The Information Technology industry is an evolving and thriving one. Computer technology and telecommunications are used in industries to perform specialized functions across all sectors. As the IT industry evolves, many entrepreneurs are trying to establish IT service businesses. However, several statistics have clearly shown that only 4% of new businesses survive for ten years.
More than half of the small businesses in the United States do not make it to the fifth year. The big question now is: How do you create a successful IT business in a changing economy? How do you build an IT service business that scales all the hurdles to become one that makes a profit and still gives back to the community? This article provides a checklist of nine indispensable things that you need.
A Business Idea: You need an idea that works and an attractive offer that meets the needs of your target market. Be unique in providing solutions, be committed to solving problems, and be determined to get a market share. Your business must solve a problem and meet a demand in the marketplace. Find people's pain points in your niche and get creative about solving their problems.
Expertise or knowledge: Pursue the knowledge and expertise needed in your chosen niche. Do the work needed, including research, planning, and execution styles. Do you have a business plan? What is your plan to make a profit by executing this idea you have? You can always write a business plan by yourself. When it comes to owning a business, be committed to learning every day to be up to date.
Demand and Supply: You need to do multiple surveys to determine if there is a demand for your product in the marketplace. Do you have a target market? Is your target local or global? Have you read up on the rules and regulations of doing business internationally? Your market survey will give you the details. Some of them are the size of the market and its potential to grow. You will have an idea of the margins for profit, the buying habits of your customers, and the different segments of the market. You can also use social media to assess your target audience.
Start-up Costs: Make a rough estimate of the cost of starting your business and then add some. What kind of equipment do you need? Will you need to build a storage space? Will you need to purchase machinery? Will you need to buy furniture? Sometimes all you need is furniture and office equipment. Plan to have some money for working capital to handle all overhead costs till you start making a profit.
Finance and Capital: You need money to run your business. You need money for initial costs and to finance your business. You can use savings or you can borrow to finance your business. More than half of the businesses that exist rely on savings for initial funds. For running costs, you can take short-term or long-term loans. It is ideal to go for long-term funds when purchasing fixed assets. Short-term loans are ideal for working capital and should be repaid as the business begins to generate revenue.
Competition: The key to surviving in the market is knowing what your competitors are doing. Develop an excellent strategy for meeting the demand and supply gap. Your goal should be to gain market share quickly. It should be relatively easy when there is a massive demand for your product. This gives your company a strong position even in a competitive market. Study their strategies, pricing, and marketing and implement them to help your brand grow. Get to know their strengths and weaknesses. To differentiate your brand, concentrate on communicating your unique selling point.
Use of rented spaces: Renting a suitable space is vital to having a good location for your office. Renting a space rather than building an office space is a wise decision. There are choice office spaces in Atlanta for entrepreneurs and business people. The type of business determines the best location to situate the office. Some locations get you rebates and subsidies from the government. Others put you in a location where your competitors have their own offices. Focus on getting good facilities like parking spaces, transportation, and food spots. The vision should be expansion.
Staff: Your team matters a lot. The right team can help you achieve your goals. Get an efficient staffing strategy and reduce staff turnover. You can use a recruitment agency to get the right talent or put out an ad via your HR team. Train your staff and, during this training, communicate the vision of the company to them. Tell them their deliverables and specific targets needed to grow your company according to the goals. Give them salaries and perks to motivate them at work. Teach your team to have a great attitude despite being a new business.
Technology: Getting the right technology will help the growth of your business in today’s world. Get the software for monitoring the growth of your business and improving performance. What does your business require? What technology helps you keep processes seamless? Get a backup plan and hire the support needed to install, upgrade, and troubleshoot the technology of your choice. Invest in training to get the most out of the technology you use.
If you consider and make good of these factors that are listed above, you can increase your chances of shooting your IT services business past the sky. These nine factors can make your business failure-proof. You just have to know what you are doing and do it right.