Hello! Today, let’s talk about how to start a business and how to become an entrepreneur Complete business plan. As a rule, people who want independence want it. Creating your own business gives a number of advantages, especially when compared with regular employment. But to start, you need to weigh everything carefully, evaluate your capabilities and think about the details as much as possible.
To be honest, starting a business without making serious financial investments is difficult, but possible. The conversation in our article will go about how to do it right and not to be left with nothing.
- 1 How ready are you to open your business
- 2 What disturbs potential entrepreneurs
- 3 How to start a business from scratch
- 4 How to get money for business development
- 5 How to start a business
- 6 Governmental support
- 7 How to become a successful entrepreneur
- 8 Ideas for opening your own business
- 9 Personal qualities of a successful entrepreneur
- 10 Trainings for those wishing to start their own business
- 11 Conclusion
How ready are you to open your business
When deciding to open a business or start a business, one desire is not enough. There should be an understanding of a few very important points:
- You need to understand that you can lose not just time, but money;
- In the absence of experience investing in the business of recent accumulations is stupid;
- When jointly managing business with a partner, you will directly depend on each other;
- You can not learn to do business in a short time;
- The most important thing you can lose is your reputation. Money can earned, and it is almost impossible to restore a spoiled reputation;
- It is too ambitious to think that everything can pre-calculated;
- To open your business to show all the enemies what you are capable of is at least short-sighted.
If you clearly understand these simple nuances, you can achieve a very real success in the chosen field.
All the big businessmen once also took the first step, from something they started. Nothing prevents to follow their example.
What disturbs potential entrepreneurs
Anxiety and fear of the unknown is experienced by every novice entrepreneur. Despite the fact that there is an idea, the business plan is developed, everything is analyzed. But the unknown causes unpleasant sensations.
Let’s try to figure out whether it’s so terrible to start your own business and consider the most common fears of beginning businessmen.
- Fear that there are no customers and buyers . In such a situation, conduct a survey, from a third party, how your environment looks at this idea for your own business. But be sensible: do not soar into the sky after hearing praise, and at the same time do not forget that no one has yet canceled envy;
- Fear of being left with nothing, fear of risks . If everything planned in advance, the strengths and weaknesses of your business have been identified, which means that certain risks have already been taken into account. The best way to overcome this fear is to keep the risks under control.
As soon as you start your business, you will have to deal with various obstacles that need to be learned to overcome. Sitting and fearing are not the best idea for business prosperity. It is best to try to take your fears under control, but for this you need a quality such as perseverance.
How to start a business from scratch
The question that arises in most potential entrepreneurs is one: “What about money? How to start a business without money? “. It is these thoughts that are a deterrent, a kind of a brake on the development of one’s business.
Of course, starting capital is an important factor, nobody denies this. But first you need to decide which direction you want to develop, what goals you set, how you plan to achieve them. And only then look for sources of cash and think about how to make money .
Let’s analyze with what it is possible to start a business, if the capital is minimal, or how to start a business without initial capital:
- If you have knowledge, experience in any field of activity, you can use them as a platform for launching your project;
- It is necessary to understand that running your business is hard work. Doing nothing and getting millions will not work;
- To adjust the whole process, it will have to dealt with 24 hours a day.
Compare the business without starting capital investments and with start-up investments. For clarity, we will present in the form of a table:
|Criterion||Business without investments of capital||Business with investments of capital|
|1.Zatrata money at the start of the project||None||Present in significant quantities|
|2.Zataty monthly||None||Present in significant quantities|
|3. The complexity of the organization||Low||Medium, high level|
|4. The existence of competition||High level||High level|
|5.Payback||With the receipt of the first income||Take a lot of time|
|6. The level of demand||Tall||Tall|
From the table, the level of potential risk is also clear: if there was no investment of funds, the maximum that this time and the spent efforts can be lost. With significant financial investments, the risks are high: you can lose not only your capital, but also other people’s funds.
How to get money for business development
If the start-up capital is still necessary, consider the most effective options for obtaining cash.
