Considering Opening a Business? Consider This…

Dear M & M:

 

I am considering starting a business what are some things I should consider?

 

 

– Donna

Dear Donna: 

Starting and launching a new company is a big step in anyone’s life. Do you have what it takes to be an entrepreneur? Market conditions, management expertise and disrupting technologies are just some of the things that can put the best ideas or business out of business. Planning is probably one of the more important elements that should be considered for anyone contemplating going into business.

Three things one should consider; why are you starting this business, what problems are you trying to solve and what does your customer want? Many say a strong value proposition is one of the essential elements of any successful business. To be successful you must have a promise of some sort of value that your products and services will deliver.

The second half of the proposition is that your customer believes because they did business with you or your company you delivered that promise.  Developing, understanding and delivering that perceived value is very important. There are many other things one should consider like; what geographic area will you serve, what is the competition in my market, how easily can competition enter my market, how am I going to price my goods and services in addition to answering questions like what is my marketing plan?

Of course the questions don’t stop there, do I have enough money to do this, what does the bank need from me to give me a loan, what taxes do I pay, what licenses and permits do I need, how many employees do I need and what employment taxes do I pay? No way around this one we ended where we started out, lot of unanswered questions. Like I stated in the beginning planning is the most important part in starting out on any journey.

A good business plan will help you answer these questions and point the way to develop strategies to mitigate risks in starting any enterprise. A business plan will enable you to determine if it is a good or a bad idea. If it looks like a go, remember you can spend your whole life planning. But, “once you’re ready and it looks good, get out there and start doing it.” – Taylor Momsen

 -M&M

To ask your questions: Call the Small Business Development Center(SBDC) at Cochise College (520)-515-5478 or email schmittm@cochise.edu or contact the Sierra Vista Economic Development Foundation

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