Not everyone is happy with being an employee, especially those who take an active life position. To become an entrepreneur and organize your own business - this idea very often visits people, even with a very good level of wages. How to start a small business and how to organize your own business is far from idle and rhetorical. This is a purely practical question posed by purposeful people who want to succeed in business.
Where does the business start?
There is an erroneous opinion that one’s own business begins from the moment you receive start-up capital, when a person has free money that he can invest in something profitable. But this is far from the case, small business begins with a business idea, and money, equipment, labor resources is already secondary, this is just what it is planned to achieve the goal with. You can come up with the idea of a future business yourself, or you can borrow from others. The first option is more complicated, because finding something really new in the modern world is very difficult and often what seems new is just a modification of something already existing. An exception to this can be called various scientific developments that have not yet found practical application.
Therefore, pondering the question of where to start a small business, you just need to look around, analyze what other entrepreneurs earn. In this case, with a high degree of probability, it will be possible to find something that interests you, it seems promising, and what people or organizations feel the need for. Then you need to find the market segment where the demand for the selected type of business significantly exceeds supply, and where there are no strong competitors.
An example is the shortage of supply of outlets, service enterprises, kindergartens, guarded parking lots in the areas of new buildings located on the outskirts of cities, in the so-called sleeping areas. As a rule, in such areas the infrastructure is very poorly developed, so if you occupy a free market niche in time by setting up a modern shopping pavilion or a small store, then stable demand will be guaranteed, which means that with proper business management there will also be a stable income.
In addition to the search for unoccupied market segments identified by territorial criteria, it is worth looking for free market niches by various other criteria: age of potential customers, price, environmental friendliness of goods and services, etc. Perhaps the narrow specialization of a certain type of goods or services will become the key to a successful business idea. For example, a specialized grocery store for people aged or people with diabetes. And most importantly, when developing a business idea, you need to understand what mission will be fulfilled by a future small business, what benefit will it be to society.
The choice business ideas just the beginning
Having decided on the idea of a future business, you should start drawing up a business plan, at this stage detailed answers should be received to the question of where to start a small business. In particular, a portrait of a future potential consumer is described in detail and demand is predicted. Based on the demand forecast, the planned revenue is determined. In this document it is necessary to determine what is needed to organize your own business. Among the main areas of investment should be highlighted investments in buildings and structures, equipment for small businesses, work clothing for staff, in the preparation of permits and licensing documents, payment of state fees and registration fees.
When choosing equipment, buildings and structures, it is necessary to focus on the volumes of the planned revenue, they must correspond to each other. For example, you do not need to plan the purchase of a powerful truck when a small van will be enough for the needs of the entrepreneur. Do not rent expensive premises in the city center if such an arrangement does not bring a significant increase in income, etc.
Another important point that needs to be defined in the business plan is the legal form of the future enterprise, here it may just be the registration of an individual entrepreneur, or the creation of a legal entity. If goods and services will be aimed mainly at private citizens and it is not intended to attract large borrowed funds, then it is enough to register as a PUBL. In other cases, it is better to create an LLC. For the establishment of a legal entity, it is necessary to develop and register the charter of the organization.
In addition to investments at the stage of organizing a small business in a business plan, you need to determine what the current expenses of the entrepreneur or LLC will be composed of. The main items of current costs in this case will include staff costs, expenses for the purchase of raw materials, rent for buildings, premises or equipment, utility bills, advertising. When planning the staffing table, it is necessary to determine how much basic staff will be needed, directly involved in the production of goods, the provision of services, how many administrative staff are needed, and how much staff is needed. In this case, it is necessary to analyze what processes can be outsourced. For example, for small businesses it is cheaper and easier to conclude an agreement on accounting, personnel, IT and legal support than to keep a lawyer, accountant, programmer and personnel officer in the company’s staff. Support processes can also be provided by a third-party organization, mainly for transport services, cleaning, etc.
The result of the business plan will be the calculation of the planned financial result from the future activities of the company or entrepreneur and the determination of the payback period. If these parameters suit a person who has decided to go into a small business, then you can begin the direct implementation of all plans: look for money, register, hire staff, purchase equipment, etc.
