Many aspiring entrepreneurs ask themselves: "Where to start a business?" Often the first steps are the most difficult due to the lack of knowledge and experience, but they are worth taking and not giving up on your cherished dream.
How to start your own business - golden rules
There are some rules that will tell you how to start your business from scratch:
- Explore your opportunities and analyze the market;
- Chat with experienced entrepreneurs and take note of their recommendations;
- Do not start a business with funds set aside for other goals in your life (payments on loans, medical treatment, education of children, etc.);
- Before starting your own business, ask yourself the question: “What are your risks in case of failure?”; li >
- Do not get involved with projects that need serious financial investments;
- Plan actions on paper and meticulously write down each step that needs to be done to achieve the goal;
- If you have you have no experience, you should not borrow to open a business;
- Start a business in a niche familiar to you;
- Get ready for any scenario, any scenario is possible. No one is safe from failure, but always set yourself up for success;
- Don't stop, even if something doesn't work out, be optimistic.
How to start a business - milestones
It's not easy to have your own business, at first it will take a lot of time, forcing you to think about the implementation of your own ideas all day long. So before you think about how to start a business, check out the following steps.
Stage Determining Your Value
A person is the most successful in the area that suits his desires and interests. Therefore, it is worth choosing exactly the direction in which you are most comfortable. A great idea arises at the intersection of human needs and your interests. To understand how to start your business from scratch, honestly answer a series of questions. What are you willing to spend your time on? What is of most interest?
At first glance, it seems that defining a calling is not difficult - it is something that you do with great pleasure. For example, you enjoy building, writing, home improvement, or painting.
How to come up with a business idea from scratch? Set a clear task for yourself to come up with an idea and remember it every time. Your imagination and expanded horizons will help. An idea can come to mind spontaneously.
Stage Market analysis and choosing a niche for a future project
To figure out where to start your business, you should carefully analyze the market and decide on a niche. The advantage of choosing your own niche is that if a person is passionate about something, he tries to learn as much as possible about this business. For example, if you like caring for animals, then it is easier to start a business from scratch selling kittens. You know how to feed them, bathe them, care products, etc.
What is a business idea?
Every person who wants to start his own business, gain independence and prosperity, begins his activity with the search or creation of a business idea.
First, a business idea is aimed at making a profit.
The whole point of business is selling your product or service for money. Therefore, only such an idea, the ultimate goal of which is profit, can be called a business idea.
But the dream is also often associated with the desire to get rich. For example, you can dream of winning the lottery all your life without buying a single ticket.
Secondly, a business idea differs in that it answers the question of how to make money?
This is a very important difference. Basically, a business idea contains a way to make a profit, and roughly describes the process of making it.
It's not enough to come up with ways to make money. It is imperative to understand how to do this.
Only when the process of making a profit is thought out in detail, we can say that a new business idea has arisen.
There is an excellent test that can be used to test the readiness and maturity of an idea for a business: drawing up a business plan, which is an indispensable intermediate link between the idea and its implementation.
Material on the topic: "Business idea development" with full explanation and justification.
Logic and stages of business idea implementation
As mentioned in the previous paragraph, the condition for the existence of any business is the existence of entrepreneurial opportunities, by which we mean a favorable set of circumstances that creates the need for a new product, service or business. The entrepreneur searches for and recognizes an entrepreneurial opportunity. However, to create a successful business, it is necessary not only to identify entrepreneurial opportunities, but also to formulate a business idea and implement it.
What is the difference between the identified entrepreneurial opportunity and the business idea? An idea is a thought, impression, idea of something. An idea may or may not correspond to an entrepreneurial opportunity, i.e. to be successful, a business idea must be feasible in terms of the available entrepreneurial opportunities.
From the point of view of management sciences, there are different classifications of ideas. For example, there is the following variant of the classification and analysis of ideas  from the point of view of the reality of implementation in the context of the conditions and prospects of a particular market.
The first classification according to the degree of concretization of ideas. Ideas are divided into two groups:
the real idea is one that is fairly easy to explain to the rest of the world, while there is agreement on its competitiveness and viability, both technically and commercially;
An abstract idea is characterized by the opposite situation, and there are significant barriers to understanding and accepting this idea.
An abstract idea goes a long way to become an entrepreneurial idea.
