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BY VARUN RAWAT

Basic considerations
in setting up a
business
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Many people dream of owning a

business, but actually starting one takes
considerable time and effort. According
to the Chamber of Commerce,
approximately 400,000 small businesses
are created each year, and only about
50% of them survive past the five-year
mark.

To increase the odds that your business

will succeed, proper planning is
essential. Here are some key
considerations when starting a new
business.
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1. Demand for the Service or

Product
Your business has to provide a
product or service, and for the
business to be successful, there
has to be a demand for the
product or service.
Gauging the demand for your
service or product will require
some research, but it will help you
determine whether your venture is
viable – and prove its viability to
investors. For more information on
how to gauge the demand, check
out this article from
Business2Community and this
article from Finance & Commerce
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2. Pricing
Pricing is tricky. If you go
too high, you can lose
potential customers, but
going too low can also
cause problems by making
people think your product
is cheap or low quality. You
need to find the sweet
spot. For ideas on how to
figure out your ideal price,
see
Examples of High and Low
Pricing Strategies
from Chron.
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3. Competition
Your business will have
competition. You need
to understand your
competition, including
their strengths and
weaknesses. This will
help you figure out
what you can offer to
customers.
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4.Location
Location can make or break
a business. The ideal
location will depend on what
type of business you’re
running. For example, do
you need foot traffic? Or is it
more important to keep
overhead low with an
inexpensive locarion?
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5. Marketing and Advertising
You need to get word out about
your business, and marketing
and advertising can help you do
that. These days, you have a lot
of options: social media and
content marketing, billboards,
online ads, television
commercials, radio
commercials, flyers, and more.
When selecting your strategies,
you need to consider your
budget as well as your
audience.
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6. Business Structure
Businesses can be
created using different
structures, including sole
proprietorships,
partnerships,
corporations, and limited
liability companies. Each
structure has its
disadvantages and
advantages.
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7. SWOT Analysis
As the business owner, you
should have a great deal of
confidence in your business
– but you’re not exactly
impartial. An unbiased
assessment can help you
form a realistic view of your
business and what it will
take to succeed.
One way to do this is with a
SWOT analysis. SWOT stands
for Strengths, Weaknesses,
Opportunities and Threats.
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THANK YOU