Doing Business For Beginners

Everyone has ever thought about starting their own business. However, independent business management and all its difficulties sometimes frighten and force you to abandon your dream. This article will examine in detail the steps towards starting a business, as well as typical mistakes of new entrepreneurs.

How to open a business: stages

Doing business for beginner businessmen is something unknown and hidden by a veil of secrecy. The idea of ​​starting your own business in most cases is very vague and not formed. Therefore, it is worth step by step to analyze the actions on the way to a successful business.

1. First you need to write out all your ideas in a notebook or notebook. A goal that is not on paper will never be achieved; you must visualize the prospects. There should be many ideas to choose from.
2. Now, for each individual idea, inquire about market demand. You can ask friends and relatives, look for information on the network. Monitoring of potential rivals will also be of great benefit.
3. Based on the results of your analyzes, choose the most promising idea.
4. Estimate your capital. Calculate the total amount of all your current savings. If you do not have enough money, decide where you will get them. Think over this question carefully and without haste, because capital is one of the most important aspects of starting a business.
5. Doing business requires a business plan. Of course, many people start without it, but, as statistics show, all the most successful businessmen made a business plan before starting a business. He organizes your actions, time and effort, gives you even more energy, helps you avoid unforeseen circumstances if you act strictly on it.
6. Next, create a marketing plan.
7. Register your organization.
8. Choose the location of your company.
9. Find employees.

Features of a successful business

Features of doing business most successfully represent a number of factors:

1. Reasonable financing and the correct calculation of funds and loans.
2. Availability reserve capital.
3. Rapid revenue increase.
4. Formed goals for the future (expansion of the company).
5. Development through a strong brand.
6. Allocation of significant resources to innovations.
7. Competitiveness.
8. Work for clients - the company takes into account their desires and needs.
9. Search for qualified workers and specialists with great potential.
10. Well-coordinated team work, team manageability and the availability of a capable HR manager.

Beginner Mistakes

Doing business is a very complicated process, and many companies are defeated before they start to compete with rivals in the market. Consider the basic mistakes of novice entrepreneurs.

1. Start your own business alone. The first step is always the most difficult, and it is difficult for one person to endure the difficulties of starting a business and preparing for it. Partners are needed to protect against incorrect decisions, the creation of more ideas and support in a difficult period.
2. Wrong place choice.
3. Niche with low competition. Such a choice is simply a fear of defeat. No need to be afraid. If you want to create a successful business and earn big money, you will have to face rivals.
4. Stubbornness. Many businessmen do not succeed because they are too committed to the original plan. If you feel that the plan is becoming irrelevant and losing potential, make changes. This will not bring anything bad, and perhaps radically turn things around for the better.
5. Pulling with start. Due to uncertainty about the readiness of the product, many companies delay the launch date, and when the product is completely and completely ready, it is no longer relevant.
6. Running ahead of time. By presenting an unfinished product to the target audience, the company is ruining its reputation.
7. Lack of image of the target audience.
8. Small contributions or unreasonably high costs.
9. Focusing on earnings, not on consumer needs.
10. Lack of diligence.
11. Disagreement between the founding partners of the company.

Forms of doing your own business

When registering a business, you must specify the legal form. We must approach the choice of form with all we understand the seriousness of the issue, since each has its own characteristics.

Forms of doing business can be as follows:

1. A partnership is an association of several legal entities or individual entrepreneurs. Partnership is divided into simple, complete and "on faith." In the first case, all members can act independently of each other. In the second - none of the participants can make decisions without coordination with the rest. In the third case, responsibility is distributed unevenly.
2. The farm. The main goal is farming. The head of the cooperative is a farmer.
3. A joint-stock company is a commercial organization whose values ​​are shares. It can be public (shares are available to everyone), non-public or closed (shares are distributed within the company).
4. IP (Individual Entrepreneur) - a form of business in which the owner is one person, responsible to creditors with all property.
5. The limited liability company (LLC) is managed by the board of directors (owners). The head is the CEO.

Today, the most common are LLC and IP.

Qualities of a successful entrepreneur

Of course, a business will only succeed if the businessman has all the conditions for doing business that were discussed above in the article. However, the entrepreneur’s personal qualities are no less important, because the main thing, the idea, comes from the founder of the business. So, what qualities should a potentially successful businessman have?

1. Tenacity. You need to be prepared for defeats, which will be necessary. It is important to maintain a good mood and firmly go towards the goal.
2. Passion. The essence of the business should be above money.
3. The ability to see what no one sees.
4. Self confidence
5. Flexibility, quick response to changes in the situation.
6. The desire to be "not like everyone else."

Small business

The size of the business depends on how many employees are in the company. In each country, this figure is different from others. For example, in Russia - no more than 100 people., In the UK - up to 250.

Small business ideas also differ from ordinary business. Here they do not have high growth potentials. Most often this is the sale of a product or service (apartment cleaning, tutoring, manicure).

It also happens that an entrepreneur simply underestimates his idea and does not see its future development, although it may exist. Consequently, he only dwells on the narrow scale of his work and does not try to develop it.

How to get a loan to open a small business

Doing small business also requires seed capital. It is quite possible to get a loan for small business, but not easy. The most important requirements of banks are the reliability and solvency of the entrepreneur. However, there are a number of additional conditions:

1. Competent business plan.
2. Certificate of Income.
3. Lack of unpaid loans.
4. The age of the borrower is from 30 to 45 years.
5. Permanent registration.
6. It is preferable to be married.
7. mobile and landline phone.

The business plan assesses the future conduct of the business, its reliability and the ability to repay the loan.