This article is the continuation of an earlier one called. tips for starting a business.In this article, we will continue to see more tips or recommendations that we should take before creating or starting a business of our own.
1. Make a business plan
Before starting a business, it is fundamental that we make our business plan, this will allow us to know the viability of the business, i.e. to know if this will be profitable business and, therefore, we must continue with the project; Or if it will not be profitable and, therefore, we must look for new business ideas.
2. Before starting a business
In the business plan we will indicate in writing our objectives, strategies, resources, processes, investments, expenses and income; So the business plan will serve as a guide to implement and manage our business and thereby achieve greater efficiency and minimize risks.
3. Reduce investment
Doing business is not only looking for the highest income or possible sales but also, looking for the lowest costs or expenses.
When investing in a new business, we must ensure that our investment is the smallest possible, but that does not mean that we have to reduce the quality of our equipment or inputs.
For example, if our business involves the acquisition of certain machinery or equipment, we should not rush and buy the first machinery or equipment we find, but we must take our time, thoroughly research the market and compare products and prices.
4. Book a small budget
When creating a new business, it is common for the investment or actual expenses to end up being higher than the budgeted, i.e., that in the end, a greater investment is needed than initially budgeted.
So it is advisable, when making our budgets or investment projections, that we always reserve a small emergency capital, which we can use in case we need a bigger investment, and thus solve these inconveniences or unforeseen.
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5. Care for societies
If we plan to partner with someone to start a business, it is advisable to look for partners who have the same aspirations as us, who are as motivated as us to start a new business.
We must look for partners who can contribute things that we cannot contribute, for example, that can provide commercial contacts, experience or knowledge on a certain topic.
Also, before forming the company, we must make clear (preferably in writing) all the agreements and all measures that will be taken in case the company or the business does not obtain the expected results, for example, we must agree in advance how the Profits, what will be the functions of each one, how much each one will contribute, what actions will be taken in case bigger investment is needed, what measures will be taken in case one of the partners decides to retire, etc.
6. Good location
If our business involves the acquisition of a place where our customers attend, we must choose the location well, for this, we must take into account who our products or services are directed to, the proximity or access that our customers and suppliers have, the location of our competitors, the costs of rent or purchase of the premises.
If we look for a place in a central or crowded place, we will be closer to the consumers, but we will have greater competition, and the cost of the premises will be greater. On the contrary, if we choose a place in a less central place, the cost of the place will be lower, but we will be further away from the consumers, although if our product is of quality, and we make an adequate publicity, consumers will look for us wherever we are.
Another point to take into account when deciding on a particular place, is that before taking it, we must be sure that we will be granted the license of operation, we should go to the authority in charge of it, and consult them if they would give us The license for the type of business that we want to create, and do not assume that other similar businesses in the area, we will also give. Likewise, we must make sure that we will not have problems with the neighbors, for example, that they could complain in case of much noise.