Did you know how difficult it is to startup a business? Most people dream of having their own businesses, they think it’s a piece of cake to run a business. They don’t know the half of it. Every person, who has a job thinks that running a business is easy and they only think look at the positive aspects of running a business. They fail to see the effort and hard work, that one has to put in it to make it work.
According to recent statistical reports, it has been observed that more than 40% of the startups fail to even make it through in their first year of business. Another research report shows that even though businesses survive their first year but more than 70% of them fail within the first 5 years. Other reports show that startups, which are lucky enough to survive those 5 years, over 90% of these startups fail within ten years. Now, looking at these stats, you can clearly observe that business organizations have a much higher chance of failing rather than succeeding.
However, if you still wish to work on your own startup, then you should go for it because having your own successful business, there is no achievement like it in the world. And, if you have the capability of learning from the mistakes of your predecessors, then chances are that your startup may end up surviving even more than ten years as well. Well, if you are someone, who is looking to start his or her own business then here are some tips for you, which can help you do that.
Read the Market
The first rule of business is to understand the market in which you want to operate in. let’s suppose you want to deal in cow skin, then you need to know about all the competitors in the market, who are putting cow skin for sale in the market. See, the number of competitors in the cow skin market or industry will help you in preparing for the competition, which you will certainly have to face, if you are determined to operate in this market.
Furthermore, you also need to understand other aspects of the market as well. You will need to see, whether the product, which you are selling is a luxury product or a need. Now, cow skin products, such as leather goods may be classified as luxury products in some parts of the world, whereas they may be considered as a crucial need to survive in other parts of the world, where the climate is usually cold all year round.
Moreover, one of the most important aspects of the market is your customer. Knowing what your customers want, how much they are willing to pay and what is exactly what they are looking for from your products, is something, which you need to be extremely mindful off. Now, if you are someone, who is planning to make finished products from cow skin then you will have a different class of customers because you may be dealing directly with the consumers. However, if you start trading the same cow skin in bulk quantities then you will have to cater to a completely different class of customers.
Focus on Cost
See, depending on your market and your customers, you will have to keep the cost of your products in mind. Now, if you are catering to a class of people or customers, who are comfortable in buying high priced cow skin products, then quoting a low price to these customers will be a mistake. However, if you are targeting the masses then you may have to keep a lower price, which will come down to your ability to maintain a lower cost of production.
See, whether you are setting a high selling price or a low price, either way it is always good have a complete control over your cost of business operations. This will allow you to maintain a healthy profit margin, which can help you survive in the industry for a longer time than most startups.
Focus on Quality Hiring
Yes, if you are looking to increase your sales then you will need talented sales personnel. If you are looking to satisfy your customers then you will need to have a highly professional team of customer support executives. If you are interested in keeping a good healthy financial position of your company then you will need talented and intelligent finance professionals to work with you. If you want you create an amazing brand image for your business organization then you can only do this by hiring exceptionally talented marketing professionals.
The point is, quality human resources help in bringing about the best results for your business organization because it is your employees, which are responsible for running your business’s operations and if they are highly professional then the chances of your business organization expected to perform in a much better way as compared to a business organization, which is not investing in high quality human capital.