First-time merchants always like the idea of building a new business. The same feeling is also true of employees who don’t enjoy spending 8 hours of their day working. A lot are encouraged to build a company considering that you don’t need to work more than 8 hours per day within the four corners of the office. Aside from that, you don’t also need to follow your boss’s commands and earn as much as limitless income.
We cannot deny that one of the right decisions we can make this year is to run our own business. But, you should know that it is not as easy as you might think. Building your own company requires time, effort, and more money, which can leave you challenged and stressed.
If you plan to run a business for the first time, we will share essential things to consider. So, to know more about it, read further.
What Type of Business Do do You Want To Build?
Okay, first things first. You should know the type of business you plan to start and the products or services you want to provide to the buyers. Answer the question: what should I sell? If you don’t have an idea, you can choose either manufacturing, merchandising, or services.
Take note that:
Manufacturing refers to the process of using equipment, labor, and raw materials together to come up with the right product. The products you can sell in the manufacturing field include daily essentials, clothing, gadgets, cars, and many more.
Merchandising is also called distribution, trading, wholesale, or retail. The buy-and-sell concept is also covered by merchandising. One example of this field is online resellers, retail outlets, department and grocery stores, and many more.
Lastly, service can either refer to expertise and selling time. This covers marketing, IT, event organizers, professionals, and more. Also, spas, salons, transportations, food kiosks, and restaurants are all under the service field.
Know Your Target Customer
Customers give life to your business. Just imagine yourself selling products or services, and no one tries to avail of it. Would you think you can gain profits from it? Certainly not.
After knowing the type of products or services you want to offer, the next thing you should do is to thoroughly research your target market. Always take note of this quotation “A product or service for everybody is a product or service for nobody.”
Another thing to consider is the location you want to build your business. Ensure that it is surrounded by people who are willing to spend their money in exchange for your products or services.
Capital refers to the value or amount you are willing to invest in your business to start operating. You can use non-cash or cash capital. Listing down the possible expenses your business requires, including operating expenses, lease payments, renovation, assets to buy, and more, is the best way to know the amount of capital you need to use.
Planning the assets that your business needs to manage is another thing that should be considered when planning to run a business. Your assets may include a vehicle, furniture, equipment, and computer. Aside from the number of assets you need, you should also list their price range to prepare your pocket.
Take a look at your surroundings. Look for a company or someone who can be your direct supplier. This step is critical as you will invest not just your money but also your trust. When looking for a supplier, ensure the price they offer, operating hours, reliability, and location.
Outsource or Hire Employees
Business owners who are in the industry for many years know how challenging managing people is. This could be the possible reason behind the high demand for outsourcing. Hiring employees or outsourcing is also essential to keep in mind when trying to formulate a business.
If you choose the former option, you should also consider the possible employee’s compensation and government regulations that your business should comply with. These include Pag-Ibig, Philhealth, SSS, and DOLE. On the one hand, if you consider the latter, you should also focus on the company’s reliability and expertise that you need to outsource.