1. Money

5 Resources You Need to Succeed to Start a Business

Part 2: The Knowledge You Need to Start a Business

By

5 Resources You Need to Succeed to Start a Business

Do your Research!

Image (c) Elyse Lewin / Getty Images

Get The Business Knowledge You Need

Many people have tried to start their own businesses without bothering to acquire the business knowledge they need to make their business a success - and their businesses have failed.

To start a business, you have to be knowledgeable about many different aspects of business and have many different skills… or at least have done the research to find and hire the people who have the skills you lack.

If you aren’t knowledgeable enough about accounting to keep your own books, for instance, you’re going to need to hire a bookkeeper and/or an accountant. If your business is Internet-based, you’d be wise to hire a company to design your web site and handle the back end, unless you personally are an expert in site development.

When you’re creating your business plan, one of your first steps needs to be a frank assessment of your skills and expertise. What aspects of the business are you qualified or willing to handle, and which aspects will necessitate either more learning on your part or calling in outside help?

Managing people is only one skill set you’re going to need to start a business that's going to be successful. You also need to be knowledgeable about sales and marketing. For example, suppose you’ve developed a better mousetrap. Who are your competitors? What are the mousetraps they’re offering like and how are they priced? What makes your mousetrap better? Is there even a need for a better mousetrap out there? Where is “out there”? Do you have the skills needed to identify and contact customers? Are you good at selling mousetraps? Can you develop a feasible marketing plan and promotional material?

And what about business operations? Do you have the business knowledge to manage inventory and fill orders? Where all you going to store all your mousetraps and how are you going to get them to your customers? Have you found the suppliers you need and developed relationships with them? Have you set up a customer support policy?

Business knowledge before you start a business is critical. All the drive and determination in the world isn’t going to help you if you don’t have the knowledge to actually run a successful business and don’t bother to research and plan for your success appropriately. A friend of mine had long dreamed of opening a bookstore. So he did. Unfortunately, he hadn’t bothered to study the competition or the demographics of the market in the area. It took less than a year for his bookstore to fail. He had the desire and the drive, but didn’t have the knowledge he needed to apply them.

So let's assume that you are a Type D Personality with all the business knowledge necessary to start a business. Are you a shoo-in for success? Not unless you have the money you need to start a business. Continue on to the next page to learn about finding start up money.

Related Video
Adam Gerber on advertising business models

©2014 About.com. All rights reserved.