Rab Kooner: Business adviser, Small Business BC
Before starting a business, the number 1 thing to know is if your business concept is viable.
Through market research you’ll need to learn if there is a demand for your product or service and whether growth potential exists in the marketplace. A competitive analysis will reveal who your direct competitors are, what they are offering and at what price point. This information will help you uncover your niche and better develop a competitive edge.
Depending on what industry you’re entering, you could face a number of barriers, such as licensing, accreditation, regulations, etc. Thoroughly research entry into your industry and assess whether it’s achievable. Keep in mind: the greater the barrier to entry, the less competition that exists.
To start a business you’ll need financing, so you’ll need to find out if you’re eligible. Do you have a good credit rating? Do you have collateral and equity to put towards a loan? And most importantly, are you prepared to take on that debt burden? Starting a business can be risky, so take time to assess your tolerance for risk and whether that aligns with the requirements of your industry.
And finally, you’ll need to self-assess. You might be trained in a certain industry, but being a business owner also means being a salesperson, a marketer, an accountant and a manager. What experience and skills do you have that will help you? Play off your strengths and take training in your areas of weakness, or look at outsourcing to experts.
Although you might be excited at the prospect of entrepreneurship and anxious to get started, taking the time to research and plan will give you a realistic look at the viability of your business so you’ll have a better chance at success.
