6 Factors That Need to Be Considered When Starting Small Business Investments

ByPooja M Shah

Small business angel investors have opened up opportunities for people looking for ways of engaging in successful business opportunities. According to studies, many of the small businesses fail in the first 2 years. A significant percentage has a 50/50 chance of surviving during the first 5-years. The failure has been attributed to failing to observe some crucial factors taken into consideration when starting a business.

1. Reasons for starting the business - Many of the small business investments fail because they have been started for all the wrong reasons. Many persons decide to begin their own business simply because they do not like their job. However, instead of generating an enterprise, they end up generating another job. Therefore, instead of working for other companies they end up working for themselves.

2. Focus on value addition - The business is paid a value that is directly proportionate to the value that is generated at the market place. Consumers purchase a product and/or service that can help save energy, time, be more productive and make more money. To contribute towards this desire, it is important to ask how more value can be created for the customers.

3. Long-term vision - Establishing a successful business will always cost time and effort. Many times, when persons seek to make changes in their lives they are faced with setbacks. Many of these persons can be discouraged by these challenges. Therefore, a long-term vision plays an important role in motivating over temporary defeats. You will need to appreciate the fact that everything occurs for a reason. Once you embrace every experience, you will be in a position to discover miracles.

4. Capital - Business capital helps to run the business. Having capital in the form of sufficient liquid asset helps the business to invest in sufficient resources that help the business owner to generate more value into the market place.

5. Working in vs. working on the organization - You need to appreciate the fact that your business is not a job but rather an enterprise that makes profit by purely being in existence. It is necessary for you to make a distinction between business owner and self-employed. The real business owner features a system that effectively works for him as opposed to him/her working in the system.

6. Management - Good management entails planning, leading and organizing. A process sets realistic goals, manages risks, and controls the process of expansion while monitoring the revenue streams. In the process of management, it will be appropriate to make appropriate changes such as increasing income, decreasing expenses and seeking for professional advice.

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