When starting a business, it is advisable to explore several things. I would use the technique of analysis of the business idea from four broad but basic perspectives. These include the customer, company, the competitor and the collaborator. It gives a chance to make a scrutiny of the business idea before dealing with the brand development. Scrutinize the company by thinking of this idea in terms of the service/product features, the benefits it could have to the customers, the personality of the company, the core messages to be relayed as well as the core premises that will be made to the customers.
Secondly, scrutinize the customer. In a business, there are three different customers that one may need to keep in mind in relation to the business idea. These include the influencers who are the organization, the individual or the group of people who have an influence on the purchasing decisions, the purchasers who are persons who write the check or make the decision to buy and finally the users who are a group of people who interact directly with the service or product.
Third, the competitors need to be looked at. These include the primary, secondary as well as the tertiary competitors. One needs to know how to tailor their services when competing with each of these groups of competitors. Finally, the collaborators are the last to be scrutinized. These are the people who may have an interest in your business but may not be directly rewarded for the success that may be realized by your business. These can include associations like the media, as well as other organizations that are responsible for selling your business to your customers.
The technique I will employ is the SWOT analysis meaning analyzing the strengths of the product, service or industry, the weaknesses of the product which might include the design flaws, or the service which include the high prices and as well analyzing the potential threats that it may have on the economy. This technique enables one to have an understanding of the flaws that the business might face as well as the strengths, the product development, the cost external factors may have such as politics, exchange rates, culture and many more. SWOT analysis also enables the entrepreneur to understand quickly if their product or services will succeed in the current market environment. With this technique, I can be able to tell whether my idea has any issues that need to be dealt with before its execution.
I got my idea of the business from a friend who had tried it before. She took her time to explain to me the concept and what it entirely involved. I got to understand the cost of purchase of the commodities and the expected interest, the potential customers as well as the challenges expected. This enabled me to locate my business in an environment where I could be able to maximize on my profits. I felt this to be a good idea because I got to witness the same business succeed.The basis of any business is to ensure customer satisfaction and profit maximization. I believe this is exactly what my business will achieve.
Every business faces different types of challenges. Thus, before starting a business, it is fair enough to critically find out the kind of challenges that you might face in line with the business and how you as well intend to deal with the challenges.
One of the challenges I expect to face is the issue of hiring the employees. Competing and finding the top talents can sometimes be tough. The employees are set to move from business to business in search of a better pay. To solve this issue, I have opted to hire fresher candidates since they have a chance of staying longer in the business and as well pay them a fairly comfortable salary and increase it once the business grows.
The second major problem is the increasing profits. It is common for small businesses like mine to struggle with the increase of profits and cash flows. In order to deal with this, I have opted to consistently provide quality products and services so as to attract and maintain my clients. The final problem I expect to face is the issue of government regulations. This is however a problem I expect to face later in the business as the business grows. Thus, I try as much as I could to comply with all the government regulations that have an impact on my business so as enable it to run smoothly.