Businesses can be one of the most self-sustaining forms of employment to the worst kind of choice to make and end up in bankruptcy. It's just a matter of planning, perseverance, good choices and patience. In order to succeed in the entrepreneurial world, one must know how to manage a business and correctly make the right decisions in order for one's business to prosper.
The first thing that one must consider is capital. Capital is the amount of money that you want to invest in starting your own business. This is the money which you let go and the money you risk in order for you to start earning income. The amount of capital varies from one type of business to the other. For small scale businesses, sole proprietorships, you only need to invest a small amount of capital. For partnerships, big scale businesses and even corporate businesses, huge amount of capital is needed.
Now that you have capital, choosing the right kind of business is next. In this step, you must have a very good grasp or knowledge and should be very interested in the business that you plan to open. If you are not interested and your heart is not up for it, your business would likely fail. You must also have a vast knowledge of the technicalities and problems that may arise from your business and have the ability to troubleshoot and deal with the problems.
The next thing that you should have in starting and maintaining your business is patience. An instructor of mine told us before that the first year of business would most likely be a deficit. Do not expect to yield profits at the very start of your business practice, but if it does then that would mean that your business has hit a niche in the populace and would most likely be very profitable. Continue to be patient and persevere in every situation, through good or bad times and you will see the prosperity that it would bring. And lastly, always thank the Lord your God for only through his grace, blessings and favor will you be able to succeed not just in your business but in your life as well.
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How to have a successful business – 01-19-2014,08:56 AM
Yes, I think people don't realize how serious and hard opening a business can be. It is very expensive, and there are many unexpected costs that may occur. When deciding to open a business, you need to realize the costs that you know you have, plus a lot that will come up along the way, if something breaks, or you need to do something a different way. Capital and a good business plan are probably the most two important things to having a good business!
To me personally, the requirements to have a successful business are (1) KNOWLEDGE about doing business, (2) PASSION in doing the business and (3) COMMITMENT in running the business. Sometimes, when we have gathered enough capital, we thought that we are ready - we thought that we have the passion in doing it, and we thought that we can commit to it. However, running a business not only based on what we thought how it is, I have have met so many businessmen who never succeed in the beginning not because they do not have these thing, but there are external factors affecting their operations that sometimes pinned them down to the extent that they almost gave up. But because they have these three things.. they refused to give up and started all over again, and recovered until the business runs pretty well.
That I think, is how to have a successful business.
The one thing new business owners do wrong is not planning their capital well, then having the restaurant fail quickly.
Beautifully written fredkawig!
Apart from the points you touched I think it's also important to always stop, look back and analyze the progress of your business up to that point, then tweak and continue. You don't want to fall intro the trap of going forward with your eyes closed fearing the money loss or not reaching your dream/goal. This happened to me in the past and there were times when I lost my faith in the business I invested passion, time and capital in.
Having your own business may be the harder choice than simply getting a job, but when success comes, you'll remember why you started in the first place!
This was very interesting and I was not aware of some of the things you listed. This is general knowledge that everyone should learn before starting out. If a moderator could sticky this, it would be great.
- Join Date
- Jan 2014
These are excellent tips that any aspiring business owner should follow. Starting a business takes a decent amount of careful planning.
All very solid points. I agree with everything you have mentioned. When I started my business, I found it hard to follow the 'patience' bit. I wanted things to fly off from the start. But I didn't give up and i'm quite happy with everything.
- Join Date
- Feb 2014
Having just joined the forum I have been having a quick browse through. I see it is primarily aimed at the US small business market. However I would think the basics of formulating a small business plan hold good no-matter where you are. So, as an expat Brit, having started and run my own small retail business in the UK for 20 years, my own small input may have some relevence for those thinking of going down this road.
One of the things needed for anyone starting out is a good VIABLE business plan. It's no good drawing up a business projection, pulling figures out of the air, because they make it look good. Especially if it has to be presented to the bank manager when one goes for a loan or overdraft facility.
If the business is being started from scratch, storage facilities or a retail store required, these have to be found. If they need refitting, estimates of all materials and labour costs are required, factoring in "unforseen" problems, allow 10-20% for these possibilities.
When all finance figures to get the property into a "fit-for-purpose" situation have been acquired; stocking and initial cash flow forecasts have to be drawn up. Stocking requirements and amounts are next. Not difficult, get hold of as many suppliers as possible, and play one against the other, to get the best deal you can. Remember, initial stocking is usually quite high and they want that business.
The last item is a cash flow forecast. You have to meet all your business overheads, rent, power etc plus any staff costs, right from the off, while you are trying to build up your business to a break even point. On your cash flow forecast all the weekly/monthly overheads need to be put down. Against this estimate your weekly/monthly income, again be realistic, if you genuinely feel you will reach break even point in six or twelve months, show it on paper as taking nine to fifteen months. Nothing impresses a bank manager more on your next visit than better than expected turnover figures.