Starting a small business is an option for individuals who want to be their own boss. You have the freedom to manage your business as you see fit, you can shape your brand’s philosophy and creative decisions without having to answer to anyone. However, the greatest struggle is keeping the business alive. You do not have a safety net. You do not have decades’ worth of brand loyalty.
Before you can become significant, you need to have a solid foundation. Here are three things you should achieve before thinking about opening a new store or tapping into a new market.
Assess the kinds of clients you have and create a breakdown of the sales volume per account. This list is not for you to treat individuals differently according to their patronage, but more for you to understand that how you need to make up for the loss if one account is gone.
There are two kinds of customers: the entrepreneurs and the consumers. The entrepreneur relies on your goods and services to sustain their business. They are more likely to be repeat customers and can easily transition into a partnership. The consumer uses your products and services for themselves. They are more likely to be a new customer. They can be the kind that comes by when they need something but will not come back.
You need to have a decent balance between catering to entrepreneurs, for their bulk orders and regular business, and to consumers, for the potential of their repeated business and recommendation. You know you have a consistent client base when you achieve your weekly/monthly quota without any extra events or sales.
The other thing you need to have is financial stability. You can have a steady stream of clients, but still, be functioning at a loss. It is crucial to expand the business when you know you have a following; to strike while the iron is still hot. However, you need to pay your overhead costs and any loans you might have taken to start your business. Even if the loans you took are informal, like extra help from your family and friends, the expansion can wait. Plan your investments with companies like www.gsmaccountants.co.uk and you will gain financial stability over time.
After you have a consistent client base and your business can absorb the costs of expansion, you should not move forward without proper research. Whether you are making an online store or physical shop, you cannot assume that your first business model will work for the new one. Update your market research, look at how your competition is doing, and scope out the environment.
You should also do the same research if you intend to tap into a new audience. Different age range, gender, or occupation—you should be able to have enough research to warrant branching out. You might find a niche market you didn’t know existed. You could expand your goods and services in a way that more people, even your original market, can enjoy.
Don’t aim for trendy businesses, aim for a sustainable one.