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5 Tips to Start your Business
Are you concern with the economy? Your job status does not improve not matter how much you do. You feel that your job does not compensate you enough for your efforts. There are many reasons why you and I might be either worried or dissatisfied with the workplace that we are in. Changing jobs could help, but many times we end up feeling the same. Starting a business could be the answer to your concerns.
Many of us decided to start a business, such as selling services, and or goods. In my case, I sell my services and I run my business blog. If you have an idea, hobby or you have any specialized skill you can run your own business. Seriously, the majority of successful business owners created their business out of something that went wrong in their 8 to 5 jobs. Remember, in this case “wrong” means anything that dislike your job situation.
1. The Idea…your Business
Starting a business requires an idea. You must find in your “toolbox” something that you do or you like capable of moving you into action. For example, you bake cakes for all your family reunions, and work gatherings. You have mastered your own recipe. Probably, if you start your cakes’ business you could sell two or three of your recipes to your clients. Who are your clients? Initially, your coworkers, family, neighbors and friends. Start small, test the waters let your idea find its way.
2. Measure your Costs
Yes, you have to measure your costs!! How much cost your services or goods? Just to make one, two, ten and so on? When you do things for family and friends, you might not care about the costs but when it is for business, you need to know. When measuring costs you have to segregate what do you use for each service or good you will sell and what do you need to have to perform your activity. For example, in our cake example, you have to segregate between the cake’s ingredients (flour, eggs, milk and so on) and the tools (mixer, kitchen utensils, oven and so on). In addition, you must evaluate other costs such as utilities, space, transportation, and other necessary to carry your activity. Knowing your costs help in pricing correctly.
Rule of thumb – treat your customers like family, use good quality ingredients and/ or materials, because it will payoff in the future.
3. Pricing your Service or Goods
Your costs will set the tone for your pricing. You want to sell with a profit, so you can cover all your costs. Profit is your reward for what you do. Therefore, you must set a price that it compensate you and allows you to grow your business. The majority of businesses rely on volume; thus, the more you sell the better for you. When pricing take into consideration these factors: competition, geographic location, potential clients and your suppliers.
4. Marketing
Starting a business is all about being budget conscious . Therefore, the following tips should be more than enough to start. The best marketing… word of mouth, yes your clients will be your best testimony. A satisfied customer brings more business. These are my marketing steps:
- Print or purchase business cards.
- Create an email just for your business, not personal.
- Create a blog for your business.
- Use your social media friends to let them know about your business.
5. Create a Business Plan
A business plan is a formal written document with objectives and strategic goals designed for achievement within a certain period of time. Every business should have an updated business plan. This document is important because it sets the tone for the strategic planning and will aid you to pursue business with a sense of direction.
Most business plans have the following sections:
- Executive Summary
- Business Description
- Market Analysis
- SWOT Analysis
- Management
- Human Capital
- Sales and Distribution Strategies
- Marketing
- Financial Projections
- Budget and Financials
If your need more information about a business plan check this post.
Conclusion:
Starting a Business requires that you analyze certain areas close to you. Most successful businesses are hobbies and ideas transformed into profitable businesses. Start small with your closed ones and grow as you improve and better your ideas and delivery. Hope you get a lot of success!!
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