Preparations for starting the business:

Starting a business of own is not a small decision. To become successful entrepreneurs have to prepare
themselves first. Some points are given below that successful entrepreneurs do before starting their
business. These are:

 Developing a powerful message:

The entrepreneur needs to know about the customer problems that will be solved and that the
potential customers are willing to pay for. This is often called the value proposition.

 Focusing on the customer and understanding the market:

It is important to research the demographics and psychographics of the potential customer base
and understand their buying habits.

 Starting small and grow:

By self-funding for the startup and then going for funding can create a growth story. This might
cause to break up product/service offering into smaller pieces so the entrepreneur can get some
traction and experience.

 Writing a business plan:

Before starting the business it is important to know about the type of business the entrepreneur
wants to have. Having a written plan with projected results and personal goals is the best way to
stay on track.
 Analyzing the competitors:
For analyzing the competitors Porter’s five forces model can be of a great benefit for the
entrepreneur because it is based on the insight that a corporate strategy should meet the
opportunities and threats in the organizations external environment.
Five forces analysis looks at five key areas mainly the threat of entry, the power of buyers, the
power of suppliers, the threat of substitutes, and competitive rivalry.

 Having a passion:
Passion is the fuel that inspires and drives people toward specific goals, no matter how
unlikely or difficult they might be. It generates the enthusiasm needed to overcome the
obstacles and challenges.