Some enthusiasts claim that there is no better time than now to own and run a business. It may be more prudent, however, for potential entrepreneurs to write down, research, and address exactly what it is they wish to do before they begin – as well as examine what starting a business will involve and how the process will be tackled. Without this knowledge (which can take six months or longer to accumulate), the entrepreneur will probably not be ready for business ownership. Just as important, critical outside obligations (e.g.: the onset of medical treatment, college tuition payments, financial problems, unresolved crisis, personal dilemmas, and so on...) should be taken care of beforehand to avoid distractions. The understanding and support of partners, spouses, or children is equally as crucial because many experienced practitioners insist that entrepreneurs do not have much time to spend with their loved ones during the first few years of a new business venture.
Where Is the Best Place to Start A Business?
The most obvious answer to this question is where there are plenty of customers. But one must also take into account the specifics of the area or region where prospective customers are located. For example, if you’re planning on setting up a business in a part of the world that you’re only partly familiar with (perhaps because you fell in love with it while on vacation), do plenty of homework first. According to the World Bank’s International Finance Corporation (IFC), entrepreneurs planning on starting a business in a foreign country or unfamiliar area should first ensure that the following situations exist:
1. There should be a low number of rules, regulations, paperwork, and licenses so the business and its activities can be made legitimate in a timely manner.
2. The business owner should be able to hire and fire employees with relative ease.
3. The business owner should have the capacity to draw up and enforce a legal contract.
4. The business owner should be able to obtain credit or borrow money.
5. A low number of steps and procedures should exist so that the business can either be closed down - or bankruptcy can be declared - with relative ease.
Advice For Startups
-Avoid rushing into uncharted territory. Don’t leap before looking.
Know the unexpected places where an entrepreneurial lifestyle may lead. For example, if you’re a jewelry worker who loves the craft, but you’re sick and tired of laboring for someone else and want to spend more time working as a designer, bear in mind that running your own business may involve more administrative than creative work.
Yes, it is possible to bake cookies, or build a piece of furniture, or design a website for a friend and be paid for it. But if you want to turn these pastimes into a business you must first find out if producing them on a regular basis can secure a living. these products/services in your area? If not, can you afford to attract distant customers and ship your product to them? Will the money you generate be enough to pay a mortgage and bills and support your family?
− Before taking the entrepreneurial plunge, prepare for the obstacles that stand in your way. Novel situations in business are rare so it is possible to determine much of what lies ahead.
− Don’t leave a paying job to start your own enterprise until you have first sorted out what you want to do, the direction you want to go, and the best time to start. Keep your current job while examining the self-employment options available. That way you won’t be deprived of income before you begin.
− If you have a good idea and have done your research, move quickly and prudently. Procrastination is a killer in the business world.
− Whether starting a business or launching a new product, remember that the idea is to score goals, not just kick the ball. 100% commitment is mandatory. The harder you work, the luckier you get. As famed Hollywood film producer Mike Todd once said, the meek may inherit the earth, but not in our lifetime. − Lastly, consider the often told (probably apocryphal) story about two explorers that were sent by a shoe company to a primitive part of the world to determine the viability of the market. ‘Complete disaster!’ wired the first explorer, ‘No one here wears shoes.’ The telegram from the second explorer arrived a few hours later. ‘Fantastic opportunity!’ it read, ‘No one here wears shoes!’
Also Take the following into consideration:
Summary of your business planning
The executive summary gives the outline of the plan’s key sections like your company’s mission and vision, brand profile, target markets, product and services, competition, marketing strategy and financial aspects. A good executive summary is engaging and brief, with just the first two pages convincing the reader to read on the entire business plan. In fact, your executive summary is the predominant factor that determines if your business plan will be read or dumped in the trash bin.
The Company description provides the profile of your company, its history, its drivers, what it does and how it operates. It is the company’s mission statement which is supposedly brief and direct to the point stating its purpose for business.
The Target Market
The target market section identifies in detail; the customers of your company, the brands and the products. This identification of target market will very much affect other operations in the company like marketing, manufacturing and the likes. It is important for market profiles to be specific because the success of the company will rely largely on how much this target market’s needs are identified and met. You need to ask the following questions:
Who are the business customers?
What value does the company give to the customers?
How does the company help customers to achieve it value?
Your Competitors
Another important element of a good business plan is the competition analysis. To write a good business plan and successfully launch your startup, you must identify the competition of the business. This goes beyond the profiles of such competing companies and brands. It should also include their strengths and weaknesses.
Tips For Increasing your business productivity
Marketing Strategies
Your Marketing strategy is another component of a business plan that addresses the five P’s of marketing; which are: product, price, person, place and promotion. Your company may have a good product but without an effective marketing strategy, everything is futile. To develop a good marketing strategy and plan, you need to answer the following questions:
What is my company selling?
What is the cost of my products and services?
Is the cost affordable to my customer?
How will be the product be distributed?
Operations
Yet another part of the elements and components of a business plan is the Operations segment, which describes the work flow of the business. It may not be detailed in the business plan but it should nonetheless have a structured view of the company’s working process.
Management And Organization Structure.
Management and organization identifies the organizational structure of your company including the key managers. This part is very important especially in terms of seeking capital because investors will be interested in the background of the company’s management team and their corresponding salary scale.
Long-term Plan
Long-term development is another critical component of a business plan. It shows in detail, the long term plans of your company by considering its future profits and growth. It provides a timetable for these plans as well as the sensitivity or risk factors. This part of the plan provides visual graphs of what the business will be like one, three, five or more years from now.
Financial Aspect
Lastly, the elements and components of a business plan would not be complete without the financials. This part has a clear view of the financial projections of the company for the first few years of the business. This part includes income statements, anticipated profits, cash flow analysis and break-even analysis.
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