Take a Holistic View for your Start Up

It is common and often recommended that someone who wants to start a business do so in an area that is related to the field he or she has expertise in. Thus an IT savvy person might want to develop a website or an App as a start up idea related to the sale of products. Sure, an App or a website is an excellent idea. You can sell your product or service and collect payment online or through the App without much hassle. Thus the would be entrepreneur thinks that the start up idea is ready to launch once the website or App has been developed. That could be true if your product or service can be delivered online and payment collected likewise.

In many cases, the product is physical and has to be delivered to an address locally or overseas. If the start up is to be successful, it has to sell a significant quantity of the products offered. In the beginning, when sales are low, the entrepreneur could just wrap the items from home, and proceed to the post office to mail the parcel. As volume picks up, there comes a stage when it is no longer feasible for the entrepreneur to continue with this method of operating.

First, the large quantity of products to be stored for delivery can no longer be kept at home given the limited space. Secondly, you are unable to pack and label the items for subsequent delivery all by yourself. Thirdly, it takes multiple trips to bring the packages for delivery to the post office.

In other words, you find that you now need an office and a store, and need to employ workers and perhaps even vehicles to do deliveries. What turned out from a simple idea to sell products online or through an App has exploded into a full fledged business. Perhaps you are thinking, if the quantity of products that you can sell shoots up, money will be rolling in. Thus the situation is, in your opinion, a pleasant problem.

Alternatively, you may think that you can control the situation by not letting the business grow too big. In other words, you want to be able to run the business just by yourself without employing workers. Sure, that is a possible option. With that option, you may be able to make enough money to possibly replace the salary you can earn working for someone else. However, you are not regarded as an entrepreneur but more a self employed person.  At StartBizUp, the focus is on would be entrepreneurs, not for self employment. There this is a not a viable option at StartBizUp.

Also you may be wrong in thinking that higher demand for your products is a pleasant problem. The low prices that may make sense when you are doing everything yourself may not be adequate when you factor in all the associated costs of a full fledged business. It is therefore important from the onset to have a holistic view of what the start up will be like in three years time from its launch. Thus to find out whether the start up is feasible, the costs involved must therefore include everything. The costs of office and store, employees and perhaps vehicles plus the entire running cost  must therefore be factored in when doing the financial projections. Only then can you decide on the pricing of your products and associated scale of operations.

Download Free StartBizUp App