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How
to start a business
Starting
a business should be the easiest task. The basic principles
of business are that you do one of the following.
1)
Buy a product cheaply, and sell it a more expensive price.
2) Create a unique product and sell that.
3) Provide a service which someone else needs.
Its
not rocket science. And you do not need a degree, or a doctorate
to run a business. In some countries, you can even get away
with not knowing how to read or write.
Yet,
I've lost count of the amount of people who tell me they want
to start a business. Then a year later, they say exactly the
same thing - having not started yet. Five years later - they
are still saying the same thing. Or they have started and
stopped, when it did not make them a millionaire in one week.
Well - at least they tried I suppose.
About Business
" The will to do, or the will to succeed. Either you
have it or you don't.
" The basic ingredient for success is determination.
" Getting things done requires courage.
" Be prepared for resistance
" Pay the price - investment of time, money, friends,
leisure.
What's stopping you from starting a business?
There needs to be more people starting businesses. Many see
the need, but fewer people are willing to take the risk and
actually run a business. Business owners that have taken the
plunge need to be encouraged and patronised regularly, so
that they will stay in business.
Business can be tough. Initially you make little or no money.
You are busy spending out to set up. When you start trading,
you don't always cover your costs. Eventually - it starts
to pay off - if you can hold out long enough.
Some start and give up. Many don't start at all. Yes, many
businesses fail, but many succeed too. Who knows what your
business might do.
So you read the Sunday Times Rich List with vivid interest,
and tried to spot anybody who was black. Well, don't be discouraged
if there were few. Get inspiration from those who have made
it - whatever nationality they are.
- Read
biographies of people who have experienced success, and
follow the pattern. Keywords which should jump out at you
are: Ideas, Ambition, Risk, Perseverance, Diligence, Research,
Problem Solving.
- Believe
in what you do, and acquire the ability (or a constultant)
to sell it to investors.
- Employ
the best people who can help to build up your business.
- Is
money stopping you? There are organisations out there whose
job it is to lend money to people like you, no matter what
your credit rating.
- When
business starts to pay off - it is satisfying and rewarding
- and well worth the sacrifice. You'll wonder why you had
not left your 'secure' job earlier. The satisfaction of
knowing this is something you have created is a sublime
feeling
So
what's stopping you?
Process
for starting a Business
Decide
on what business you want to start.
Jot
down initial ideas, and expansion opportunities.
Visit shops, or organisations with similar business. Don't
discuss you aims, just visit as a customer and observe.
Do some
market research. Ask anybody whether they would consider going
to a shop such as yours. Start with family and friends, and
move on to complete strangers. A questionnaire is a good tool.
Location
considerations. Can
you start your business from home first. Advantages, feel
out the market before any major expenditure.
If a premises will be needed, look at a few empty premises
in your chosen area. Find out rates.
Salary
considerations. Can you start your business while you are
still in your present job? The advantage is that you still
guaranteed income while you test out the market. Disadvantage
- you cannot really give the entrepreneur role 100%.
Do
draft costings for your proposed business. How much will you
need to set up? How much will you expect to make.
Write a
Business Plan.
This is the most vital document required prior to the setup
of a professional business. A well written and original Business
Plan will actually enable you to get funds for your business.
Another benefit of the Business Plan is that it helps you
to organise your ideas for the venture. It should:
" fully describe what you want to do
" set out the strategy and action plan,
" identify priorities
" identify requirements, both financially and otherwise.
Raise finance
Open a
business bank account.
Acquire
premises. Work with builders, shop fitters, Decorators, Electricians.......
to set up business to your requirements. Acquire fixtures,
fittings, equipment and furniture.
(Have some reserve source of finance, because if you've ever
watched the Trouble at the Top Series on television, you will
see that budgets always over run at this stage.)
Meanwhile..... Organise publicity and advertising. Order professional
stationary.
Open with
a bang.
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