So you want to open a new business? You’ve done your homework, now it’s time to start putting it all together. The first step to open a new small business is to determine your financials. How much money do you have to invest, and what kind of resources do you have available to you? These are important questions that must be answered early on, so you know where you’re headed.
There are many other factors that go into determining your startup costs and business landscape, but for now, we’ll discuss just the basics. The first thing to look at is your location. Is there room for your new company somewhere, or is there competition nearby?
One of the worst things that could happen is if you started up in a neighborhood that is populated by other new businesses. The other unfortunate byproduct of having to compete with existing companies is that you’d probably lose customers. The startup costs and marketing costs would pale against those losses. It would be a total waste of time and money. So it’s best to avoid neighborhoods where there are lots of existing small businesses.
Before you even open your doors, you need to determine the level of startup costs that you’re willing to accept. This is the first thing that any good consultant will tell you to do. The only way you’ll be able to determine this is by consulting services. They’ll ask you a series of questions, such as how big your budget is. They’ll want to know your estimated revenue, your target customers, how much inventory you’ll need, and your target demographic.
Once you’ve figured this out, you can start your analysis. But remember that even if you find a nice, thriving small business landscape, there are always two sides to every …