 Re: Starting a new business
Hi,
the advice listed so far is excellant, market research is critical and also positioning the product to be less luxury would help.
Another angle to take on this is to think about what level of risk you will be taking. Many of the Soloists on the site start their businesses while still working part time, this ensures at least some income while they work on the new business. Therefore reducing the risk.
You obviously have concerns so make sure you deal with those concerns before starting. You need your head in the game and having these worries hanging around with no plan to deal with them is one way of distracting and demotivating yourself.
My recommendation is do a business plan but also include in it your worries and how you plan to deal with or minimise those worries. Plus a contigency plan would be a good section to include in the plan as well. Ask youself questions such as:
1. Can I fund this business for up to 2 years if it takes that long to build
2. Can I fund the business if it takes off rapidly and you need extra stock etc
3. How do I manage my time if I work part time elsewhere
4. What is my exit strategy if it does not work out
By planning for various levels of success (not just the bad stuff) you can help keep yourself realistic and your feet on the ground.
One big thing for new businesses is over excitement. They see a bit of cash coming in and start buying new cars, offices, laptops etc. In tough times you need to keep your overheads low and having high lease and interest payments are overheads you don't need. This is especially so when you have concerns over the economy and how your startup business will go.
Do your research and planning, analyse the results and make your decision!
Hope that helps, it was a bit longer than intended but that's how it goes sometimes.
Good luck,
David
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