How to start a business from scratch?
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More and more people recently decide to stop working for someone and open their own business, the income from which will not have to share with anyone. Simply put, many simply want to be the master of their business and not depend on the whims of the employer. For some, such a decision leads to good results, but most still have to dream about their business, because they believe that it involves many obstacles in the form of huge investments, responsibility and other problems. In fact, starting your own business is not as difficult as it seems. Therefore, in this article we will describe how to start a business from scratch and achieve success.
Choice of direction
Before you start your business, you should first determine its direction. And his choice directly depends on what you not only want, but also to some extent know how to do. In our time, it is difficult to name things that are difficult to get, or services that no one can offer.Therefore, when planning your own business, you must rely on at least several of the following factors:
- quality or good service;
- affordable price;
- originality or uniqueness;
- maximum benefit;
For example, if you decide to open a clothing store, you need to carefully study this niche in the market for goods and consider an alternative that you are going to offer your customers in return for competitors. That is, either your clothes will be of good quality, or they will amaze with their originality (for example, all models will be embroidered with beads, etc.), or you will be pleasantly surprised by a good price. In addition, you can simply choose the most successful and crowded place for your boutique. In a word, you need to evaluate the market and choose for yourself the niche in which you will be able to offer the client what your competitors lack.
After that, you should deal with the target audience, explore its preferences, financial capabilities and, based on this, build and promote your business further. If you take the same example with a clothing store, it is better to start to take on something specific: a store for children, women’s or men’s clothing, or mostly sportswear or evening wear.Then, when your business goes uphill, you can always expand the turnover and the range, and for a start it is more correct to focus on one thing, but to do it as accurately as possible. Read more in our article How to open your business.
After you have decided on the direction of your business, you need to make a business plan. It is advisable that you do it yourself, because a novice businessman is not only his own master at first, but also the chief accountant, manager and PR manager in one person.
When drafting a business plan, try to carefully calculate your expenses and assign a separate amount to each individual item that is larger than you represent it. In the process there may be unforeseen expenses, which are better to include in this figure.
Experts recommend to calculate everything to the smallest detail. So if you are going to open your own office, you will have to write down every pen and button in expenses. Similarly, describe the expected income, just try to be a pessimist at this point or at least a realist: consider all the objective reasons for possible failures.
Where to get money
In most cases, if you decide to start your own business, you will need money to do this. Well, if you managed to save a decent amount from your salary, but not everyone can boast of such a nest egg. Some sell the property for this purpose, or pledge it to the bank. But still the most common option in our time are loans specifically designed for aspiring businessmen.
Of course, you should immediately prepare for the fact that the bank will require a lot of different documents (including a business plan) and begin to check your solvency. In any case, this is what serious banks do, in which you can get money with adequate interest. The little-known organizations will issue a loan much faster and more willingly, but you, as a rule, have to pay them mad sums.
Thus, the best option is a loan in a solid and reputable bank. You will probably also have to provide a guarantor who can cover your debt and interest if you cannot do it yourself. In some cases, you can bypass this item if you have property that serves as a guarantee of your solvency. By the way, read also our article How to start a business without money.
You will inevitably face the question of how to arrange your business. Of course, if you want to start with a small business, it is better to register as an IP (individual entrepreneur), at least initially. In this case, you do not need start-up capital, as is the case with the Limited Liability Company (LLC). In addition, if you aspire to independently manage your business income and make decisions regarding it, it’s better to become an individual entrepreneur.
It does not take much effort. You should write a statement, pay the state duty, provided for the SP, and provide copies of the necessary documents. In addition, you will have to register with the tax, as well as social, medical and pension insurance funds.
After all the necessary procedures you will not only start your own business, but also its development. Therefore, even if your business began to bring a good income from the very beginning, it would be wiser to invest its main part in business promotion. For the trade sector, this may be a new range or a larger volume of goods, in the field of services, a new office or repair in an old one, an invitation to professional staff, etc.
Nowadays, the importance of advertising campaigns, which are often the main guarantee of business success, cannot be underestimated. Therefore, you will have to spend a considerable amount so that your potential customers will find out about your products or services. If you organize your business correctly, such expenses will soon pay off, and increased revenues will be the impetus for further development. Success to your business!
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