Are you planning to start your own One Person Company? If so, it’s important to ask yourself some key questions before you do so. By asking yourself the right questions, you can save time and money by learning if becoming an OPC is right for you before you spend any more time or money in the process.
Here is the list of 15 questions to ask yourself before starting your own One Person Company.
Why do you want to start an OPC?
There are many reasons why you might want to start an OPC. Maybe you have a great business idea but don’t want to take on the risk of starting a traditional company. Or maybe you’re tired of working for someone else and want the freedom and flexibility that comes with being your boss.
Maybe you’re an independent contractor or freelancer who wants to start an OPC so that you can be your own boss. You may be interested in being self-employed but don’t have time to commit full-time. Perhaps you have a business idea but aren’t sure if it’s viable as a traditional company. Whatever your reason for wanting to start an OPC, make sure that you have a solid reason for starting an OPC.
Does your business idea capable enough to make desired money?
This is probably the most important question you can ask yourself. You might want to reconsider your business idea if your answer is no. However, if you’re confident that your business idea has potential, you can move on to the next question.
Who is your target audience?
As you develop your business plan and think about who you want to target with your products or services, it’s important to consider your audience. Who are they? What do they need or want? How will you reach them? Answering these questions and getting answered will help create a more targeted and effective business plan.
What are your customer’s expectations?
Knowing your customer is essential for understanding how to satisfy their needs and provide a product or service with a high chance of being well received. You should be able to answer these questions: Who is your target customer? What are their expectations regarding the type of services you offer? How often will they need your services? Where do they live, work, and shop? What can you provide them with that they want or need?
By knowing what your customers expect from you, you’ll be able to make an informed decision about whether or not it’s right for you to try and enter that market. This can help with deciding whether or not you should continue developing a product before fully testing it and prevent wasting time, energy and money.
Who are your competitors?
A major point to consider when creating your business plan is your competitors. Take the time to research what they are offering and how they have captured the market share. Ask yourself how you will compete against them and if there is any other way you can stand out from the crowd. Consider what they do well and look for ways you can surpass their services with yours effortlessly.
What is your USP?
A USP or Unique Selling Proposition is what sets you apart from everyone else. It’s the unique something that attracts clients and stands out. Some examples of a good USP would be discounts, guaranteed quality, knowledgeable staff, helpful services, etc.
You can’t achieve a USP by trying to copy someone else’s ideas or techniques. Be original and take ownership of something special in your business. Figure out what sets you apart from everyone else, even if it’s just little details like handwritten thank you notes instead of e-mails.
How will you market your business?
You must consider a few things when marketing your OPC. First, you’ll have to identify your target audience. Who are you trying to reach with your product or service? Once you know who you’re marketing to, you’ll need to decide what channels will be most effective in reaching them.
This could include online advertising, PR, or even word-of-mouth marketing. You’ll also have to create a strong branding strategy for your business. What colours and fonts will you use?
How will you price your products/services?
Not all products and services are priced equally. To find the right price for your goods or services, you’ll need to consider a few things first.
- What is the cost of production?
- What;-‘s the perceived value of the product/service?
- What are the competitor’s prices?
- How much do you need to mark up the product/service to make a profit?
- Are you willing to negotiate on price?
How do you arrange the funds for your business?
Consider where the funding for the business will come from. Do you have money saved up? Will you go into debt? Get a loan? Have family and friends invested in it? How much money in return are you willing to lose on this venture? How long can you hold out without any income or revenues coming in until you can start making a profit off of your business, if ever?
Make a list of these things and take a realistic look at how much money you’ll need to get off the ground. You may be surprised by how little or how much it costs. Then, start researching where you can get that money, if any, and figure out what level of debt you’re willing to incur.
Can you do this alone?
One of the first things you need to consider when starting a business is whether or not you can do it alone. It might be worth partnering up with someone if you have a great and unique business idea but no business acumen. But if you’re confident in running a business, going solo might be the way.
What resources do you already have?
Have you thought about how much money you’ll need for the start-up? What about resources? Are there any tools, tech, or other items you will need to make this project successful?
Write down everything and anything relevant. Also, think about what might be necessary and not just nice-to-haves. Taking inventory of these items will help with budgeting later on.
What kind of taxes do you have to pay?
Income taxes, business taxes, and self-employment taxes are the three main types of taxes you’ll need to pay as a business owner. Income taxes are paid on the money your business earns, business taxes are paid on the products or services you sell, and self-employment taxes are paid on the income you earn from running your business.
Knowing which taxes you need to pay and how much you’ll need to pay in each category can help you budget for your business and avoid any surprises come tax time.
What are your goals?
When starting a business, it’s important to know what your goals are. What do you want to achieve with your business? What do you want to accomplish in the short-term and long-term? How will you know if you’re successful? Knowing your goals will help you create a plan to achieve them.
When will you be ready to start?
There is no one easy answer that applies to every person and situation. If you were as honest and loyal with yourself as possible about your current situation. If you are unsure whether or not now is the right time, it might be best to wait and reevaluate. It may also be wise for you to take some entrepreneurship and business management courses to better prepare for the challenges of running a business by yourself.
How long can you stick with it?
If you don’t have the courage and effort to go for the long haul, then it’s unlikely that a one-person company will work for you. Think and evaluate carefully what you can and cannot live with when it comes to an OPC. Can you see yourself not being able to grow as fast as if you had more people on board? If so, think about partnering with someone, perhaps an acquaintance in a complementary business.
It can be quite daunting & stressful to start a new business, but once you think through the following 20 questions and answers, you will know if you’re ready for starting an OPC. If not, then it may be best for you to wait until you are in a better place emotionally or financially. Either way, it’s important to take time for introspection and spend some time on self-care.