Know what you need to jumpstart your own business.
1. LOOK WITHIN (Self-analysis)
Do you have what it takes to go into business? A successful entrepreneur possesses personal qualities that will help him grow and thrive his business. Extensive research by the Management Systems International reveals ten Personal Entrepreneural Competencies (PECs) that lead to success. These are grouped into what are known as the Achievement Cluster, the Planning Cluster, and the Power Cluster.
Take a look at these competencies.
2. LOOK OUTSIDE
After looking into yourself - your personal qualities, your interests, skills, experiences, hobbies, and how these would orient you towards a business of your own, you may now look around. See if the environment is a conducive one for entrepreneurship.
3. DETERMINE PRODUCT LINE
You can now focus on what specific product or service you want to sell. Some of the factors given for consideration will help you come up with a great idea for a product. What specific fields are you interested in? Can you apply your skills, hobbies, or work experience to this field?
4. CHOOSE BUSINESS TYPE
Would you want to run a business on your own, with a partner, or with more people? Weigh the odds. Click here to view the advantages and disadvantages.
5. WRITE A BUSINESS PLAN
After you have made the preliminary decisions, you can start preparing a business plan. There is no such thing as an all-purpose business plan. You should write your business plan according to the unique factors and conditions of your enterprise.
The business plan has four main components: the marketing plan, the technical plan, the organizational plan, and the financial plan.
Click here to access guidelines that may help you in writing your business plan.
6. RAISING CAPITAL
Money with which to start and run your new business can be raised in various ways. Obviously, the money can come from your own pocket. This may be what you have saved for years. Or this may be proceeds from selling a car, a lot, jewelry, or other prized personal belongings. Possibly, you have stock certificates or government bonds that you can readily convert into cash.
Using your own money is, of course, the safest way to finance a business. The next safest way is to borrow from close relatives and friends. You will have to pay them back, naturally, but they are usually prepared to be more flexible about when you repay them. Furthermore, you may also be able to get away with paying very low interest rates or none at all.
7. LOCATING YOUR BUSINESS
Finding a site for your business is crucial. In the retail business, your sales potential depends mainly on your location. Like a tree, a store draws its nourishment from the area around it. A store owner is already half successful if he sets up shop in good place.
8. REGISTERING YOUR BUSINESS
A new small enterprise has to be registered in various government agencies. The complexity of registration varies according to legal form of the business. A single proprietorship is the easiest to register, while a corporation requires more elaborate procedure.
9. HIRING AND TRAINING PERSONNEL
Even if you're running a very small operation, you cannot expect to do everything yourself. As a manager, you must see to it that you have the right employees and that you train them well, and motivate them to do their very best at work.