Starting your own business requires a lot of careful thought and back breaking hard work. A start up venture will demand a lot from you so you must be absolutely sure of your environment and customer base before you start off.
9 questions to ask yourself
- What are the reasons for your going into business? Is it a temporary urge which will fizzle out soon or do you have a solid backing behind your idea?
- What makes your product/service offering unique? How do you feel about the relative merits of your offering Vis a Vis your competitors? What is it that can draw customers specifically towards you?
- How do you intend to finance the start up costs of your business? Do you have adequate means of covering your costs?
- Do you have enough dedication and time to devote to your business? Are you going to quit your full time job to go into business?
- Do you have sufficient space to devote to your business? Are you going to operate from home or are you considering renting office space?
- Are you comfortable with self promotion? Business people have to hard sell their products and services and if you are the shy reticent type, you really need to weigh your options.
- Are you disciplined and self motivated? There will be no seniors or bosses prodding you on so you need to take charge yourself.
- Are your family members willingly supporting you in your venture?
- Lastly and most importantly, are you willing to make personal sacrifices of time and space to fulfill the needs of your start-up?
PEST Analysis (Political, Environmental, Technical and Social) factors are important in analyzing environmental suitability of your business venture.
Political factors will include new government rules and regulations, subsidy policies and investor avenues.
Economic factors will include overall economic conditions of the country, consumer spending patterns and currency values.
Technical factors will include technological change. For example, all businesses looking forward to open customer service departments have to adapt to mobile technologies due to the surge in usage of smart phones.
Social factors include cultural preferences of your target group and the changing social dynamics of the domestic environment. Any threat in these areas should carefully note and trends studied before jumping into business.
SWOT analysis or the analysis of the strengths, weaknesses, opportunities and threats of your business, is something that you should compulsorily do in order to judge the current position of your competitors. SWOT analysis will let you know the internal dynamics of your competitors and allow you a peek into what it would be like to get into their shoes.
A cheering fact is that the Indian Government has worked a lot on pumping FDI (Foreign Direct Investment) into the SME sector. So, now is a good time to go into running a small business in India.