There are many factors when doing business. To know them is to increase the chances of success in the business you are pursuing.
Cost – one must know the cost of operation and understand its profit margin from research and data. Then, the future growth must be speculated to make sure it is not a futile attempt for going into business.
Demand – to know there is a strong demand for a product or service is necessary to mitigate the risk of going into a business blindly.
Market share – to know the dollar amount per year for a certain industry gives you the chance to size up the potential of your business.
Target market – to understand the demographic, age group, income range, gender, nationality and consumers’ mindset is necessary in order to create the product or service you are trying to cater.
Season – knowing how and what time your business operates on is crucial for stocking, renting, staffing, and operating hours to determine your expense.
Subscription/Advertisement – subscribers get a monthly fee while advertisements make it free for everyone.
Patent – an important economical and strategic factor to gain a competitive edge in your business. Patents make your products and services unique through innovative research, creation and implementation. No one will be able to copy it if your creation had been patented.
Profit margin – to understand the profit margin of your business is an important step to knowing and controlling the cost of the business.
Production/Shipping – knowing the cost of doing business is crucial to knowing how much capital is needed and the profit that can be earned.
Marketing – to effectively market your product or service to create awareness and interest for consumers.
Branding – to build confidence in the eyes of the consumers through excellent customer service and superior product or service.
Revenue – to know the flow of your revenue is important to know which product or service is doing well in order to keep investing on it with R & D.
Retail/Online – having a physical location, online website or both to do business depends on the type of business you are involved in.
Retail location – a prime spot is advantageous since a hot spot guarantee customers which generates profit.
Cash flow – having cash flow sets your business at ease for rough times ahead or using it for strategic investments that can make your business thrive.
Owner or partners – owning your business gives you 100% control while having partners make it easier and faster to start your business with pooled resources and wide range of expertise at your disposal.
Connection – having wide connections give you great opportunities and resources to expand your business. Network with friends and appear at business conferences/conventions to build connections.
Niche – going on a niche gives you a strategic advantage over saturated markets. It also adds to the uniqueness of your business which makes it more sought after.
Long term strategies – long term gain is more rewarding and beneficial than short term gain. It builds a slow yet strong foundation for your business to succeed in the years to come.
Short term tactics – in order to survive; short term tactics are needed before you can implement long term strategies. Promotions, discounts and raffles are good examples.
Back-up plan – knowing that things will never go as planned is an important attribute because you will inherently create a back-up plan for the worst case scenario to improve your chances of survival.
Exit strategy – having an exit strategy ensures that there will only be minimum loss if your business is not doing well.
