There are a million questions for the aspiring entrepreneur, and some must be answered before you even launch your business. These tips will allow you to focus on the essentials and turn your idea into a workable project.
1. Write down your idea on paper.
A business starts with an idea. It does. And the main task in the first step is to put your business idea on paper. After you write a few words about your idea, a lot will become clear. This way you will not only structure your thoughts but also fill in the gaps that will be revealed in the process.
Describe the product, the associations it evokes. Describe how you see your business, using definitions that fit familiar subjects: “fun,” “cheeky,” “bright,” “relaxed,” “family-oriented.” Describe what kind of target audience you see in front of you. Many entrepreneurs do this as they go along, but it’s better to do it before you start.
Now share your idea with people close to you. Their questions and comments will help you make adjustments and add to the plan.
2. Decide on the amount of money to launch.
Many ideas don’t come to fruition without being tested at this stage. So let’s not neglect the calculations and look at the expense items you will face when starting your business:
• Registering you as a sole proprietorship or a legal entity.
• Creating your website.
• Rental of premises.
• Recruitment of necessary personnel.
• Design and printing of printing (possibly packaging).
• Photo and video shooting.
• Investments in the promotion of the company.
Do not forget to set aside about 20% of the resulting amount for contingencies!
Planning and estimating these costs is the best test of your idea.
3. Make a sales and cost plan
A great solution is to make three plans:
Optimistic. This is a plan for the ideal realization of your business: the highest demand, understanding paystub deduction codes, a large number of customers. Write down on paper how many customers buy from you daily. So you can calculate how much you will be able to sell in a month.
Realistic. Now reduce the figures from the previous plan by 30% and write it down again.
Pessimistic. Imagine that the sales at the start were not high, with much fewer customers than you originally assumed. It’s better to stick to this plan. So you will not be deceived in expectations.
Important: Don’t forget the fixed and variable costs. Keep in mind the monthly repayment of debit or credit, if there will be one in your case. Take everything into account and write down a net profit or loss statement.
4. Plan the composition of the team.
Now you need to decide which team will be able to deliver your plan. Here are the questions that need to be answered:
• Does your business need another manager besides you?
• Will you outsource some of the work or will all staff be full-time?
• What kind of work schedule will you follow?
• Determine your employees’ compensation system. Salary, percentage, bonuses, bonuses, or even intangible rewards.
• Will you have in-house corporate training, is it necessary in your field?
For many aspiring entrepreneurs, these questions seem irrelevant before and at the startup. But experience shows that the earlier the answers to all the questions appear on paper, the faster they will be realized in your business.
5. Decide what you’re going to do personally
On this subject, I have two interesting tips.
First, you have to initially think like you own a major international chain. That way, all of your decisions will lead the business to success.
Secondly, don’t drown yourself in operations, being both director, and loader, and courier, and manager at the same time. Hire employees at once. Otherwise, you will waste a lot of time which would be more appropriate to devote to the development of your company.
Take advantage of these tips and bring your idea closer to success. Most importantly, do not be afraid to act, make decisions, and take responsibility. Maybe your idea, like no other, deserves a successful implementation!