How to start your own business from scratch; ideas, business plan, motivation and advice

Hello dear readers. Today I want to talk about where to start your business and about some of the mistakes of aspiring entrepreneurs that I also made. I also want to give you a step-by-step plan for starting any (or almost any) business. And share a link to the section about business ideas and how to start your business from scratch without money! Now let's move on to the topic of this article.

Why I decided to write this article

Because many who ask me questions ask things that at first should not even bother at all. There are even questions that a person may never face at all. In general, "Woe from Wit" occurs in the minds of many novice entrepreneurs, and we will "eliminate" this grief in this article. At least I'll try very hard. Now let's talk about mistakes, and then I'll give you a step-by-step plan as I see it.

Some bugs and their solutions

1. Break-even point not calculated

Many people start a business without even counting how much they need to sell during what period in order to break through. This is important because many business models are cut off at this stage.

Calculating the break-even point is easy. You consider how much you incur expenses per month and then calculate how much you need to sell goods or provide services per month in order to recoup these expenses. If the figure is too large and seems unrealistic to you, then it is better not to take on such a business. If you think you can sell the right amount of products to cover costs or start covering costs in a few months, then you can think about this business further.

Conclusion 1: Until you have a complete financial picture of the business in your head, you cannot borrow money or even use your savings.

2. Everything should be perfect

When you start your business, you want everything to be right and beautiful: you buy the most modern equipment, create the most functional website, renovate your office, etc.

Striving for the best is useful, but there is one BUT - before you spend money, check your business model. When planning to make an expensive website design, first make sure that your services or products are generally in demand.

Business plan or how to start your own business

How to start your own business: key stages

Setting up a business consists of several stages, following which one by one and paying due attention to each, a future businessman will create a profitable business quickly and with minimal risks.

The key to success when starting your own business is not actually the presence of fabulous start-up capital or the presence of connections in power structures. In reality, success is determined by competent planning, detailed analysis and timely correction of actions at all stages of creating and operating a business.

Niche Selection Stage

First of all, you need to decide on the direction of your future business. Two key factors should become the fundamental factors in making the right choice of future activity:

  • Personal knowledge, skills and experience. No matter how competent and professional the employees are, a novice businessman must understand the basic laws and essence of the chosen business, otherwise strategic planning and control are impossible.
  • The size of the starting capital.

Of course, with a small budget, you shouldn't think of such projects as opening a gas station or a pawnshop, but there is a variety of types of business that require minimal investment to start.

I recommend choosing a niche through the business section by investment size, everything is very conveniently organized there and three formats are presented at once: ideas, plans, instructions.

Having chosen a suitable direction, you can start looking for your own niche within a specific type of business.

A niche is not just a direction or type of activity, it is an empty space within the market that a new service or product can fill. For example, if you are planning to open a bakery and there are already very popular French sweet buns in your area, but there are no baked Caucasian dishes, this particular market segment may become your niche.

Market Research and Analysis Stage

Market research activities can be divided into 2 areas: studying the target audience and competitors' proposals.

When planning to open a small business, correctly rely on data about a specific area, residential area - the smaller the unit of study, the more truthful it will reflect the data and the prospects for business development in a particular area (especially if there is a question of choosing the most suitable place of lease or purchase of premises for business).

Why I decided to write this article

Because many who ask me questions ask things that at first should not even bother at all. There are even questions that a person may never face at all. In general, "Woe from Wit" occurs in the minds of many novice entrepreneurs, and we will "eliminate" this grief in this article. At least I'll try very hard. Now let's talk about mistakes, and then I'll give you a step-by-step plan as I see it.

Some bugs and their solutions

1. Break-even point not calculated

Many people start a business without even counting how much they need to sell during what period in order to break through. This is important because many business models are cut off at this stage.

Calculating the break-even point is easy. You consider how much you incur expenses per month and then calculate how much you need to sell goods or provide services per month in order to recoup these expenses. If the figure is too large and seems unrealistic to you, then it is better not to take on such a business. If you think you can sell the right amount of products to cover costs or start covering costs in a few months, then you can think about this business further.

Conclusion 1: Until you have a complete financial picture of the business in your head, you cannot borrow money or even use your savings.

2. Everything should be perfect

When you start your business, you want everything to be right and beautiful: you buy the most modern equipment, create the most functional website, renovate your office, etc.

