How to start a business
It would seem that starting a business is easy, only you need money. It is the lack of money that is often the main obstacle to starting a business: money is needed for registration of an IP or LLC, rental of premises, purchase of goods, and hiring employees. But it’s not just cash. After all, the money invested in the business does not guarantee its success. Success will require, above all, a human resource: the ability to think logically. We need a competent miscalculation of all the nuances, and it must be done in advance. If you are thinking about where to start your business and are ready to move to action, it is important to clarify some important points.
Business does not mean wealth
“Your business” – sounds proudly. Maybe you can immediately see the golden mountains, free time and so on. This is a misconception about business. Not all new firms and entrepreneurs survive after the first year of operation. According to various sources, only 10 to 25% of new business entities remain “afloat”. Why it happens? It seems that most businessmen think that the essence of the business is to register at the tax office, rent a room, buy goods, and hire employees. After that, in their opinion, there should definitely be a profit. If you also think, then it is too early for you to start your business. Business is work, only much more laborious than work for hire. And the success of a business lies in a good business idea, in the right methods of attracting customers, in huge efforts. And it is always important to understand and accept the fact that a defeat can wait ahead.
It all starts with desire
If you have a strong desire to open your business, then you will most likely succeed. But it all depends on how this desire is formulated. If this desire is expressed as “I want to earn a lot”, then it speaks of the desire to receive only. But in return, you always need to give something away. This “something” is your effort to meet the needs of other people. That is, the correct installation is: “I want to help people, and in return receive money.”
Selection of goods, services, works
Goods, services and works – this is a product that you will sell, and thereby make a profit. And you need to choose this product especially carefully. In fact, it is a business idea. The most successful will be entering the market with a product that is new, demanded by consumers, and when there is little competition. “Everything is already invented before me” – a person can say. And it will be wrong, as new types of goods and services appear regularly. Someone comes up with them? One thing is clear: the original idea does not come to mind immediately. So you have to think very well. And if suddenly you see an innovative idea, grab it.
Note! To search for business ideas, you can and should explore the market for goods and services in other, larger cities, or even in other countries. It may well be that a product is not new in another locality, and in your area there are still no people offering it.
You can, of course, sell a product that is no longer new, but it is in demand. In this case, the most attention should be paid to the organization of business. That is, everything should be organized much better than your competitors.
A lot of money is not necessary
Almost everyone who is thinking about how to start a business is concerned about the issue of money. Basically, potential entrepreneurs are worried that there is no money, and after all, large investments are needed for any business. But history knows many examples when a business started from scratch with little or no investment, and developed very well. Of course, if you decide to open an amusement park, you cannot do without money. But if there is no money or very little, why start with the opening of the park? Simply choose a different business idea that doesn’t cost much. Or create it yourself.
If you really really want to open a business, for the opening of which you do not have the required amount, well, you can always get the money. First, you can ask for help from relatives and friends. Secondly, you can get a subsidy from the authorities. Thirdly, you can find a private investor. Fourth, you can get a loan.
About the importance of a business plan
Even if you are far from economic calculations, and the word “business plan” scares you, this plan cannot do without. It is hardly possible to build something without a plan. Similarly in business. Therefore, you still have to understand all aspects of writing a business plan. In addition, a business plan is required when you receive a subsidy from the state and when you receive a loan for a business.