There are multiple steps that one should ensure before starting a business and it is necessary to delve into the business idea before you start planning. Research your idea, before looking for investors and getting the licenses you will need for your businesses to run as it ensures the good and clear understanding of the business you’re about to enter. Markets research will help you find competitors and potential customers by collecting data from public sources. It will help you understand economic conditions in your area and form network through industry associations and small organizations to develop strategies for your business.
Pre-planning is a stage for your preparation to build a startup. This stage is important as much as second stage as it forms the solid foundation and most of the things in the second stage will exactly depend upon the pre-planning. Planning is the stage where most of the entrepreneur start as it is simple but in real marketplace this is wrong and need to be change if they want to be successful entrepreneurs. The preplanning stage should not be overlooked because of its importance to the business. However, pre-planning is where project is defined:
- A Team is formed
- Products or services are established
- Activities are identified
- Extensive market research
According to Business review study, one in six projects will result in 70% schedule overrun and 200% cost overrun. It is because of the fact that as you run the business/project, the complexity increases, it brings more variables that could cause delays, unplanned changes and it will ultimately impact deliverables. In the excitement of getting the business underway, achieve the goods and enjoy the success, teams loose the sight of how to properly plan and execute. Looking at how the business flows, by pre-planning the business thoroughly ahead of the time, resource –consuming hurdles can be avoided, the unplanned schedule and cost overrun can be minimized.