Powerful Considerations when Starting Your Own Business
What does it take to start your own business? To many, the
thought of starting your own business may be too daunting that
your give up before you even start. Let's analyze what a typical
start-up needs:
Start-up Capital
There is no secret that money talks the loudest of all. As a
future entrepreneur, you may well know the fact that capital is
perhaps the most essential part of setting up a business, both
online and offline. Lack of start-up capital not only puts your
business at a disadvantage, it also makes cash flow a serious
issue. Over time, it also makes it difficult for you to expand
your business.
The good side is that start-up capital in the form of small
business loans are readily available at most commercial banks
around your country. As long as you have a good credit rating,
getting small loans should not be much of a problem. One
important thing to remember here is to never borrow more than
what you need to get started.
You loan amount need only cover for the basic necessities of
business. Start your business small and control your finances
daily, monitoring everything you spend on and trying to cut
costs where ever possible. When your business cash flow starts
working in your favor, you are ready to safely take out another
business loan for expansion of business activities.
Business Experience
Most people are afraid to start their own business, simply
because they have "no experience". Therefore, they
never get started at all, and never end up gaining that
experience in the first place.
Most people are afraid to enter into a business venture because
they fear failure due to lack of experience. It's a
Chicken-and-Egg story, or a Catch 22, or whatever else you can
call it.
A Solid Business Plan
Any business is more likely to succeed if they have a definite
plan of action to follow. Unfortunately, in reality most small
business and home based businesses have no idea on developing a
business plan that drives them to success. That is the reason
why 70% of businesses fail within the first year. A solid plan
needs to state exactly WHEN and HOW you will make money.
Before you get into business, make sure your business plan is
laid out right to the very minor details. You need to know:
- Your target market
- The average cost of one product
- Your profit margin on each product
- Your expected break-even point
- Cash flow projections
Here is a good book on business plans:
http:/
/www.home-business-association.com/rd/bplans/
A Mentor System
A mentor is someone who you admire, someone in your line of work
or business that is already having the success you dream of, and
can teach you exactly how to achieve the same success yourself
when you start your own home business. In reality however, most
people could care less about your business or you. We are all
selfish by nature, and who would want to impart seasoned
business skills to a competitor, who will be a threat to their
business.
This mentor will help you in a win-win way that is mutually
beneficial. Almost all business books will tell you that in
order to be really successful, you MUST associate with those you
are already having success, and duplicate their actions.
Starting from Scratch Vs Ready Made Business
Opportunities
All these factors need to be considered when starting your own
business. The absence of any one aspect can mean trouble, either
when starting up, or later on as your business develops.
Considering these factors, it is no surprise that many are
turning towards business opportunities and systems such as
network marketing. In these systems, all the above factors are
taken care of, and you can start your own business without any
worries.
These systems are especially attractive if you are broke and
have no business experience. You are in fact buying a proven
system, which with your effort, can be turned into a thriving
business.
Here's to your success. Cheers.