Where to get money :
- Invest in your savings. By-the way, it is considered the safest and most reliable option;
- Getting a loan from a bank. This is real, if there is something to be pledged to the bank. Without this condition, loans will be refused. A loan can be taken for uncertain purposes and for business development. A pledge is required in either case;
- Borrow from friends or family. If you are sure of success and the amount is small, why not. If the case does not justify the hopes, there will be nothing to return the debt, the relations with the close people will definitely deteriorate. If we proceed from this, it is easier to arrange a loan;
- Find an investor. It can be one person, who was interested in your project or organization as a whole;
- Find a partner who will invest his money in the development of the business;
- Start with a minimum (issuing one unit of goods or providing services to only one customer);
- To issue a state subsidy (more about this will be discussed below);
- Collect money through crowdfinding. This is the collection of money from the population by any amount. For example, the collection of money for the release of a new album for the famous vocal group is announced. Anyone can make investments.
All these tips will allow you to get the right amount of money available, and most importantly, legal ways.
Next, we’ll look at How to start a business and preparing for your own business.
How to start a business
The person who decided to start his own business evokes ambivalent feelings: someone considers him desperate and insane, and someone admires courage and determination.
Sources in which you can get information on the opening of your business now a lot (take for example our site How to earn money), you just need to use them correctly to get the maximum practical benefit.
Let’s take a closer look at the steps that need to be taken to become a successful entrepreneur.
Step 1. Develop a business idea
Any business begins with the fact that someone had an idea for them to do. The main thing is not to make a mistake in choosing an idea . Entrepreneurs with experience say that to formulate the idea on a regular sheet of paper write 10 options that appeared in the head. Then they paint the merits and demerits of each option.
But you can just go to the section of Business Ideas and find an idea for yourself.
Step 2. Selecting a market segment
Choosing the right niche in the market is very important for a beginner entrepreneur. At the initial stages of development of business it is not necessary to choose services or the goods which do not use wide popularity. But it is necessary to prepare for a big competition. Therefore, careful analysis of the market will not prevent you from choosing your place on it.
Step 3. Business plan
The presence of a carefully thought-out and formulated business plan allows you to evaluate your capabilities, and also to analyze what you can get in the near future, and what in the long term.
The main points of the business plan
- Description of the main activity;
- Planned result;
- Probability of loss of funds;
- Economic analysis;
- Stages of business development;
- Time allocated for each stage;
- Calculation of the costs of one-time and periodic;
- The planned final result (what is planned done when the result is achieved).
Step 4. Business Registration
When the decision on the activity is taken, the business plan is drawn up, it is necessary to pass the registration procedure as an individual entrepreneur or LLC(limited liability company). The creation of a legal entity is a little more labor-intensive than the discovery of an IP.
When you register, you get the legal right to do business. We also register with the FIU, the Social Insurance Fund, the Mandatory Health Insurance Fund .
The package of necessary documents includes:
- Original or photocopy of the passport in good quality;
- Original or photocopy of TIN;
- Receipt for payment of state fee ;
- Document on registration with the tax authority;
- Statement on the choice of the tax system .
You can go through the procedure in person or contact specialists who deal with similar issues.
Also, to conduct business, you may need to open a settlement account .
IP – the most known at the moment, a form that allows you to carry out entrepreneurial activities. This is mainly due to the simplicity of registration, which is available to any citizen.
In the discovery of IP there are advantages and disadvantages, this is normal and is present in any business.
Positive moments of IP discovery:
- Simple registration procedure;
- All activities are under the control of the entrepreneur, he also decides when to stop it;
- It is not necessary to involve an accountant to keep records;
- All profits are the property of the entrepreneur, he has the right to dispose of it at will. The main thing is to pay taxes in time.
