The facts are that three quarters of start-ups fail within the first three years, and a third of those fall by the wayside in the first six months. To give you the best chance of surviving this teething period, we have compiled the top things to research before you take the plunge, according to http://www.smarta.com.
Sole trader or limited company: Which you choose will impact on the tax you pay and how much legal and financial responsibility is laid at your door. As a sole trader, you take all the post-tax profits but you are also liable for all of your business’ financial dealings.
Size up the competition: Who else is doing what you are planning to do? How well do they do it? By studying the competition, you can learn from others’ mistakes – or even what their customers appreciate. Learn how much people are willing to pay for your product or service and how you could enhance the current offerings.
Sole trader or limited company: Which you choose will impact on the tax you pay and how much legal and financial responsibility is laid at your door. As a sole trader, you take all the post-tax profits but you are also liable for all of your business’ financial dealings.
Size up the competition: Who else is doing what you are planning to do? How well do they do it? By studying the competition, you can learn from others’ mistakes – or even what their customers appreciate. Learn how much people are willing to pay for your product or service and how you could enhance the current offerings.
If one big player dominates the market space, focus on what they don’t do well or who they don’t cater for, provide a superior service and you could grab a share of their space. Alternatively, if the market is fragmented, there could be an opportunity to launch a brand that becomes the de facto choice for consumers.
Define your target audience: Appealing to everyone appeals to no one. You need to focus on your target audience and style everything, from your website to your marketing campaigns, around them. Make sure you are targeting the right people by sending out questionnaires, speaking to your customers through social media and holding focus groups. The only way to provide a product or service people really want is to get inside their heads. Involve your target customer in the development of your business and continue to conduct tests. Consulting your customers will also make them feel like they have a voice, will breed loyalty and, if you are lucky, will increase the likelihood of them recommending you to others.
Read Full Article Here: Things to Research Before Starting a Business
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