Every business venture involves processes and elements that contribute to its startup and success. Some may argue that business management is an art that requires experience, and while this is quite accurate there also is a scientific aspect that involves a mostly unchanging set of rules and principles that one must follow to ensure the success of their business.
There are several industries or disciplines and they all have their differences in operation but the business and financial aspects pretty much follow the same set of definite rules and principles. And because of these principles there are defined things that you should have or do and things that you should avoid—a checklist of sorts. So here is a checklist of things that your startup requires, based on business laws and principles.
Table of Contents
Viability
The viability of a business lies in its ability to make profits over a long period. The more profit you make each year, the more viable your business is said to be. A business checklist (like the one contained in this article) is a way to evaluate how viable your business is.
Before commencing any business venture, you must check:
Market Conditions
Carry out market research to find out if there is a market for your idea. Find out how big the market is. This determines your potential profit margin and will help you set more realistic revenue goals.
Your market research should also provide insights into the factors that shape the market and the depth of each factor’s influence. You should also find out if there are going to be any changes to these factors and by extension, the market in the near future. For example, if your business supplies computer parts to companies in China then a tense relationship between the US and China may harm your market. Something similar occurred via the ongoing trade war.
Startup Costs
Market research provides enough information for you to arrive at a startup estimate that is close to the reality of the market. Your startup estimate should include office space, pet product marketing insurance, legal expenses, employee salaries (if any) and other expenses that are unique to your business.
Operational costs, although not always part of startup costs, is another element that you should plan for from the start. Businesses do not usually earn profits one the first day or week. Some take years before they become profitable and in that time you have to provide funds to cover operational costs.
Product Feasibility
Market feasibility identifies market conditions, product feasibility helps determine whether or not customers will receive your products well. Product feasibility studies give insight into how well your product will meet customer demands—and this is crucial to sales.
One activity involved in product feasibility studies is user testing. This involved allowing a select group of people early access to your product or service. These people use your product and then provide useful feedback. This is helpful especially for businesses providing tech solutions.
Finding a pool of users that will provide useful insights may prove difficult or expensive for a startup. In cases like these, the most viable choice is companies that user testing alternatives. This is a way to get feedback from your target demographic without going to market.
Marketing And Sales
Cashflow is the lifeblood of any business and is only provided by sales. Businesses that are just starting may be able to go a while without making sales but if after a while they still cannot make sales, then it’s downhill. Thus, you should have a clear cut method of making sales from the get-go.
Your entire sales structure, everything from marketing to conversions and everything in-between, should be determined from the start and be regularly evaluated. When it comes to marketing, giving out promotional items like pens, books and business folders is a good way to create a sort of subtle awareness, or it could be used in combination with a more elaborate marketing campaign.
