How to start a business from scratch? This question is often asked by employees who are tired of working for someone else, or have reached the "ceiling" in their already existing business. At the same time, reasons that drive people to creating their own business are very different. For some of them — it is an opportunity for self-realization, for others — it is a way to earn money and be independent, for the third — a departure from unemployment. However desire is just the beginning, but what does one need to do next?
The first, and the most important thing is an understanding whether or not an individual is ready to lead his own business. Private business, especially in the beginning is very complicated and causes a lot of problems. Only after some time it might generate income, freedom, independence and all the rest. The next step will be deciding what exactly a new businessman wants to do. If a person has firmly decided that he wants to work on his own, then he needs to decide in which sphere the business will be launched. The proper and competent idea is only half of the battle. However, when choosing a business idea, one needs to keep in mind that if the idea looks great to you, your family and friends, it does not necessarily mean that the others will like it as well. For successful business it is very important that an idea has sufficient numbers of loyal customers and attracting new ones.
Then goes the business plan. “Writing a business plan seems like a chore, but it’s critical. It doesn’t have to be formal or long — just a few pages is fine.”(Taulli nytimes.com) It just needs to cover basic points, like overview of the business, product the company will be selling (goods or services), business strategy and concept, model and the employers (at least close number of people that will be needed at the beginning) One needs to understand that business plan is especially important if it will be shown to the investor. A well-designed business plan is not only the key to the heart of the investor, but also a guarantee that the business will prosper. Business plan has to sound ambitious, but not unrealistic. After business plan goes the counting. At that point one will need to answer the following questions: How much money is necessary to invest in the business? Is there enough equity or debt capital needs? Also, the cost of opening a business will need to be calculated — this is worth considering before rather than after the business has been launched. The next step will be finding a reliable business partners. At that stage, I am not talking about the partners with whom you could start a business together. I am talking about those individuals or companies that help you grow your own business. This can be, for example, tax consultants, lawyers, accountants and business consultants (in addition they might help with writing business plans, and with many other issues after the opening). To partners one may also include suppliers, advertising agencies, companies recruiting, etc. As soon as business partners are found, it is time to plan first advertising strategy. The way the company gets on the market, largely will determine its future success. Do not forget to think not only about business cards, but also about where you will advertise, in what form and to what extent and at what amount. If everything is done properly, you can hit the road running. However the most important thing to remember is that the continued success depends only on the leader of the company.
“The ability to experience negative emotions without falling through the floorboards is vital to entrepreneurs and business leaders”. (Koehn, nytimes.com) First of all, in order to be a good manager one has to understand that a leader of the company must lead the basic core processes, as that is the real job of running a business. The leader has to believe in them and be actively involved in them. Secondly, after all the strategies of the company are highlighted, they also need to be executed well, as otherwise it will lead to failure. If any problems have arisen, the leader is the one, who needs to get to the heart of an issue, and “drill down, until the answers are clear.” And the last, but not the least important issue in the managing process is decision making. In order to make a good, and correct decision one needs to define what exactly is the decision that needs to be made, what it relates to. Then, the manager needs to brainstorm all the ideas he (or maybe his colleagues) might have about the problem, that needs to be resolved. After that goes the visualization, process of imagining the outcomes of each alternative. And the last thing in the chain is getting moving on the made decision. No worrying and second-guessing. No decision is set in stone. (Making decisions, sba.gov)
If all of the aforementioned tips are followed, one should not have problems launching private business. However it is very important to remember that everything depends on the desire and willingness to work and develop.
"Making Decisions | SBA.gov." Making Decisions | SBA.gov. N.p., n.d. Web. 01 Oct. 2013. http://www.sba.gov/content/making-decisions
Koehn, Nancy F. "Lincoln’s School of Management." Nytimes.com. N.p., 26 Jan. 2013. Web. 2 Oct. 2013. <http://www.nytimes.com/2013/01/27/business/abraham-lincoln-as-management-guru.html?pagewanted=all>
Taulli, Tom. "The Basics of Starting a Business." Nytimes.com. N.p., 02 Sept. 2009. Web. 2 Oct. 2013. http://www.nytimes.com/2009/09/03/business/smallbusiness/03sbizguide.html