Thinking of launching a business?
Planning and running a business may seem daunting, but it can be a lot of fun. However, it does require some careful thinking and planning.
You are the person most capable of planning, building, and running your business. Learn what it involves to start from scratch and succeed in business. Weigh all the pros and cons before making any decision.
Planning a new business
Considerable planning, important financial decisions, and legal steps go into setting up a new business.
- Financial planning includes finding financial sources, cash flow forecasts, managing costs and expenses, analyzing sales results.
- Marketing is all about how a venture and its products and services, appear to the world.
- Legal framework: Considering and obeying all legal requirements, surrounding the establishing of a new business.
- Operational planning: Examining everyday production processes and management issues, such as acquiring suppliers, employee hiring, investigating and choosing production methods, product handling and delivery, etc.
- Self-development: Examining your skill set, and what more is needed for managing a successful business.
- Networking: The kind of people you will need to know and how you can meet them, so as to help your business succeed.
What type of business do you wish to start?
- What sort of service or products will you be offering?
- What needs do they fulfill?
- Who will buy these services and products from you?
- How do you plan to finance this project? Do you know where financing can be found?
- How will people learn about your service and products?
- Record keeping
- Cash flow monitoring
- Contingency plans and financial reserves, including long range financial planning
Marketing is all about identifying the needs of consumers, and satisfying those needs in a profitable manner. It is necessary to identify the level of demand for your services, in the market you have decided to target.
A legal framework
A legal framework helps you evaluate the following:
- Types of business ownership
- Your business’ legal requirements regarding safety, health, employment legislation, etc.
- Tax liabilities like: income tax, government insurance contributions, VAT, etc.
Insurance Operational planning
Operational planning includes day-to-day business activities. You will have to choose:
- Reliable, secure suppliers, who can supply you with basic materials and other quality supplies.
- Building a website that tells your audience about your business, or helps you sell online.
- Inventory and where to store it.
- Measures you will need to take to secure your business.
- How to expand your business in future.
- An exit plan.
Self-development includes looking closely at your talents and current skill set, to determine what you still will need to learn, or how you can shorten the learning curve with assistance from a mentor, partner, or employees. Online or local courses can also benefit you greatly.
Networking is becoming increasingly important for small businesses and is a key aspect of the marketing process. Take an inventory of all your contacts and relationships, seeking those who can help your business.
Long term success
Owning a business can be very satisfying and is certainly the biggest learning experience of your life.
Careful planning, an understanding of the type of business you’ve chosen, in addition to the target market it is supposed to serve, will increase your chances of long term success.