Striving for the best is useful, but there is one "BUT" - before you spend money, check the performance of your business model. When planning to make an expensive website design, first make sure that your services or products are generally in demand.

Or, if you are opening a cafe, before doing an expensive renovation, try to start selling in the premises that are available with minimal investment. If sales go on and the place in this area of ​​the city will bring at least some profit, then you can expand or make a sharp renovation.

Everyone knows that a business plan is one of the most effective tools for the successful implementation of a new project. Despite this, many aspiring entrepreneurs do not understand how to write a business plan competently. Someone has enough simple calculations from the category of "bought and sold", others build a complex strategy instead of clear goals and objectives. So does an entrepreneur need a business plan and how to develop it?

Why do you need a plan?

In the practice of doing business there are a huge number of force majeure circumstances that can affect the course of business. Their list is so huge that it is unlikely to fit into the format of this material. Moreover, it is almost impossible to take into account all factors in one document and develop a response mechanism to them. So does it make sense to have a strategy or is it enough to limit yourself to basic techniques and apply them as needed? As practice shows, it is still worth having a business plan.

1. Business plan for "internal use":

- As the saying goes, 10 minutes spent planning saves an hour of hard work. Having a clearly developed business plan for small businesses allows you to establish management processes. This is especially important when working in a team. A detailed plan excludes discrepancies and stipulates the steps that each member of the team takes in a given situation.

- Performance tracking. A well-designed business plan has a number of key performance points that your business must achieve over time. By how clearly you pass these "marks", you can draw conclusions about the effectiveness of business processes and "tighten the screws" if necessary. Plus, you can be confident that your team will focus on the right goals in the event of a temporary lack of leadership.

A well-designed business plan has a number of key metrics that your business must achieve over time. By how clearly you pass these "marks", you can draw conclusions about the effectiveness of business processes.

- Risk reduction. We have already written that it is impossible to foresee all force majeure circumstances, but the general pattern of actions in a crisis situation is a very useful thing. As a rule, such steps are quite versatile and can reduce risks. The item about who, when and under what circumstances will perform them should be present in the business plan.

2. Business plan for investors.

A master plan for business development, however, is needed and not only for internal use. In some cases, it may be presented to third parties. Very often, potential investors study a business plan for evaluation. The decision to invest in your business depends on how well all the nuances are worked out in it. In this case, the document has the status of a conditional "debt receipt" and is obligatory for execution. This could be a business plan for an employment center, grants or subsidies. To receive a subsidy for starting a business, the applicant must submit a number of documents to the employment center (CPC). Including - a business plan prepared in accordance with the structure, which is set by the CPC. Deviations from it are not allowed.

Where can I get a plan?

These days there are many opportunities and even more information on how to start a business. This article contains the main stages that every entrepreneur goes through, regardless of their experience on this path, mistakes that an inexperienced beginner can make and several options for working business ideas in the most popular areas.

Contents

About the case

The idea of ​​starting a business has visited the minds of many of our contemporaries. The reasons for starting your own business can vary.

Some want to have a stable and high income, for others self-realization is important, others want to make a profit through their hobby, and the fourth is interested in the very process of creating a company. However, hardly 10% of all comers realize their dreams.

Starting a business is a task that is within the power of every single-minded person. The main thing is not to ignore the main stages that every entrepreneur who decides to start his own business should pay attention to.

Motivation

The right message is essential in any endeavor. And in such a serious matter as the creation of your own enterprise - especially. The first step is usually the most difficult. Sit down and think about the prerequisites for a decision to start a business, the consequences, failures and prospects for the success of the enterprise.

Not without obstacles. You will have to work hard and learn even more. Not everything will turn out right away.

But as a result you can get:

  • Self-control over your life and work.
  • Unlimited income, growth and prospects.
  • The mode of work and rest, selected in accordance with your wishes.
  • Development and increase of business profitability regardless of the presence in the workplace.
  • Ability to competently manage assets.
  • The realization that, unlike others, you were not afraid to step out of your comfort zone and achieved what others only dreamed of.

From the first steps, an aspiring entrepreneur will feel active opposition from the most unexpected sides: criticism of family and friends, sarcastic remarks and unflattering responses from ill-wishers. This is in the order of things. You have already made a choice and are actively changing reality, while those around you are moving by inertia. Here are some tips to make the first steps to starting your own business easier:

What is an entrepreneur like?

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