Before you embark on your journey towards starting and operating a successful business, there are a few things you should consider. Investors and lenders want to see in your Business Plan that there is something about your company that differentiates it from other established businesses within its particular market. The distinction could be in the form of a new product or service in the area, a new design for an existing product, or a diminishing product or service with a new “twist” aimed at revitalizing its profit margins. A substantial amount of research should be done on existing companies within the market to inquire as to whether or not they have product lines in place that far exceed the manufacturing capacity and creativeness of those that you intend to establish. Unfavorable outcomes obtained from research should not serve to deter business owners from pursuing their goals, but rather as awareness as to the pitfalls that they could encounter in doing business in that particular market. Ultimately, the research will enable the company management team to make the appropriate adjustments.
Another characteristic of a company that has the potential to separate it from its competition is how the company incorporates community involvement into its culture. In order to do business effectively within a community, employees and management personnel must recognize that the organization has a responsibility to the community to give back in an agreed upon fashion. Not only does community involvement provide a means of establishing relationships, it may also give citizens the incentive to do business with the company at a favorable point in time. Every relationship established serves as a business opportunity that when conveyed in a Business Plan informs potential investors and lenders that a company has the wherewithal to attain customers.
Although market research and community involvement are key in solidifying a place in the market, it is somewhat more important that the intended market is large enough to sustain substantial profits. Funding sources expect to be reimbursed for their investment and without favorable projections they will not provide resources for business start-up or operations. Therefore, if during the initial phase of market research it is concluded that the market is not large enough for generous profits, entrepreneurs should explore alternate locations.
This article serves as a means to stimulate thought about some of the “pitfalls” that may be encountered during the start-up phase of any company. Starting a business can be a daunting yet rewarding task. It is recommended that future business owners seek the assistance of a professional Business Plan Writer in order to not only create a well written Business Plan, but a “blueprint” for success that includes clear-cut guidelines as to how a company will reach its goals, overcome adversity, and maximize profits.
