Key Business Decisions For First Time Entrepreneurs

business

When starting a business, many critical decisions must be made.

These decisions include deciding on your target market, assessing the legal aspects of your industry, and setting realistic expectations for growth and risk. With proper planning and execution, these decisions can help set your business up for success, even in a competitive marketplace.

If you’re feeling overwhelmed, don’t worry – you’re certainly not alone. As a first-time entrepreneur, there are many critical business decisions that you need to make in order to succeed. Not all successful entrepreneurs have achieved everything easily. The fear of failure occurs to every businessman at the beginning of the journey. It is important that you can fill yourself with inspiration and be motivated in that time. Read books and articles, and listen to purpose-driven social entrepreneurs‘ stories, motivational podcasts, and videos. Inspiration will help you focus on your main goals.

We’ve compiled a list of some of the most important ones below.

Define Your Target Market:

This is one of the most significant business decisions you’ll make. Why? Because your target market is who will buy your product or service. If you don’t know who that is, you could waste time and money marketing to people who will never buy from you.

Before you can start selling, you need to identify your target market. This includes defining the demographics of your ideal customer, such as their age, gender, income, and location. You should also consider what needs or pain points your product or service can solve for them. Once you clearly understand your target market, you can start creating marketing and sales strategies that are more likely to resonate with them.

Consider the Legal Aspects of Your Industry:

Another key business decision you’ll need to make is understanding the legalities involved in your industry. This includes obtaining the proper licenses and permits and understanding any regulations you need to comply with.

Failing to do your due diligence in this area can lead to hefty fines or even getting shut down completely. Don’t risk it – consult with a lawyer or accountant who can help you understand the legalities involved in your industry and make sure you’re compliant from the start.

The Type of Business Structure You Choose:

Sole Proprietor and LLC (Limited Liable Company) are two of the most common types of business structures used by entrepreneurs and small business owners. This is a big decision because there are advantages and disadvantages to both. However, you can change from one to the other.

If you decide to go for an LLC there is more involved in regards to processes like annual filings,  state-level paper work. There are also implications in regards to Taxes,  additional costs for admin and also when it comes to how you pay yourself in an LLC the rules can be confusing.

But, there are also lots of reasons to form an llc:

  • Personal liability protection
  • Easier access to financing
  • Additional tax benefits
  • More credibility

Set Realistic Expectations for Growth and Risk:

When starting a business, it’s necessary to be realistic about the potential for growth and the level of risk involved. While it’s possible to achieve significant growth in a short period, it’s more likely that your business will grow slowly at first, and, as with any business venture, there’s always some level of risk involved.

By setting realistic expectations for what you can achieve in the short-term and long-term, you’ll be better equipped to manage your resources effectively as your business grows. This will also help keep you motivated and focused on reaching your goals over time.

Understand the Timing of Your Industry:

Timing is everything in business. And depending on the industry you’re in, the timing of your launch can be make-or-break for your success. If you’re starting a seasonal business, it’s essential to have all of your ducks in a row well before the busy season begins. This includes stocking up on inventory, hiring staff, and marketing your business to potential customers.

On the other hand, if you’re starting a tech company, you may want to wait until you have a fully developed product before launch. Otherwise, you risk getting lost in the shuffle of newer, flashier competitors.

Don’t Go at It Alone:

It’s important to understand that you can’t do everything alone as a first-time entrepreneur. Whether you need to hire contractors for specific tasks or bring on a business partner who can help shoulder some of the work, don’t hesitate to reach out and get help.

By taking the time to find and work with the right people, you’ll be more likely to succeed in your business venture. And don’t forget – there’s always plenty of help available for first-time entrepreneurs through online resources, business mentorship programs, and local organizations.

Create a Solid Business Plan:

One of the most crucial business decisions is creating a solid business plan. This document will serve as your roadmap for the early stages of your business and will help you secure funding, attract investors, and get started on the right foot.

A good business plan should include:

  • Your target market.
  • A detailed description of your product or service.
  • Your marketing and sales strategy.
  • Financial projections.
  • A list of any other resources you need to get started.

If you’re not sure how to create a business plan on your own, there are plenty of guides and templates available online to help you.

Choose the Right Location:

The location of your business can be one of the most important decisions you make. After all, this is where your customers or clients will come to visit you, and it will play a role in your overhead costs. If you’re starting a brick-and-mortar business, take the time to find a location that’s convenient for your target market and easy to access.

You should also consider the cost of rent, utilities, and other expenses associated with your chosen location. If you’re working with a limited budget, it may be worth looking for a space that you can grow into over time.

Develop a Marketing Strategy:

No matter what type of business you’re starting, you need to have a solid marketing strategy in place. This will help you raise awareness for your brand, attract customers or clients, and ultimately drive sales.

You can explore several different marketing channels, including online and offline options. And as a first-time entrepreneur, you may want to start by focusing on low-cost or even free marketing tactics, such as social media, blog posts, and word-of-mouth referrals.

Know Your Competition:

To succeed in business, it’s essential to understand who your competition is and what they’re doing. This will give you a better idea of how to market your business and stand out from the crowd.

You should list your top competitors and then learn about their marketing strategies, pricing, and products or services. Then, identify what makes your business unique, and capitalize on these distinctive strengths as you move forward.

Pricing Your Product or Service:

When developing your pricing strategy, it’s important to consider things like the cost of production, customer demand, and other market factors. You may want to start by charging a premium price for your product or service if you think you can command higher prices due to its quality or uniqueness.

On the other hand, you may charge lower prices to attract more customers and boost sales. Ultimately, it’s up to you to determine what pricing strategy makes the most sense for your business, and you should always be ready to adjust your prices as needed.

Hire the Right Employees:

If you’re planning to grow your business, you may need to hire additional employees for logistic sales positions. However, it’s necessary to take the time to find and hire the right people for the job. This will ensure that you have a strong team that can help your business succeed over the long term.

Some tips for hiring the right employees include:

  • specifying what skills or qualifications are required for the position,
  • posting job listings on online platforms or networking with contacts who may be able to refer quality candidates, and
  • conducting interviews and assessments to gauge a candidate’s skills and fit for your business.

Create a Brand:

Your brand is the image of your business that you want to project to the world. This includes everything from your logo and website design to your company values and mission statement. Creating a solid brand can help you attract customers or clients, build loyalty, and drive sales.

You’ll want to focus on several branding elements when starting your business, including your logo design, website, marketing materials, and packaging. You may also want to consider investing in professional branding services to help create a cohesive brand identity for your company.

While there are many important business decisions to make, these are some of the most crucial ones for first-time entrepreneurs. By planning and doing your research, you’ll be more likely to succeed in launching your business venture – no matter what type of business you’re starting or how much money you have to invest.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.