In this time of economic struggle when everyone is already a consumer, it is a perfect time to start a business. I think that the best way to succeed economically is to establish your own network of suppliers and customers, thus building a chain of consumerism. Although anyone can start a business of their own, not all who took the risk became successful. I am a micro entrepreneur and I have personally experienced the ups and downs of a startup business. Unless it is a partnership or a corporation, nobody can save you from downfall except yourself especially on a sole proprietorship. In establishing a business, it is crucial to know some important factors to consider avoiding loss of resources and further damages.

 

Nature Of The Business

Identifying the nature of the startup business is the most basic requirement. Define what you are most passionate about. I think that the biggest mistake that most businessmen do is that they try to build a business based on the demands of the market. Although this is a principle based on reality, it limits the creativity and diversity of products and services. Before I started my online apparel business, I made sure that all of my products are unique from the competitors. I also made sure that my service is a notch higher than other business owners operating their stores of the same category. I decided to support local products and advanced my customer service efforts to a higher level. It took a while before my loyal customers noticed my cause. But when they were able to appreciate, they started bringing in more prospect clients and the business has become an instant hit in just a year.

 

Target Market

After deciding on the nature of your business, identify your target market. Your audience determines the line of products or services that you will be selling or offering. Do you intend to focus on the kids, teenagers, young adults, adults, or the senior citizens? Are you targeting students, young professionals, executives, or plain housewives? Will you be dealing with male or female customers, or both? These questions are important because once you have carefully identified your target market, it is easier to decide on the line and number of products, pricing strategy, and marketing and advertising actions. For my online apparel shop, I thought that it would be practical to concentrate on the young adults and teenagers since there will be unlimited opportunities to experiment on products. I like being trendy and by choosing these audiences, I know that I have made the right decision.

 

Location

If it is a prime commercial center, expect that you will be incurring higher expenses on store rental and taxes imposed by the local and state governments. But these types of locations somehow guarantee you of sales depending on your product and market.

 

Profitability

Small Business StartupYou should not expect to have 100% profitability for your startup business but the idea is that your gains should be increasing every period. If not, then you must consider re-aligning it.