4 THINGS TO CONSIDER BEFORE STARTING A COTTAGE BUSINESS.

Starting a business is quite challenging and many aspiring entrepreneurs do not understand what it takes to run a business, especially from the comfort of their homes. 

 I will be sharing some useful tips to consider before starting a cottage business.

• DO A FEASIBILITY STUDY

According to Investopedia, “A feasibility study is an analysis that takes all of a project’s relevant factors into account—including economic, technical, legal, and scheduling considerations—to ascertain the likelihood of completing the project successfully.”

A feasibility study provides the entrepreneur with the necessary data to evaluate the nature of the proposed business venture. Also, it provides a full picture of the business, putting the businessperson in a perfect position to make an informed decision.

• IDENTIFYING YOUR MARKET

Identifying your market is also a part of the feasibility study. It shows the market segment your business caters to and helps you design your product to suit the needs of that specific demographic.

By choosing a market segment, you put your business in a competitive position with other brands covering the same market segment as opposed to competing with bigger brands with comparative advantage in the market.

• MARKETING

Irrespective of the size of your business, having a marketing strategy is important to the growth and sustenance of your business. It is the means of connecting with potential customers and letting them know your products and services exist.

It also gives you the opportunity to interact with customers and gain meaningful feedback about your product and service that can help in its development.

• LEARN GOOD BOOKKEEPING HABITS

I cannot overemphasize the importance of good bookkeeping habits. Bookkeeping is simply the documentation of your business’ expenditure and revenue. It provides the business owner with a full view of the business.

There are several benefits of cultivating good bookkeeping habits. It helps small businesses get loans from the bank. It also helps business owners spot financial mistakes which can significantly impact the business.

Before you go ahead to launch your business, you need to consider these four important things. It is equally important to register your business as this opens you to a number of opportunities. 

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