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You
have dreamed of owning a business. Unlike majority of the
population, however, you are among the few who chose to act on
your business ideas. How can you
assure that your business will be a success?
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You
cannot. There is simply no way to predict whether your business
idea will succeed or not. A million and one thing can work
against you; but then again, another thousand factors will work
for you! One thing is sure, though. You do not start out by
giving up. And like going into battle, entrepreneurship needs
extensive amount of preparation.
Here
are a few weapons you need to take as you embark on your
entrepreneurial battle:
Do Your Homework. One
way to succeed is to work hard at not failing by anticipating
problems before they occur.
This means that you must do your assignments diligently!
Know every aspect of your business.
That knowledge will be vital for dealing with problems as
the business grows and changes. The more you know about your
business, the better your chances of success.
It
is a bad idea to go into a business just on a whim; you start a
business because you think that the solid economic fundamentals
are present. Look
before you leap: know if there is sufficient demand for the
product or service to make the business profitable; understand
who your customers are and how they can be reached; and
determine level of competition in your industry.
You can get market information from a variety of sources
-- attend seminars and join trade associations; read books and
trade publications; ask suppliers of materials. If you do not
have a business background, a business introductory class at a
local college would be advisable.
Planning is Key to Your Success. You
and your family's future and livelihood are at stake. So your
decision and planning to start a business are very serious
matter. Business planning is one of the few tasks that should
never be delegated, no matter how dreary it may seem.
Your business plan, at a minimum, should answer the
following questions:
- What
products or services will you offer, and who will be your
customers?
- What
are the strengths and weaknesses of your business ideas, and
what action can you take to eliminate or reduce the weak
points.
- What
is the market demand for your products or services?
- Where
will you locate your business, and why is it a good
location?
- What
kinds of facilities and inventories will you need?
- Who
are your competitors, and how do you plan to compete against
them?
- What
makes your business unique, and how do you plan to expand
your business?
Establish
a long-range plan that encompasses your business and financial
plans. Even though you work from home and think of your business
as a tiny informal company, planning will help you predict when
your business is going to turn a profit.
You also need to be able to compare expenses to revenue
as your business grows. The planning process will give you a
tool for prediction, and it gives you the ability to measure the
financial elements of your business. As much as possible, obtain
legal or financial advice from an attorney or accountant before
committing to any long range or major financial transactions.
You Must Wear Many Hats.
Small
business owners over time can become experts on a variety of
business areas. To be successful, you should know how to manage
all of the essential business disciplines, including accounting,
finance, economics, sales, marketing and operations.
Particularly at the start-up phase, entrepreneurs must be
willing to do everything themselves, unless you’re lucky
enough to have a Daddy who’ll give you a million dollars just
so you could hire a whole coterie of assistants. For most of us
struggling entrepreneurs, that means you do almost everything
– from the strategizing and planning, to writing
communication, marketing and cold-calling clients, to even
delivering your products. At the start, therefore, the most
important aspect is the mindset and willingness to do whatever
is necessary to make the business a success that you hope it
will be.
Invest in Good Equipment.
The
right equipment will make your work easier and your business
more efficient. Computers
and telecommunication equipments have become inexpensive that
you can run state-of-the-art communications out of your den.
Invest in good quality computer systems, fax and telephone
equipment. Get Internet connection, as business communication online can
be much quicker and more effective than phones or mail. A good
computer system can put your production right up at the level of
a large company for most services. To conserve cash used
equipment should also be considered.
So
what are your chances? The
better you think they are the better they generally are, and
don't forget that among thousands of others: Microsoft, Hewlett
Packard, Apple Computer, Domino's Pizza, and Walt Disney all
started as home-based businesses.
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About the Author:
Isabel M. Isidro is the Managing
Editor of PowerHomeBiz.com. Read her PowerHomeBiz
Small and Home Business
Blog
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