Disadvantages of IP:
- In the event of debts arising from obligations, the entrepreneur is responsible for all his property. This should remembered at the stage of business organization. If you plan to develop your business in the commercial sphere, in the event of non-fulfillment of credit obligations, compulsory forms of repayment of debt can applied;
- Regular inspections by regulatory bodies (taxation service, etc.);
- Lack of profit (it is impossible to predict whether the activity will bring a good profit);
- The obligation of the entrepreneur is regular contributions to the Pension Fund;
- An individual entrepreneur can not sell a business;
- Biased treatment of the form itself: many businessmen refuse to cooperate with individual entrepreneurs simply because they consider this form of activity to be frivolous. It is clear that this is a delusion, but it has a place to be;
- Often there are situations when individual entrepreneurs are not allowed to participate in the tender;
- The procedure for bankruptcy of an IP is conducted in accordance with the rules applied to the bankruptcy procedure for individuals .
Analysis of the above pluses and minuses will allow a beginning entrepreneur to more responsibly approach the choice of the registration form, this will save time, nerves and money.
Step 5. Selection of equipment and premises
If you have decided on the place of business, the next step is to purchase the necessary equipment. The costs will depend directly on the chosen sphere. For example:
- If you open a trading point, you need equipment for trading (refrigeration, scales, etc.);
- in case you plan your own production, you need a whole line of equipment;
- I.f the case is conducted on the Internet, everything is easier. But when you open an online store, you need a warehouse to store the goods.
Step 6. Advertising and business promotion issues
These issues require serious attention and investment. In attracting as many clients as possible, the main task of any business is. To expand the client base, we need competent advertising.
Online business also requires the development and optimization of the site to support the business.
Promotion plays a big role. In order for the client to tell you about his surroundings, he should be pleasantly surprised, give him more than he expected to receive. For example, a discount on a product or service, a small gift.
We mentioned above the state support for start-up entrepreneurs. Further on how to get it and how to use it correctly.
In our country there are several types of state support for entrepreneurship. Namely:
- Allocation of subsidies;
- Holding exhibitions and fairs;
- Free advice on various issues;
- Assistance in renting a site or premises for an enterprise.
Briefly describe each option.
The allocation of subsidies is the most relevant form of state aid. Two types of subsidies are given out: those who have just planned to start their own business, and those who want to modernize production, to develop at the new level the already existing business.
In the first case, you have to prove that your business will bring tangible benefits to the region, that all risks have calculated. I.n the second case, the businessmen who have already taken place receive a refund of a part of the expenses incurred (for paying loans, leasing payments, etc.).
ON any case, not only the prospects of the chosen direction are taken into account, but also the priority for the entire region. Priority is given to: agriculture, medicine, education, new technologies, cultural sphere.
Assistance in renting a site or premises for an enterprise is not free, but is more profitable financially than renting from private individuals. Favorable conditions are provided that save money.
Holding of exhibitions and fairs – the provision of free retail space to beginners entrepreneurs. Allows you to reduce advertising costs, share experiences, establish business contacts.
Free consultations – help in solving specific issues, which sooner or later every beginner will face. You can ask questions to lawyers, economists, labor and employment specialists.
To the note to the businessman: The state carries out support under conditions of strict accountability for every amount spent.
How to become a successful entrepreneur
It is unlikely that someone will answer this question accurately. Successful businessmen become, putting a lot of effort, working almost round the clock, earning invaluable experience and knowledge. Everyone goes their way to success.
Errors happen to everyone, but they are part of the way. The main thing is to work to prevent them constantly.
Typical mistakes of beginning entrepreneurs
- Start a business just because you think your idea is brilliant. Your idea should be evaluated potential buyers and customers, not yourself;
- Start your business without analyzing the market. For what it is needed it has already been considered earlier;
- Start without knowledge in the planned field of business. A good example: to open a workshop for the production of parts to machine tools, nothing about machines without knowing;
- Expect millions of earnings in the first months after the opening (the business requires patience and time);
- Do everything yourself: to cope alone with all tasks is simply unrealistic. If you plan to do business for a long time, you will have to hire employees. Good employees are not a big expense, but an investment!
- Start a business without a clear business plan. To put it mildly, the idea is bad. You yourself will not have a full picture of your activities and what goals you set;
- Incorrect prioritization. The main priority is customers. They will, the whole process will adjusted;
- Lack of desire to learn and improve. Learn constantly, learn new things, expand your horizons;
- There is no general interest in the sphere in which business is planned. Simply put: do not open a hockey school, if you do not like hockey;
- There is no healthy perseverance. Many companies came to collapse only because the management refused to deal with the flow of problems.
