With the end of the recession, its time to reap some more widespread benefits of the boom. 2011 is hence supposed to be the year of stronger demands and burgeoning business opportunities.
Common Mistakes in Starting New Business
Lack of Research The most common startup mistake is a lack of knowing the wants and needs of future customers.
Being Product Centric Rather than Consumer Centric Several entrepreneurs are so captivated by their "idea" that they focus entirely on the product and the enterprise. Later they are forced to learn that people do not automatically buy products that the entrepreneur expected them to love!
Overestimating Revenues Another common mistake people new to business make is overestimating revenues and underestimating expenses.
Being Too Trusting Most small business first timers trust everyone around them and listen to all the noise. Take the advice but don't live by it. Your two best friends in business are your accountant and lawyer!
Giving Up Easily Failure is part of owning a business. But as an entrepreneur, you have to put failure in a category that is temporary. Failure is but one of many rungs on the ladder of success.
The picture appears to be quite rosy, but it doesn’t make the task of establishing a new business venture this year any easy.
On the contrary, the business environment is bound be to more competitive due to a sudden influx of new entrants who had been discouraged by economic slowdown until recent past. So, how can a novice enter the market this year? The Money Times finds out for you.
Most Promising Sectors of 2011
Though there is bound to be tough competition for anybody who enters the business, there are a few sectors that show a very high growth rate powered by a significant rise in demand.
A high growth rate hence translates into better business opportunities for a larger number of entrepreneurs. It can therefore be said that starting business in these sectors could be immensely profitable. The following is a list of these sectors:
-Management and technical consultancy service sector
-Electronic news and information sector
-Home health care sector
-Software publishing sector
-Freelance writers and artists
Your Business Proposition
Though economists have a strong feeling that the above mentioned sectors should do well this year, it is not the sector that so much determines the success of a business as much as its central idea.
Even manufacturing or selling a pin can be immensely successful, provided you have the right idea to do so.
Your business proposition or idea is what will determine its success or failure in the end. It’s the uniqueness of your business idea that should be able to single handedly propel it, irrespective of the sector in which you wish to enter.
Branding Your Business Idea
There is definitely a lot in the name, when it comes to business. You must select a good name for your business idea. This is what will eventually sell in the market and determine your profitability.
So the name better be good, something that your target customers can easily relate to.
Financing Your Business
This is perhaps one of the most important factors in starting business. Important because, in most cases an entrepreneur would require the funding to be done by various sources outside his business, such as banks.
He would be required to write down his business plan in black and white. Such a plan should be promising, easily comprehensible, convincing and at the same time capable of adding value to an existing need to target consumers.
Banks should find funding your business a profitable venture, only then they will fund it.
There would a large number of painstaking and cumbersome legal procedures that would need to be addressed before you can actually kick start your business.
Be ready to carry them out. These legal procedures might include:
-Getting various licenses
-Getting your business name registered
-Legal issues with the form of ownership you choose, and so on.
If you have the passion, motivation and faith in your self, there is nothing under the sun that can dither you from achieving your goal. Go ahead and make your dream business a reality!