The main question is 99% of beginning entrepreneurs "Where to start your business?There are many answers to this question. But I will try to discover the main points of starting my own business. The first steps are often the most difficult due to lack of experience, knowledge of the main mistakes and pitfalls.
The choice of business ideas.
1) Personal interest in this area;
2) Regional opportunities for implementing the idea.
3) A detailed analysis of ideas for business.
The next step will be to collect more detailed information about the ideas that are found. Now filter out the ideas with the addition of several criteria, namely: prospects, competitiveness, payback periods, the size of the first contribution (you can proceed from the account of the possibility of partnership business). As a result, there will be a few ideas that will be suitable. The most difficult moment is coming, choose the industry and the idea with which you will work in the future. Having left a few options, spend more time on the next step.
Studying entrepreneurial experience.
Remember one truth that everything has already been invented before you, take someone else's invention as a basis, modify it, and adjust it to your capabilities. Watch your competitors well. Find out the competitor’s pricing policy, if possible, talk with employees who work or quit asking them about their strengths and weaknesses. Visit the competitor’s mazes (company), look for the pros and cons in the work of his point. You can also interview customers who use the services of this store (company). This can be done under the guise of a sociological survey. Ask simple questions to the buyer, why you chose this store (company), what reviews you can leave. These simple questions will give you a general idea of the desires of customers and the capabilities of competitors. Learn from the mistakes of competitors is an invaluable experience that hovers in the clouds.
Pay particular attention to the competition of your competitors. Explore the places of its placement, stylistic design, the fullness of information, especially the focus on the buyer.
Each type of business has its own subtleties and pitfalls. If possible, go to a neighboring city, talk with businessmen who are engaged in such a business. Ask them about the features, the specifics of working in the market, the number of employees, their skill level, and wages. Just because no one will tell you, show resourcefulness.
Where to start your business. Map of competitors.
The cost of rent in the city is different. Find out the approximate cost of rent in each district of the city, where there is a suitable place for starting a business. Map all competitors. Thus, you can find those areas that are not yet covered. You will also need to determine the priority location of the business (take into account the average rent in the area and the flow of people).
Choosing a company name.
After the work done, come up with a name for the company. A very difficult stage, which takes into account the type of company’s activities, industry characteristics and attractiveness for future customers.
After going through all the above steps in the end, you will get a general idea about the industry and get acquainted with some features of this type of business.
Drawing up a business plan.
The next step will be to draw up a detailed business plan. A detailed business plan will provide an opportunity to calculate the initial costs.Start-up capital should be sufficient not only for opening a company, but also for the first months of operation. Salaries to employees, rents, contingencies. In the first months there may not be any profit at all, if there is profit, then put it into circulation to increase the assets of the company.
Registration IP.
Registration of an individual entrepreneur takes a lot of time and effort. There are many bureaucratic subtleties that should be studied before registering IP. There are two ways to register an IP:
1) Register IP yourself;
2) Turn to special organizations that register IP. Each option has positive and negative sides.
After receiving all the permits and completing the initial work with the documentation, a no less difficult period of organization of the production process begins, all life experience and perseverance will be required. Now you will have a great responsibility for the functioning of your own business, work with the team, customers and partners.
You probably understood that there is simply no definite answer “Where to start your business?”, But I revealed some nuances. Now I would like to tell you about the main mistakes.
Entrepreneurial Mistakes
1. Loan obligations
Starting your business on a loan, you should remember that this will entail difficulties. The organization that issued you the loan assumes that you will immediately pay interest. But in the first months of work you will not have free finances, the profit will go to pay off the current costs of the company, without which it will cease to work. Thus, you can get into a debt hole and pay your business for negligence.
2. uneconomical approach
At the beginning of the life of the company, do not rent a luxurious office in the center; do not waste money on presentability. Also, do not hire extra employees who will work for a couple of hours, and then just relax. Extra spending on huge advertising companies. Start with small steps. By trial and error, while the company is very young, the first big blow can lead to its collapse.
3. Insecurity of own property
The financial responsibility of the founder will depend on the choice of ownership. When paying debts, you have to say goodbye to your own property.
4. Poor business plan
One of the most important components is a business plan. A carefully prepared business plan will help the young company immediately see all the weak spots in financing and begin to eliminate them even at the cost planning stage.
If they ask me “Where to start my business?” I will answer with three phrases: Find a worthy business idea; Learn the mistakes of predecessors; Make a detailed plan; You can safely open your own business.
"Afraid? Don’t meddle! Climbed - don’t be afraid!))