The second classification is the degree to which the idea is fixed.
High degree of entrenchment - the idea is "pulled" by the market, which means that the idea is very closely related to meeting the real needs of customers and there is a commercial interest in this idea.
Low degree of entanglement - the idea requires “pushing” to the market, which is associated with a large investment of time and resources.
Your compass in the world of finance
Any business starts with an idea, but having one raw idea is not enough to create a successful business. All these ideas for creating a business are of little value without a competent business plan and a clear understanding of how a particular business works. But if you decide to become a businessman, we will try to help you figure out what stages you need to go through from a raw idea to project implementation.
How to choose an idea for creating a business
The first thing to pay attention to is your interest and from this already build on. It is much easier to achieve success in a field that you like. But for most beginners, as strange as it sounds, there are too many ideas that they would like to implement, this is certainly good, but you should not grab onto everything at once (this is a common mistake).
You can do the following, create a list called ideas on how to create your business and write there all your ideas that you would like to implement, and after the list is ready for each of these ideas, write the pros and cons ... Once you're done, pick the idea with the most pros and work on it alone. For small towns, here is a good selection of working business ideas.
Mistakes are part of success
We all know the proverb "The biggest mistake is to be afraid to make a mistake" in the implementation of the idea to create your own business, it is very relevant. Successful businessmen have tried dozens or even hundreds of non-working ideas until they found one worker (which made them their fortune).
If you learn something new, you have to make mistakes - otherwise you will not be able to fully understand what you have learned. (Robert Kiyosaki).
And such aphorisms can be found in any successful businessman. Of course, it learns better from other people's mistakes, but you need to understand that you cannot avoid your own and you should not be afraid of them, they should only motivate you to work harder, because you have taken another step towards your goal.
The biggest mistake we make is quickly giving up. Sometimes you just have to try one more time to get what you want. (Thomas Edison).
If you still have doubts after you have made a mistake, they usually sound like this - (whether you are doing, why not try something else), we advise you to read our Success Stories section, there you will find many interesting biographies, the most outstanding businessmen, and with a living example you will see how much effort they had to make in order to succeed.
Unfortunately, it will not work to create an ideal business plan, because unforeseen expenses and inaccuracies constantly arise. Therefore, in order to minimize losses, experienced businessmen advise to write all expenses with a small plus, for example, if you need to buy equipment and it costs $ 100, write $ 120 in your plan, etc., this will help you if an unforeseen situation arises ( or another option, always keep a certain amount in stock just for an emergency).
The role and purpose of the business plan
A business plan is a form of project presentation in the form of a compact document containing basic information about the investment conditions, the goals and scope of the project, the volume and range of products planned for production, resources, a specific action program for its implementation, possible economic and financial results. This is a detailed statement of the goals, conditions, ways and effectiveness of the project.
The main purpose and task of the business plan: to give a holistic assessment of the conditions, prospects, economic and social results of the project
- A business plan is a document that allows you to manage a business, therefore it can be seen as an integral part of strategic planning and as a guide for execution and control
- It is important to consider business plan as a planning process itself and a tool for internal management
- A business plan is in most cases used as a means of obtaining the necessary investments, thus it serves as a powerful tool for financing a business
- A business plan is used to substantiating the prospective business and evaluating the results for a certain period of time
- A business plan can be a good advertisement for the prospective business, creating a business reputation and being a kind of business card of the organization, therefore it should be compact, beautifully designed, informational <
- A business plan is a kind of document that insures the success of the proposed business.
- He demonstrates willingness to take risks
Business planning is a creative process that requires professionalism and art
It acts as an external document when establishing or expanding contacts with counterparties and potential financial partners:
- investors ;
- suppliers of raw materials, materials, equipment;
- intermediaries in the sale of the company's products;
- enterprises and organizations with which it is planned to cooperate with scientific and technical, production, investment and other activities;
- possible sponsors of the enterprise, etc.
What the business plan should show to the investor
Approaches to developing a business plan
There are two main approaches to developing a business plan.
- The first is that the initiators of the project develop the business plan themselves.
- In the second approach, the initiators of the business plan do not develop themselves, but are the customers. The developers are firms, groups of authors, experts and consultants.
Procedure for working on a business plan