Friday, 5 June 2015

How to open a business. What you need to open your business.

Sooner or later, everyone bothers to work for someone and want to work for yourself. Then there is the question of how to open a business. But the start-up capital and a great desire to do is not enough. To be one of those who just throw money and effort into the wind and nothing is achieved, it is necessary to have a clear plan of action for the opening of the business.


How to start their own business - the choice of fields of activity

Choosing a business, you need to be guided by the following principles: a business must be in demand in your area, you like it should, and ideally - have prospects for expansion. And if you're wondering how to start their own business and do not burn, it is necessary to comply with all these conditions.

Among the main areas of business are the following:

  • services;
  • trade;
  • mediation;
  • production activities.
How to open your business - whether it is necessary to choose the undeveloped area?

The most effective option to start a business, it is considered the choice unoccupied niche. If you began in the city building boom, and quite a few construction companies, engage in manufacturing and wholesale sales of building materials. Or maybe in your area there is a lack of trucks, lack of home products for sale, and the like. If you choose not to extend the scope too, you always run the risk, but the benefits in case of success will be greater.

How to start their own business - the study of prospects of business

So you have to choose which to open a business. Now you have to examine its condition in your area. As far as he is in demand as a growing, and what can be done. If you see that several companies focus your many years in a row can not develop, you may want to think about the right choice.

Calculate profitability of the business , the period for which you have to enter the break-even point and try to predict future profits, based on previously collected data. Set a clear goal. For example, your business must be repaid within six months completely and start earning a monthly income of a certain amount. Or monthly gain customers of your company should be so much.

How to start their own business - the study of competitors

To find out how to start their own business in their chosen field, pay attention to the competition. Their success or, on the contrary, the failure - very valuable information for you. Learn strategies and methods of advertising that use the company's competitors, their strengths and weaknesses, a category of their customers and clients, try to adopt all appropriate decisions and avoid their mistakes. This kind of marketing research. With this, you can gain a competitive advantage - for example, lower prices, to focus on quality of service and speed of delivery.

How to start their own business - a business plan

It is a complete reflection of the entire sequence of your actions and their rationale. What should go in here, and why?

1. Summary of the project (what you are going to do and for what purpose).

2. Rationale for and benefits of your company. If you are able to explain why your business will be of interest to people and the potential customers you explain it easily.

3. The study of market and competitors. Decide how and for whom you work, how you will sell their products and make a portrait of your customer in order to understand who and how "self" to offer. Another very important to point out why your company is relevant, and it's better than the competition. This will help to prioritize your activities.

4. Marketing and Advertising. Before opening your business, you need to know how you will promote yourself (media, outdoor advertising, direct addressing client) and how will stimulate sales (promotions, seasonal discounts, bonus cards, and so on. D.).

5. Organizing, production and legal background. Many believe these items are not so great, but in order to organize the smooth operation of the enterprise, it is better to think in advance what room and what part of the city must be selected (including competition), how many people to hire and how to register your company.

6. The financial part. Based on the above points of the business plan, one needs to calculate the amount needed to start a business, monthly income and expenses. Here you can determine how long it will take to ensure that the business has paid off.

Risks


To be absolutely prepared for any eventuality, define for the project risks that you may encounter in the work (equipment failure, higher prices for raw materials and so on. d.). So you will be able to advance to figure out how to deal with them and reduce potential losses.

Registration


Now that the preparatory phase is complete, you can begin to act! Before you open your business, carefully think over its legal form. Among the key: FE, LLC and JSC. It is important to understand the feasibility of a particular form of ownership. Open Joint Stock Company for the shop fresh baked just not worth it, but if you want to open industrial production, it is better to stay at the option of a limited liability company. Register as an individual entrepreneur is pretty simple, the share capital is required, and this is a great option for running a small business. In order to register an LLC or JSC, need charter capital (10 m. P. 100, and so on. P. Respectively) and much more documentation, bookkeeping, but also such organizations seem much more respectable in the eyes of customers and partners.

Investors


Unfortunately, the budding entrepreneur does not always have the amount needed to open their businesses. Then it becomes a question of finding funds. The most simple, but risky way - a bank loan. But not every project will prove the viability of his bank, although competent business plan will be a great help in this matter. You can look for private investors who are ready to give a loan at interest, or in exchange for a certain stake in the company. If you decide to start a small business, you can to try to get help from the state in the form of grants, various competitive programs. Another way - crowdfunding, but it is suitable mainly for a variety of start-ups (game development, programming) and art projects (magazines, exhibitions, and so on. D.)

What mistakes should be avoided?


  • Do not borrow money from friends or relatives
It can ruin your relationship and close involvement of the people in the business can have a negative impact on it.

  • Do not wait for the money too fast
Not what project pays off in less than six months or a year. So count your money so that in a month or two of work without profit you will not have to urgently look for, where to borrow money.

  • Lawyers and accountants - this is important
"Paper" red tape and problems with the Internal Revenue Service can "kill" any business in the bud. So do not skimp on the advice of a lawyer and an accountant's job.

All this - the basics of how to open your business, so do not be lazy to spend time on research and planning to get one hundred percent of their project out!

No comments:

Post a Comment