What You Should Research Before Starting a New Business?

Nearly everyone reaches a point in life where they have a genius idea (and possibly even some cash, to boot) and they wonder how they can turn their fledgling business inspiration into a bona fide entrepreneurial operation.

If you’re facing this initial hurdle, here are a few of the major things you’re going to want to research before you dive into the nitty-gritty details of launching a startup company.

Note: this article will lightly touch on as many major considerations as possible. Due to the comprehensive nature of this goal, it won’t go into detail on any one particular subject. This is partly thanks to space limitations, but also due to the simple fact that many of these concepts will vary dramatically depending on each entrepreneur’s situation. Instead of looking for short and simple answers, be encouraged to take the title to heart and dive into your own independent research with the famous grit and tenacity of a small business owner.

Alright, without further ado, here are some of the most important things to research before you start a new business.

Research Yourself

It’s always a good idea to start by considering your own make-up. Are you fundamentally cut out to be an entrepreneur? It requires a certain kind of person to run your own business. Even freelancing is different in the sense that you still work for pay. As an entrepreneur, you’ll need to cover your costs, put in enormous amounts of sweat equity, and then, at the end of it all, reap the benefits.

As you size up your entrepreneurial spirit, ask yourself these questions: 

●     Can you stay focused on a project?

●     Can you take the initiative?

●     Are you good at networking?

●     Are you patient?

●     Are you resilient?

●     Are you flexible?

Starting a business is a marathon, not a sprint. Make sure you have the characteristics and soft skills to help you reach the end of the race.

Research Your Family and Friends

Along with gauging your own abilities, make sure to consider the feelings of your friends and family. It’s worth talking to a spouse, a roommate, children, or really anyone that may be significantly affected by your shift in priorities.

While their opinions won’t be quite as important in your decision making as your own feelings, they should still be carefully considered as you go about the potentially time-consuming business of starting your own company.

Research Your Partners

Choosing business partners is a critical step in the business process. Will you be going it alone or will you have support? Are you simply looking for partners that you like or for partners that have the best skills to complement your own? Make sure you have the right people in mind as you prepare to launch your business.

Research Your Customers

Always take time to research your potential customer base before you seriously invest time, effort, and money into a company. Does your core demographic actually want what you’ll offer them? Practice active listening and make sure your products or services will solve their problems.

Also, consider their interests. If, for instance, you’re pursuing the eco-friendly Millennial crowd, consider small yet powerful ways that you can get their attention through your operations as well as your products, such as going paperless in an effort to greenify your company.

Research Your Finances

Starting a landscaping business could cost you hundreds of dollars. Opening a restaurant could easily cost thousands. Starting a tech company in Silicon Valley could run into the millions.

Add up potential expenses and consider how you’ll obtain adequate funding. Do you have your own startup cash? Can you get an angel investor or a business partner to invest in your idea? It’s always important to size up the cost of starting a business before you start spending money.

Research the Law

Make sure to look for any legal rules you should follow as well, including business insurance, worker’s compensation insurance, copyright law, branding yourself and your services, and so on. If you’re going to have a larger operation with many legal considerations, it’s also a good idea to look for an accountant and a lawyer that you can trust.

In addition, make sure to research local laws and regulations that pertain to your industry, and set yourself up to cover things like payroll and taxes.

Research the Details

Consider specific details that could impact or slow down your launch. If you’re going to have a brick-and-mortar location, gather any information that may apply, such as property, financial, and tax data for a commercial property you may be interested in purchasing or renting.

If you’re going to need to manufacture a product, consider how you’ll source your raw materials, where you’ll store your inventory, and how you’ll transport products. The point is, look for the easy-to-overlook details upfront before they catch you off guard down the road and hold things up.

Research the Future

Finally, make sure to research for the longevity of your enterprise. If you only focus on startup concerns, you may end up with a company that is irrelevant within a year or two. Make sure your products are adaptable to the ever-evolving business world.

In addition, try to embrace applicable new technology, always be developing your skills, and look for ways to make a difference as a socially responsible corporation.

Taking the Next Step

Once you’ve conducted all of your research, it’s time to create a business plan. This should be done thoughtfully and should include the following:

●     Your company’s vision and goals.

●     Financial information.

●     All other relevant documents.

●     A developed marketing plan.

Make sure to build your plan with adaptability in mind. This isn’t setting your company’s future in stone, but rather providing a blueprint which you can use to turn your business goals into a genuine, successful reality.