5 useful tips for those who are going to start their own business

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

There are a million questions for a budding entrepreneur, and some must be answered before starting a business. These tips will keep you focused on the essentials and turn your idea into a working project.

1. Describe the idea on paper

Business starts with an idea. This is indeed the case. And the main task at the first stage is to present your business idea on paper. After you write a few words about your idea, a lot will become clear. This way you not only structure your thoughts, but also fill in the gaps that will be identified in the process.

Describe the product, the associations it evokes. Describe how you see your business using definitions that fit familiar subjects: fun, cheeky, flamboyant, calm, family friendly. Describe what target audience you see in front of you. Many entrepreneurs do this already in the process of work, but it will be more useful to do it even before the start.

Now share your idea with your loved ones. Their questions and comments will help you make adjustments and complete the plan.

2. Decide on the amount to start

Many ideas do not come to life without being tested at this stage. Therefore, we will not neglect the calculations and consider the cost items that you face when starting your own business:

• Registration of you as an individual entrepreneur or legal entity.
• Creation of your own website.
• Premises for rent.
• Telephony.
• Recruitment of the necessary personnel.
• Design and printing of polygraphy (possibly packaging).
• Photo and video filming.
• Investments in the promotion of the company.

Do not forget to set aside about 20% of the resulting amount for incidental expenses!

Planning and estimating these costs is the best test of your idea.

3. Make a plan for sales and costs

A great solution is to make three plans:

• Optimistic. This is a plan for the ideal implementation of your business: the highest demand, a large number of customers. Write down on paper how many customers buy from you every day. This way you can calculate how much you will be able to sell in a whole month.
• Realistic. Now reduce the numbers from the previous plan by 30% and write it down again.
• Pessimistic. Imagine that sales at the start are low, there are much fewer customers than you originally thought. Better to stick to this plan. This way you will not be disappointed in your expectations.

Important: Don't forget about fixed and variable costs. Remember about the monthly repayment of the debt or loan, if it occurs in your case. Consider everything and write down the net profit or loss reading.

4. Plan the composition of the team

Now you need to decide which team will be able to ensure the implementation of your plan. Here are the questions to be answered:

• Does your business need another leader besides you?
• Will you outsource some of the work or will all staff be on-site?
• What kind of work schedule will you follow?
• Determine the pay system for your employees. Salary, percentage, bonuses, bonuses, or even intangible rewards.
• Will you have internal corporate training, is it necessary in your field?

For many aspiring entrepreneurs, these questions seem irrelevant before and at the start. But experience shows that the sooner answers to all questions appear on paper, the faster they are implemented in your business.

5. Decide what you will personally do

In this regard, I have two interesting life hacks.

First, you need to initially think as if you own a large international network. Thus, all your decisions will lead your business to success.

Secondly, you should not drown yourself in operating activities, be a director, a loader, a courier, and a manager at the same time. Hire workers right away. Otherwise, you will spend a lot of time that would be more appropriate to devote to the development of your company.

Use these tips and get your idea closer to a successful implementation. The main thing is not to be afraid to act, make decisions and take responsibility. Maybe your idea, like no other, deserves a successful implementation!