order to determine the area in which the product will have enough demand to sustain the development of the business. The target customers should also be established. This helps in demarcating the market into various segments based on factors such as the lifestyle, age, and income. Accuracy in determining a market segment is essential to facilitate the recouping of the initial cost as well as driving the business forward. This becomes facilitated by the products ability to satisfy a need in the market. The product launch should also be timely in order to develop a customer base (Longenecker 28). Competition should be the next factor to consider. The entrepreneurs should be able to determine the level of competition they expect when entering the market. This is critical in determining whether they have a competitive advantage against the already established would be competitors. The competitive advantage receives creation if the customers perceive the product to be of superior quality than the others in the market. The product concept should be judged on the opportunity, for business it creates. A brilliant concept does not necessarily imply a fantastic investment opportunity (Longenecker 29). Technology of making the product should also be considered. With time, technological advances evolve in production of many goods in the market. Technological aspect makes a key factor in increasing the competitive advantage by being able to produce higher units of the product, and increasing the cost effectiveness. Once the product to be marketed has been determined, the investors should evaluate their technology to determine if it will help them satisfy the demand effectively, and whether it will reduce ...Download file to see next pagesRead More