Knowing your target market and being financially prepared is key
Starting a business is never easy. You need to decide what target audience your service or product serves and when is a good time to launch.
According to a study by Vistaprint 62% of Americans want to be business owners. But how many people really know what it takes to start and grow a business? Is now the right time in their lives to start?
“Not all ideas are unique and they’re not just for one person,” Tony Coleman Brown founder of the Women in Business Network said in an email interview with The Balance. “In the end it is the one who takes the action. So once you have an idea you Action should be taken. ”
Entrepreneurs cite a number of reasons for starting a business including not liking a job they currently need a creative outlet for or simply satisfying a thirst for more money. No matter what motivates you the timing and reason for building your business must be purposeful.
Here are some important steps and considerations to determine if it’s the right time for your business to get results.
Research and Find Your Target Audience
At the heart of every great idea is who you intend to serve. Your target audience includes people who need or want your product or service which in turn can help your business succeed. A recent study published by Failory a content site focused on entrepreneurship found that 90% of startups fail. one One of the main reasons for the citation is that the product is not suitable for the selected market.
It is crucial to find out if your business has a market to research. According to the Small Business Administration (SBA) the keys to discovering your strengths and unique selling proposition and ultimately identifying your target market are:
- Conduct market research such as gathering demographic data on age population and wealth
- Analyze consumer behavior and economic trends
As you develop your business idea frequently survey your target audience to see how you can solve their problems and meet their needs. One possible way to find your target audience is through dedicated Facebook groups.
Jazmine Thompson for example started her vegan hair care brand Winnie & Co. after she couldn’t find a moisturizer for her daughter’s hair.
“When I was looking for the right product for my daughter I realized that other moms have the same problem,” Thompson said in a phone interview with The Balance. To develop vegan hair products for young children Thompson used her membership in the Facebook parenting group Talk to other mothers and get feedback on their needs. This in turn inspired her to put her thoughts into action and start her career.
Test your idea in your target market
If you have a business idea but are not sure if it will work the best way to do it is to test the waters.
In 2019 Tonita White owner of Dopely Lit had an idea for a home fragrance aimed at marketing soy candles to what she called urban consumers.
“I just kept coming back to the idea of a home fragrance line,” White told The Balance in a recent phone interview. “I need a creative outlet and I want it to be something I love and enjoy.”
The busy mother of twins decided to start small and test the market by creating two fragrances. White then created a supply budget and opened a pop-up store. After trying out her business idea and realizing that people love her product the entrepreneur decided to move on in 2020. she developed a Website and social media presence to enrich her business. Additionally White has expanded her product line to include holiday fragrances and candle melts.
Do you have the time energy and resources?
If you’re ready to start a business you’ll need financial resources and a network to support your efforts with time and energy to get through difficult times.
Time and Energy
While you may be in a rush to get your business started time is a key factor you need to consider especially when it comes to your family and professional life.
For example let’s say you’re a stay-at-home mom with young kids but not a lot of childcare. Starting a business that requires you to serve customers around the clock may not be a realistic option. Or if your career is demanding you start a business like The demands can burn you out quickly.
You should still believe in the value of your ideas. Just think about how to implement your vision in a more rational way.
If your schedule is constrained by other responsibilities create a workable and effective schedule to manage your business. This will help you feel motivated to stay in business while managing your operations effectively.
“Patience is important,” Teresa Satchell business strategy coach and founder of Kingdom Legacy Partnerships told The Balance by phone. “There are seasons of life and there are seasons of business. You’re going to have to adjust or provide less service because of life or circumstances but it does It doesn’t mean you stop. ”
Financial Resources
How are you going to fund your new business? For many entrepreneurs starting a business means budgeting for legal structures operating costs marketing and supply. As part of running your business you will incur recurring charges.
The amount of capital required to run a business will largely depend on the type of operation you are building. For example an entrepreneur who is starting a blog will have very little expenses. However if someone runs a business that requires a storefront or a lot of equipment then Business plans and good credit to fund their ideas.
As you consider whether now is the right time to start a business ask yourself these important financial questions:
- How much have you saved to fund your business?
- What does your credit look like and will it help or hinder your business?
- If you have bad credit what do you need to do to build your credit so you are ready to start your business?
- What start-up capital do you need to fund your business?
- What are your business expenses?
- How will starting this business help or hurt your personal finances (especially if you quit your job to start this business)?
Network Support
The ability to connect with others such as through social channels such as LinkedIn and industry-related professional organizations is critical to entrepreneurship.
“Before starting a business consult a business advisor to help you make an informed choice,” says Satchell. “Starting a business is a journey. Connecting with people in the right partnership will propel you to the next level. You need to meet the right people connect. ”
Seasonal Considerations
The time of year may also affect your ability to start a business. Some people may start a business at the beginning of the year believing that the new year will have a fresh start. At the same time others may think that the business should be launched when the market is right Embrace their dedication.
For example if you’re a baker it makes sense to start planning your business in the summer. Come fall you can market your business products with tasting events to get you ready for the holidays.
You’ve Made a Plan
No matter what industry you are in the best way to do business is to have a robust strategic business plan and be realistic about your ability to execute and sustain that plan. After all running a business requires dedication and understanding your target audience and the economics of your industry. prospects and your own financial capabilities.
However a strong business plan that includes your competitive and market analysis can reinforce your vision and help you bring your ideas to life at any time that suits you.
