If you want to start a company, be your own boss and join the ranks of successful entrepreneurs, it requires a solid business idea, lots of hard work and a fair amount of luck. There are risks and challenges, but the potential payoff is worth if for many people. Success is built on putting thought and research into the idea long before you even get a business license. Here are several important things to consider before you open the doors to your new company.

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  1. Research the Market

One of the biggest killers of startup businesses is a poor understanding of the target market and how to reach it. You should consider your business idea (the products and services you’ll be selling) and determine if there is a market that could support your business. If you will be joining a crowded market, try to find a way to narrow your target audience.


  1. Plan Around the Recession

The economy hasn’t been great for years, and it could still be awhile before it picks back up entirely. Consider the industry you would be joining and whether it not it could survive tough economic times. Specialty food, alcohol, repair services and tax-related businesses are examples of industries that generally fare well even in a recession.

  1. Find Funds

Your business will need funding, especially when just starting out before you have any income. Think through projections of your capital requirements and start looking into sources for funding.

  1. Write it Down

If you want your potential company to succeed, you need to first make sure it works on paper. Take the time to create and write down a step-by-step plan for starting your business and see if it makes sense for your life, your location and the economy.

  1. Think About Pricing

Whatever goods or services your company will sell have to be priced correctly in order to gain a share of the market. Look into comparable businesses, learn about pricing and create a strategy to make your company competitive.

  1. Commit to the Lifestyle

Especially in the first few years of owning your business, your whole life may revolve around the company. It’s a familiar story among successful entrepreneurs and you should be sure you are willing to commit to that lifestyle before starting your business.

  1. Sell Your Idea in a Positive Way

Consider the basis for your business idea: can you sell it to potential customers using positive language, or does your strategy rely on negative talk about competitors? A business idea with a good chance of success should be able to stand up without resorting to insulting the competition.

  1. Create a Marketing Strategy

You don’t need to know all the particulars of your advertising, but you should have a general strategy before you launch your company. Look at other successful businesses, whether in your industry or not, and learn how their marketing campaigns work. For example, the Hampton Creek company uses their website, social media accounts and short videos to advertise not only their products but also the founder’s vision and future goals.

  1. Double Check Your Passion

Most successful entrepreneurs will tell you that you need to be passionate about your unique idea, not simply the appeal of owning a business. Starting a company from scratch is extremely challenging and many people only stick with it because of their passion for offering something new, solving a problem, or making a difference in a specific area.

  1. Be Unique

There are a lot of good ideas out there and countless people starting businesses all the time. Spend some time looking around to see whether or not your business idea is already represented in the market. If patents or copyright law would apply to your products, check to see if someone else is already pursuing your idea. It’s better to know upfront than risk a lawsuit down the road.

Starting a company from the ground up can be the ideal career for many people. It’s hard work and requires a large amount of commitment and persistence, but the rewards are numerous. If you want to start a company, take the time to consider all the aspects before investing finances or quitting your day job. If you do the work first to find funding, learn your target audience, make a business plan and create a marketing strategy, you’ll have a solid foundation on which to build your company.

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