Advice before beginning a business

13 December 2008 - 20:21

This article is the denominated continuation of one previous one: advice before initiating a business.

In this article we will continue seeing more advice or recommendations than we would have to take before creating or initiating an own business:

To formulate a plan of business

Before initiating a business, it is fundamental that we formulate our plan of business, this one will allow us to know the viability the business, that is to say, to know if the business will be profitable and, therefore, we must continue with the project; or if he will not be profitable and, therefore, we must look for new ideas of business.

In the business plan we will indicate our objectives in writing, strategies, resources, processes, investments, debits and income; reason why the business plan will serve to us as guide to implement and to administer our business and, that way, of obtaining a greater efficiency and of diminishing the risks.

To reduce the investment

To make businesses is not only to look for the majors possible income or sales, but also, to look for the smaller costs or expenses.

When investing in a new business, we must try that our investment is the possible minor, but without it means that we must reduce to the quality of our equipment or consumptions.

For example, if our business implies the acquisition of certain machinery or equipment, we do not have to hurry and to buy the first machinery or equipment that we find, but must take our time, investigate either the market and compare or products and prices.

To reserve a small budget

When creating a new business is common that the real investment or expenses, finishes being majors that budgeted, that is to say, that in the end lack does a greater investment than the budgeted one initially.

Reason why it is recommendable, when to do our budgets or projections of investment, that always we reserve a small capital of emergencia, which we pruned to use in case needs to us a greater investment, and thus to resolve these disadvantages or unforeseen expenses.

Taken care of with the societies

If we have anticipated to be associated with somebody for the creation of a business, is recommendable that we look for partners who have the same aspirations that we, that so we are motivated as to initiate a new business.

We must look for partners who can contribute things that we did not prune to contribute, for example, that can contribute commercial contacts, experience or knowledge on a certain subject.

Also, before forming the society, we must put clearly in (preferably in writing) all the agreements and all measures that will take in case the society or the business do not obtain the anticipated results, for example, we must decide beforehand how the utilities will be distributed, which you will be the functions of each, how much it will contribute each, what actions will be taken in case is needed a greater investment, what measures will be taken in case one of the partners decides to retire, etc.

Good location of the premises

If our business implies the acquisition of the premises where our clients concur, we must choose or the location, for it, we must consider to whom they go directed to our products or services, the proximity or access that our clients and suppliers, the location of our competitors have, the rent costs or buys of the premises.

If we looked for the premises in a centric or concurred place, we will be more near the consumers, but we will have major competition, and the cost of the premises will be greater. On the contrary, if we chose the premises in a less centric place, the cost of the premises will be smaller, but we will be remoter of the consumers, although if our product is of quality, and we make a suitable publicity, the consumers will look for to us where we are.

Another point to consider at the time of deciding us by the certain premises, is that before taking it, we must be sure that the operation license will be granted, we must go to the authority in charge of it, and consult to them if they would give the license us for the type of business that we want to create, and nonsupposition that to the salary other equal businesses in the zone, also will give it to us. Also, we must make sure that we will not have problems with the neighbors, for example, which they could complain in case of having much noise.

Labels: Advice, Creation of businesses

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