Starting a business typically involves going through the notions of planning, marketing, making fundamental financial decisions and completing any necessary legal activities. Many people have their own concepts about choosing the right route to go in starting a small business. However it is simply up to the business owner and depend on the type of business. It is said that the top five reasons why businesses fail are due to; “1. Insufficient start-up capital, 2. Lack of managerial experience, 3. Bad location, 4. Poor inventory control, 5.Lack of initial planning.” (Lopez, 2008). That is why, before starting a new business, it is important that one must analyze the necessary activities and key decisions that it will take to get the business up and running.
When analyzing the key decisions of opening any type of center for children, one should first assess him/herself as a potential business owner. Are you a leader? Are you confident? Do you have the emotional strength and good health to handle the work load and daily schedule that owing your own business will require? What basic skills do you think you will need to succeed in business? Do you possess those skills? etc. If the assessment has more positive than negative traits then it is time to phase into the next step of determining the feasibility of your business idea.
There are many different types of childcare centers so considering what makes this new center much more unique would determine how feasible the concept really is. It is good to take into consideration what products and services you will provide to your customers. Ask oneself why and who will pay for your services? How will your customer know you have services available? How much will your customers pay for your service? These questions should be answered realistically because if not your dreams could become another failure. Once one defines their business idea, and it still looks like a good idea, they will want to do more in-depth market research and analysis to better define their opportunity and their market. Many decisions must be made and there are important issues to consider in order to minimize your risk and increase the success in starting one's business.
Examining critical issues and making important decisions are usually stemmed from personal reasons as to why people want to go into business for themselves. There is much to consider because of the various options of entering a business of your own. It is important to know the difference between buying an existing business, buying a franchise or starting a fresh new business.
In this case of opening a child care center, I think it may best to be unique because although some establishments may have many franchises in operation, one may not really know the reputation is has until the invest and the business becomes established. The best thing in this scenario would be to establish a new business because it allows much more flexibility in the control of how things are operated, what the curriculum would be, the set up and layout of the facility and much more. Since this business is unique compared to the others that already exist, then starting it fresh off the ground would be smart because the uniqueness puts the center at an advantage to gain a good amount of initial customers.
To ensure that the decisions from determining whether the critical issues are resolved one must ensure that they have properly selected the right professionals, selected a convenient business location and minimized risks as much as possible. Seeking professional help along the way may be pertinent during this task period.
When establishing a new business one must investigate all necessary legal considerations and requirements. There are strict concerns that people question when it comes to childcare simply because people are leaving their child lives in your hands on a regular basis. Their main concern is...
References: Greg Lopez. November 2008. “Five Creative Ways to Start a New Small Business in a Economy,” Small Business Administration, Office of Advocacy, p. 1.
Small Business Administration. n.d. Borrowing Money for Your Business. Retrieved from: http://www.sba.gov/content/borrowing-money
Berry, Tim. 2013. How to Get Your Business Funded. Retrieved from: articles.bplans.com/financing-a-business/how-to-get-your-business-funded/58
Scarborough, N. M. (2012). Effective Small Business Managment: An Entreprenuerial Approach. Upper Saddle River: Prentice Hall.
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