Start up a business

1. Products and market potential - Be clear about what you are selling. Do something which you are familiar with. Clearly define target market for products. If it involves the mass market, examine the competitiveness and selling point of products. Keep a competitive edge.
2. Survey - Conduct surveys / studies to gauge demand for products and industry landscape.
3. Business direction - Be clear about the business direction. Set short, medium, and long term targets. Business plan / model has to be clearly articulated and defined.
4. Potential tie-ups - Assess whether you need a partner for your business to improve the value add. But be mindful when dealing with interest among partners as there could be conflicts which may negatively affect the business. A written agreement is crucial to protect one's interest.
5. Cost management - Managing cost is not easy but it is a huge factor in determining profit margins. Figure out the cost to purchase facilities, inventory, basic expenses every months and also the number of products you need to sell to cover cost. Do not hire employees untuil you are sure you have recurring business orders. Record all expenses.
6. Office - Having a physical office set up is no longer a requirement, especially when the business is small. Rental is a huge cost factor.
7. Funds - Examine various funding options that best suits the business. Find out opportunities and incentives for funding by various government agencies. But it's good to have initial capital (at least to sustain business for 6 months) during the start up stage as it lowers debt and is sound risk management. Do not depend on selling your products first as not every vendor is a good paymaster. Receivable periods can sometimes take up to 3-6 months.
8. Branding - Think of a preferred brand image suitable for the target group. Having a logo and tagline is a must to differentiate oneself.
9. Marketing - This is crucial aspect. Consider setting up a website, blog or utilising social networking tools to connect with consumers to maximis the reach of products and earn feedback. Nowadays, it is no longer expensive to participate in business fairs. Be on the lookout for there opportunies.
10. Rules - Understand the rules and find out the necessary approvals and requirements to ensure all the administrative and red tape issues do not hinder the business.