Tuesday, 5 February 2013

Starting a business – initial planning

I’ve been looking into starting a lifestyle business to contribute towards my millionaire by 2020 goal.  As you might imagine, there is a difference between “looking into starting” and actually starting a business.  After six months plus of just looking, I was spurred into action by my need to get an ABN to purchase a .au domain name.  I’ve learned a bit about starting a business along the way.  I’ll share some of my learnings over the next few days.

Today I’ll cover the initial planning you should do, particularly before you outlay too much money.  Key items to consider include:
  • Market research
  • Types of business
  • Personal circumstances
Market Research

As you start off down the business start-up path, it’s important to conduct research into the feasibility of your business concept and strategy.

Key questions to ask include:
  • What product(s)/service(s) will you offer?
  • What prices could you sell the product(s)/service(s) for, and how much profit would that generate?
  • Is there a market for your product(s)/service(s) – i.e., will enough people purchase them for you to make a profit overall?
  • If any research and development is required, how likely is your concept to be a success?  How long will it take to develop?