5 Principles You Need to Know Before Starting a Business

Written by Chloe Harwood

Are you thinking of testing the entrepreneurial waters? Before you take the many little steps that will (hopefully) result in you being a successful business owner, it’s good to have an idea of basic business principles. Read on for a basic overview of some terms you will want to be familiar with as you get established.

1. Competitor Research

Competitors aren’t just businesses that run independently of yours that have no impact on your business other than how many customers you each attract. Though to some degree it depends on your industry and the attitude of your competitors, you can generally assume that as a new business on the scene, every eye will be turned to you to see just how serious you are, and you may even find that there’s a push to encourage you to exit the industry before you get a foothold. Knowing as much as you can about your competitors before you start can help you make decisions and plan ahead, so make sure you at least do the basics like a company search/ASIC search. If it’s something you plan on taking seriously, it’s worthwhile selecting specialised software from a reputable company like GlobalX Legal Solutions – visit their website to check out exactly how their software and online solutions can benefit your business.

2. Strategic Planning

Strategic planning is the term used to speak about an organisation’s process where it defines what its goals and objectives are, and the steps they will take to reach them. It is often considered an integral part of creating a strong, well-positioned business.

3. Effective Execution

Effective execution is the process where you follow through with what you say you will do, in a way that gets the results you wanted. Anyone running a business needs to get used to the idea of actually acting on plans – big ideas are only half of it. Implementing ideas in a timely and effective manner can be challenging, so make sure you are comfortable and ready to act when you follow this path. Procrastination is something you simply won’t have time for!

4. Testing

Testing will become a common aspect of your job – whether you are trying optimise your website, find the logo design that works best for your business or simply trying to choose products to add to your offering, testing is the process that saves you time and money. In the online field, A/B testing (or split testing) is common. This involves using one option as a control and another option, which will generally have one variance, alongside it to see which option achieves goals more effectively. This is only one type of testing – it is worthwhile researching which type will work best for your needs.

5. Entrepreneurial Culture

No matter what type of business you want to start, you probably have a vision. That vision might be of the cool workplace setting where everyone has a clever nickname, or it may be a corporate environment where everyone is professional and sharp at all times. No matter what you want from your business, encouraging an entrepreneurial culture is the trend at the moment. Having an engaged, interested and creative team by your side will almost always win out over robotic employees who work from scripts and templates.

Starting a business is hard work, but with the right attitude and good decision-making, it is possible to live your dream. Have you been part of a start-up venture? What would you add to this list?

About the author

Chloe Harwood