5 Elements You Should Consider When Starting a Business

In these trying times, finding a job hasn't been easy. Many are struggling to find work due to the effects of the COVID-19 pandemic. It's hard for anyone to say when things will change for the better.

In the meantime, we all still have to pay bills. We need some income to support ourselves and our loved ones.

Nowadays, it's not uncommon to hear about people starting their own businesses. Starting your own business is a thrill, yet you need to consider many things when you start a business.

Check out these five common factors you should consider when starting a business. They can help give you insight into what it’s like to start and operate your own business.

Deciding your business

Your starting point is to figure out what exactly your business is going to be.

Some basics you need to be aware of are the demand for whatever you're trying to sell, who your competitors will be, and the potential to grow. This is by far not an exhaustive list either. You will need to do heavy research and weigh the pros and cons of your potential business.

Ideally, you’d want to focus on a business you know. It doesn’t have to be a hobby or passion, but something you can do well and have a unique position on.

Budgeting

This is probably going to be your biggest and most difficult factor to consider.

When you start a business, odds are you are probably starting with very little money or nothing. You might be able to get a loan or have an investor, but you might also have to put forth a good chunk of your own money.

With a limited amount of funds, you need to figure out how to stretch your budget as best as possible. What you'll need to budget for will come down to what type of business you're running.

For example, if your business involves selling any physical product, you'll need to have a budget for shipping and packaging.

Hiring employees

This one kind of comes down to the scope of work you expect to be getting. Odds are you'll probably start with just having yourself as an employee, but you might realize sooner than later that you'll need an additional hand or two to help meet demand.

You’ll want to figure out how to create room in your budget for additional employees. You’ll also need to be aware of labor laws at a state and federal level.

How you decide to hire people is pretty much up to you. As an employer, you could post job listings online, ask your network for referrals, or even outsource work.

If you outsource work, you need to consider how reliable the person or company you'll be outsourcing to is.

Marketing

It tends to get overlooked, but marketing plays a crucial role in getting the word out about your business. It'll be hard for potential customers to find you if you're not doing any promotion.

How you market your potential business will vary. There are traditional formats like creating a radio or television advertisement that can be effective.

There's also new media like running paid advertisements on Google or Facebook you might consider.

If there is one thing any new business could benefit from, it’s creating a website. Having your own website is a great starting point when you want to start marketing your new business.

Location

While people can operate many businesses online, you'll still need to factor in how the location will affect your potential business.

There might be a high demand in your local area for a product you're selling. At that point, you might want to buy some retail space to keep up with demand.

Maybe you don't have the funds to buy a retail space. In that case, you would have to rely more on online sales and place a stronger focus on shipping and packaging products.

When you start a new business, you shouldn’t make any decision lightly. About 20% of all new businesses fail within the first year, and around 25% make it 15 years and beyond.

It's a risky gamble, but sometimes it's worth it. If you feel capable enough and are willing to face the challenges, go for it. It's a great feeling when you're able to launch and run a new business successfully.

Have you ever wanted to run your own business?