What does it take to start your own business? Many people may think that starting your own business may be too daunting and give up before
they even start. Let’s analyze what a typical start-up needs:
Start-up Capital
There is no secret that money talks the loudest of all. As a future entrepreneur,
you may well know the fact that capital is perhaps the most essential
part of setting up a business, both online and offline. Lack of start-up
capital not only puts your business at a disadvantage, it also makes cash
flow a serious issue. Over time, it also makes it difficult for you to
expand your business.
The good side is that start-up capital in the form of small business
loans are readily available at most commercial banks around your country.
As long as you have a good credit rating, getting small loans should not
be much of a problem. One important thing to remember here is to never
borrow more than what you need to get started.
You loan amount need only cover for the basic necessities of business.
Start your business small and control your finances daily, monitoring
everything you spend on and trying to cut costs where ever possible. When
your business cash flow starts working in your favor, you are ready to
safely take out another business loan for expansion of business activities.
Business Experience
Most people are afraid to start their own business, simply because they
have “no experience”. Therefore, they never get started at all,
and never end up gaining that experience in the first place.
Most people are afraid to enter into a business venture because they
fear failure due to lack of experience. It’s a Chicken-and-Egg story,
or a Catch 22, or whatever else you can call it.
A Solid Business Plan
Any business is more likely to succeed if they have a definite plan of
action to follow. Unfortunately, in reality most small business and home
based businesses have no idea on developing a business plan that drives
them to success. That is the reason why 70% of businesses fail within
the first year. A solid plan needs to state exactly WHEN and HOW you will
make money.
Before you get into business, make sure your business plan is laid out
right to the very minor details. You need to know:
– Your target market
– The average cost of one product
– Your profit margin on each product
– Your expected break-even point
– Cash flow projections
Seek out a Mentor
A mentor is someone who you admire, someone in your line of work or business
that is already having the success you dream of, and can teach you exactly
how to achieve the same success yourself when you start your own
business. In reality however, it is difficult to find a mentor in your exact line of work. You may want to find a mentor that has a successful business but isn’t a direct competitor.
All these factors and many others need to be considered when starting your own business. By being diligent, working hard and seeking guidance from a mentor will set you on the right path.