Speaking of profit, it is extremely important to have a business plan. Did you know that most small business don’t even have one? It is like sailing out to sea with no rudder for the boat. You will quickly become “direction-less” and it will lead to a financial shipwreck. If you have a business education or background you might be able to do the plan yourself. However, most people can’t so they get outside help. This is highly recommended. One source is to contact the Small Business Administration (SBA). They offer all kinds of services. Assuming you don’t have all the cash yourself, you will be applying for a loan of some kind. Any lending source will probably require a detailed business plan. This helps you anticipate expenses of all kinds and again, it is a must.
4. Location.
You’ve heard the phrase, “location, location, location.” Well, it is so true. In real estate “location” is everything. And it will be the same for you even if you don’t have an actual store. Let’s say you are planning on selling products online. Locations on search engines are critical. Keywords will hopefully direct customers to you. With regard to an actual store keep in mind that a franchisee has advantages in that the parent corporation knows how to pick locations. So you will need to be very careful when choosing your location. If it is a store you’re planning you’ll need to really scout an area. Get a realtor to help because, since you’re the buyer, it’s basically free. Then start asking questions such as: Will there be enough foot traffic? How many cars go by each hour? Do people have enough time to browse?
5. Competition.
And the pertinent questions continue. Who else is selling what you’ve got? If it is a store, how close are other similar stores? Do you have an area exclusive? What if a giant chain like Wal Mart comes in? Do you have, or can you create enough of a “niche” so that you can survive? With regard to the product or service itself, can someone else deliver the same thing for a cheaper cost or better quality, or maybe more features? You’ll need answers or your competitors will answer them for you and may not like it.