Starting a business is very similar to starting the family. After you take a plunge, you must be sure to defend it for a good period of time. Therefore, before plunging, it will be a little to plan a little. Here are 5 important tips:
1. Do your own research
Before deciding the business you want to start, do some research. It must include the market size you are targeting, the type of customer you will have, their taste, and level and type of competition.
In addition, a good study must also be done about costs: rent, cost of raw materials, labor, and the best location.
It’s better that you don’t rely on agents or other friends for this. It’s okay for large corporate organizations to employ research companies to do this, but you are not a big company.
Don’t trust someone else’s assessment before drowning your dollars gained loudly on business. Do excavations, and plan your own.
2. Prepare a business model
The business model is your plan statement about how you intend to generate income, and how many advantages you are headed. There are 5 main ingredients of a good business plan.
a) market size targeted in terms of quantity and value
b) Input and production costs
c) expected income or total sales results,
d) rent, flower on capital, depreciation for furniture / machines
e) Expected advantages at the end of a quarter, or one year.
It is important for you to prepare this business model with honesty and maximum accuracy, because the success of your business will mostly depend on the efficacy of your business model.
3. Stay on your plan
After you make all plans and start a business, remain on the plan. Don’t change the middle lane, and don’t be discouraged with adverse results at first. Every business will initially face resistance, but if your plan is made well, your business will definitely work.
History is a flush with examples of how some of the most successful entrepreneurs in the world built a great business kingdom by continuing to pursue their efforts despite initial setbacks.
4. Having plan b is ready
Even the best relaxing plan might sometimes be wrong. Suppose unexpected events – natural disasters, shrink suddenly market, a new discovery fully replaces your product – happens, and your business model cannot be used.
If it finally happens, it will be stupid to continue the same trade and go on ordering losses month after month. It’s better to cut your losses, and place the plan B to the operation.
Plan B must be arranged in such a way that your loss is minimal, and you are left with enough capital to start again.
Don’t forget that new circumstances will vomit new opportunities and your business career completely meaningless. But you must have enough capital, and your mental skeleton should not be burdened with failure scars, to take advantage of new opportunities.
Therefore, it is very important to know when to stop and start again. For this, you must have plan B ready in advance.
5. Don’t be too ambitious too early
Initially, it was always very important to take small steps. Your operating size must be truly in your financial and physical capacity. It should be so you must be able to manip it personally, at the initial stage.
You cannot depend on other people to implement your plans carefully. You have to do it yourself.
For this, it is important to know your restrictions and limit the size of your business in it when you start. In the same tone, if you have to borrow funds to start a business, it must be in your payment capacity, and the payment schedule must be built into the business model since the first day.