Business is a struggle, often with yourself and your shortcomings.
Ideas for opening your own business
Below are the links to the selection of business ideas:
- Flower Shop Business Plan With Complete Calculations
- How-to open a beauty salon from scratch – step by step instruction
- Ho.w To Start an Ecommerce Business Top Products to Sell on the Internet
- How Start Green building business – Start from Scratch
- Make Money From Facebook without investment
- Organic Chicken Farms | is Organic Chicken Breeding Profitable?
This is not a complete list of ideas for business that a beginner entrepreneur can do. There are many of them. Find your idea and implement it.
Personal qualities of a successful entrepreneur
We figured out how to become an entrepreneur. The idea for creating a business from scratch has already chosen, an ideal business plan has drawn up in all respects, but in addition to all this, it is necessary to have something else important. Namely, certain personal qualities. What, we learn now.
- Decisive character. Be ready to take on the role of leader, who can be responsible for his words and deeds. It is important to learn how to make complex decisions, listen to the opinions and advice of others, but leave the final decision for yourself;
- The ability to invent something new and not to think according to the pattern. The share of adventurism is needed, but within reasonable limits. But do not forget that boldness and recklessness are two different things;
- Love for the chosen cause. If your eyes do not burn, you will not attract other people with your ideas;
- Rapidity of reaction and ability to act in difficult situations. Useful always, especially in business. It is impossible to foresee everything, but improvisation can help out if necessary;
- Don’t lie. Do not deceive yourself, employees, customers. Do not put unrealistic deadlines, do not try to sell what is not;
- Do n0t do business halfway. But distribute your time wisely;
- Ability to be flexible. Do not strictly adhere to the initial plan, if the actual situation does not correspond to this. Flexibility is valued more than excessive stubbornness and a desire to be right in everything;
- Intuition. There are times when it helps out better than logical reasoning;
- Propensity to introspection. It avoids many mistakes, corrects old ones and does not commit new ones.
The list can continued. By developing these qualities
You can improve not only your life, but also significantly advance your business. In time, you will note the most important for yourself and take care of their enhanced development.
Personal qualities are largely responsible for the success of the whole thing. The conducted researches have shown that the main driving force for many is the need to realize oneself in a favorite business. An active life position should become a common feature of those who strive for success in any field.
In general, one must be able to combine personal qualities with business ones, to take advantage of those and others. Since any entrepreneurial activity is fraught with risks, one must be firmly confident in the correctness of their actions and future success.
To achieve success in your business, you need to correctly combine the experience with natural talents. This will allow you to move faster to the intended goal and reach it in a reasonable time.
Trainings for those wishing to start their own business
The main tasks are:
- To teach business communication skills;
- Develop an ability to resist competitors;
- To familiarize those who want to start their own business with the peculiarities of applying economic and legal norms;
- Present various methods for solving problems arising in the course of work.
It is often suggested in a playful form to analyze the realities of the market. Anyone can attend such events, regardless of whether you are running your business or are just planning to open it.
Training courses often allow you not only to gain the necessary knowledge, but also to gain confidence in your abilities, which is so often lacking. In many respects due to them it is possible to avoid a mass of gross mistakes in the conduct of their business.
As for the financial issue, it is not always necessary to pay for attending trainings. Often there are free classes or organizers provide bonuses and discounts for a visit.
Now you know How to start a business! And at the end of the article I would like to say: if you want to become a successful entrepreneur, change your worldview, surround yourself with people who have succeeded in their affairs.
Act, but do not follow the whole and the other’s recipes of success. Only through working on yourself, over your mistakes can you achieve the desired result. Remember, as folk wisdom says: “Under a recumbent stone water does not flow.”
No one is born an entrepreneur. They become, at times trial and error. If the idea of starting your own business does not give you rest, leave doubts and move forward! And we do our best to help you with this on the pages of our website!