Of late, an increasing number of entrepreneurs are stepping forward to quit their 9-5 jobs and starting something on there own. Not having a fixed direction before making such a leap is purely understandable, but eventually you need to give some thought into it.
In reality, starting an online business is challenging but easier than what most people think. There’s only one principle: you won’t know if it works until you actually start it.
In order to get some clarity, try answering the following questions before you hop on the bandwagon of online entrepreneurship:
Why am I doing this?
What is the precise goal you want to achieve from your business? Are you offering a product or service that touches a particular pain point of people? Or do you want to expand your existing freelancing work? Have a clear objective in mind before you start your business. Goal setting is the primary step you need to take before starting an online business.
Is it the right time?
Sometimes outside influences may not be favorable for you. Wait for the best time to start your business. It is important that you analyze outside influences such as consumption trends and competition before investing time, money and energy in your online venture.
How much funds do I need?
Money is the lifeblood of your business. Depending on the type of business you are intending to start, you need to plan and maneuver your financial resources. Consult financial experts who can guide you through the budgeting and investment process. You also need to identify potential venture capitalists who can fund your startup.
Who else is into this?
If you have a business model in mind, make sure that you are not faced by tough competition from already existing players in the market. You need to do a proper competition analysis to understand the steps you need to take for making your business stand out from the rest in the market.
What is my USP?
Similar to the previous question, you need to identify the unique selling proposition of your business. What are you selling that makes it different from the rest? Your business’ USP becomes the critical point that sets it apart from your competition. So make sure you devise a strong USP before starting.
Do I have enough resources?
Besides finance, you need enough manpower to perform specific tasks related to your business. The number of employees depend largely on the kind of business you are starting. You alone cannot complete the tasks related to taxes, marketing, web development, etc. So make sure you have enough manpower to start your business.
What is my exit strategy?
Your plan A is to start a business. But what about plan B? You need to have a clear idea about what you want to get out of the business. Always have a back-up plan so that you don’t put all your eggs in one basket.