Business Startup Decision-Making
A business startup is one where the organization goes through its exciting and challenging early stages. It has inherent characteristics of high uncertainty and risk. A startup is usually a brand new company with new (often minimal) funding but can also be an offshoot of an existing business with backing from the parent.
Of course, this means a lot of decision-making – the process of making choices based on a set of criteria and choices. It can be a rational process, involving the weighing of factors such as cost, risk, and benefits. Additionally, it can be an emotional process, involving the gut feeling of what is right or wrong.
Some skills and traits that can help with decision-making include:
- critical thinking
- being able to weigh pros and cons effectively
- being decisive
Additional skills needed for a good decision maker are being able to handle risks, and being able to stay calm under pressure.
Factors to consider in starting a business
The decision to start a business is a complex one that involves many factors. Some of the most important considerations are skills and experience, type of business to start, amount of capital needed and risks involved.
Skills and Experience
First, assessing your skills and experience is important to determine if you have what it takes to run a successful business. Consider your previous work experience, education, and personal qualities to decide if you are suited for entrepreneurship.
Determine what type of business to start
The next step is to determine what type of business you want to start. Consider your interests and passions to choose a business that you will be excited to work on every day.
When you are undecided on which business to start, you might literally spin the wheel after adding them to a random selector tool to help in choosing the type of business you would like to start.
Many entrepreneurs have taken this route when faced with several options but just couldn’t decide between them.
Start researching the industry
After you have chosen the type of business you want to start, research the industry to learn about current trends and the level of competition. This information will help you develop a unique selling proposition for your business.
Amount of capital required to start the business
This is often the most important factor when deciding whether or not to start a business. If the amount of capital required is too high, it may not be possible to obtain the necessary funds. Many entrepreneurs elect to use their own savings or take out a loan or mortgage to get up and running.
Steps when starting a small business
1. Find a business idea.
When starting a business, it is important to first find the right market opportunity. You need to do research and find a niche market that is not already saturated with competition. To do this, you can start by looking at trends in your industry and seeing where there is potential for growth.
2. Write a business plan
This document will outline your business goals, strategies, and how you plan on achieving them.
3. Find funding for your business
When starting a small business, one of the key steps to consider is funding. There are a number of ways to fund a small business. They include; personal savings, loans from family and friends, credit cards, and small business loans from banks or other financial institutions.
4. Pick a business location
A good business location is essential for the business to be profitable. Consequently, you need to consider your customer demographics, access to roads and the cost of renting in the area chosen. It may even be that your venture is completely online and needs no actual physical presence with home-workling the preference.
5. Choose a business brand name
Your business name is how customers and clients will identify your company. In addition, the local government authorities register the business. Finally, this gives you legal protection and ensures that no one else can use it. Be aware that there are many registered businesses and your preferred name might already be taken.
